JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 9

In a civil suit to which bank is not a party has produced certified copy of books of account. One party to the suit wants to call bank officer as witness to prove the contents of copy. Can it be done? 


Options are :

  • Yes, as it is right of the party to get it reaffirmed in evidence.
  • No, as the certified copy is a prima facie evidence that is admissible in evidence
  • No, unless the bank volunteers to do so
  • Yes, but if Court allows the application to call the witness

Answer :No, as the certified copy is a prima facie evidence that is admissible in evidence

JAIIB - Principles and Practices of Banking Mock Tests Set 1

For the purpose of exposure norms, which of the following is true for inclusion under exposure? (i) 100% of  both  fund  based  and  non  fund  based  credit  limits,  (ii)  Sanctioned  limit  or  outstanding  whichever  is higher  shall  be  considered,  (iii)  In  case  of  fully  drawn  term  loans  outstanding  and  not  the  limit sanctioned will be considered. 


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :Only (ii) and (iii)

In a contract of indemnity, the person who makes the promise to save a person from loss is called ______ and the person who is entitled to be compensated is called _____: 


Options are :

  • Surety, indemnifier
  • Indemnity holder, indemnifier
  • Indemnifier, indemnity holder
  • Indemnity holder, surety

Answer :Indemnifier, indemnity holder

A bank guarantee was issued and the validity period of the guarantee has expired . Bank did not get any claim from the beneficiary within a period of one month, given to the beneficiary, for loading claim. Later on, after a year, the beneficiary makes a demand on the bank against the guarantee as cause of action had arisen during the validity period: 


Options are :

  • The bank is liable on the guarantee within the period specified in the guarantee bond
  • Bank is not liable now as the claim was not made by the beneficiary during the time, given for lodging the claim
  • Bank is liable on the guarantee if the claim is made within 3 years from date of cause of action that has arisen during the validity period
  • Bank is liable on the guarantee if the claim is made within 1 year from date of cause of action that has arisen during the validity period

Answer :Bank is liable on the guarantee if the claim is made within 3 years from date of cause of action that has arisen during the validity period

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

A bank which is appointed by the opening bank to make payment on behalf of the opening to the negotiating bank when documents are presented on due date, is called: 


Options are :

  • Reimbursing bank
  • Confirming bank
  • Correspondent bank
  • Opening bank

Answer :Reimbursing bank

What is a certified copy


Options are :

  • A copy of any entry in the Books of a Bank along with a certificate that copy is a True Copy
  • That such entry is contained in one of the Books of the Bank.
  • And such Books are still under the custody of the Bank
  • A copy which includes all the above information.

Answer :A copy which includes all the above information.

What are the powers of the court in case of legal proceedings under the Bankers Books Evidence act? 


Options are :

  • permit the affected party to inspect the Books and take copies
  • Order the Bank to prepare the produce within specified time the certified copies
  • Order the Bank to prepare certificates as desired under the Law
  • All the above

Answer :All the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

In _______ LC, the beneficiary transfer his rights in the letter of credit to 3Rd  parties: 


Options are :

  • Irrevocable LC
  • Transferable LC
  • Green clause LC
  • Red clause LC

Answer :Transferable LC

'A' has purchased a draft from a bank favouring 'B'. The draft is lost in transit and for duplicate draft in lieu of first bank need some formalities to be completed by 'A'. Can 'B' file a consumer case against the formalities as at is delaying payment to him. 


Options are :

  • No, as he is not consumer of the bank and is not taking any service from the bank
  • No, as he has not paid the demand draft commission
  • Yes, as because of bank his payment is getting delayed.
  • Yes, his money is lying in the bank, he is deemed as account holder of the bank

Answer :No, as he is not consumer of the bank and is not taking any service from the bank

Interest rate on which of the following have been deregulated by RBI? (i) DRI, (ii) Ceiling rate on export credit, (iii) Ceiling rate on educational loans 


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :Only (ii) and (iii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Mere signature of the payee on the reverse of the instrument is called ...... endorsement 


Options are :

  • full
  • blank
  • conditional
  • restrictive

Answer :blank

‘Sans recourse’ means ...... 


Options are :

  • I am not afraid
  • Do not touch me
  • ask the drawer
  • without liability to me

Answer :without liability to me

A bank releases document of title to the goods to the borrower without payment. To cover such transaction, the bank obtain: 


Options are :

  • Mortgage deed
  • Hypothecation letter
  • Pledge agreement
  • Trust receipt

Answer :Trust receipt

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Which of the mortgage is negatively defined out of the  following: 


Options are :

  • English mortgage
  • Usufructuary mortgage
  • Simple mortgage
  • Anomalous mortgage

Answer :Anomalous mortgage

In case of safe deposit licker the relation between Bank and Customer is Bank ...... and Customer ...... 


Options are :

  • Agent, Principal
  • Lessor, Lessee
  • Creditor, Debtor
  • Debtor, Creditor

Answer :Lessor, Lessee

A revocable LC is one which can be amended or cancelled by............without prior notice. 


Options are :

  • Any or all parties of LC
  • The beneficiary
  • The issuing bank
  • None of the above

Answer :The issuing bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Bailment is the delivery of goods 


Options are :

  • as security
  • for safe custody
  • for using on rent
  • for sale or return

Answer :for safe custody

Which of the  following statement is not true with regard to a partnership firm: 


Options are :

  • Registration of firm is optional and not compulsory
  • A registered firm is preferred for financing by the banks as it is in a better position to recover its due amount
  • bank can file suit only if the firm is registered one
  • Registration of firm can take place with registrar of firms

Answer :bank can file suit only if the firm is registered one

Banks are to maintain records of all series of cash transactions integrally connected to each other which have been valued below Rs.10 lac where such series of transactions have taken place _____, as per Prevention of Money Laundering Act 2002:  


Options are :

  • On a particular day
  • During a particular week
  • Within a month
  • Within 10 weeks

Answer :On a particular day

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Which among the following statements do not match: 


Options are :

  • A govt. company – where at least 50% shares are held by govt
  • Holding company- which is holding more than 50% shares of another company
  • Subsidiary company – a company whose majority shareholding is with another company
  • Private company- which cannot invite public to subscribe its shares

Answer :Private company- which cannot invite public to subscribe its shares

What are the important features of securitization? 


Options are :

  • It is process through which illiquid Assets are transferred into more liquid from of Assets
  • The lending institution's Assets are removed from it Balance Sheet
  • These Assets are funded by investors through a negotiable financial instrument
  • All the above

Answer :All the above

Two parallel transverse lines across the cheque is called ...... 


Options are :

  • endorsement
  • transfer
  • assignment
  • crossing

Answer :crossing

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Which of the following is not correct in connection with a Muslim Trust: 


Options are :

  • It called Wakf
  • The trustee is called Mutawali
  • It is regulated by Wakf Board
  • None of the above

Answer :It called Wakf

A temporary overdraft is allowed by the bank to a partnership firm for quite some time. The cheques issued by the firm are paid to the debit of this overdraft occasionally. A cheque is returned by the bank stating arrangement exceed although there was no debit balance in the overdraft account at the time of returning of the cheque. The bank has not given any prior notice to the customer for not allowing such facility any more. The firm claims damages from the bank 


Options are :

  • Bank is liable for the damages as it has breached an implied contract without fiving a notice to the party
  • Being temporary overdraft, bank is not under obligation to continue the overdraft for a long period
  • Party cannot claim any damages
  • Party could not claim damages as it was a temporary overdraft

Answer :Bank is liable for the damages as it has breached an implied contract without fiving a notice to the party

The essentials of valid equitable mortgage is debt, deposit of title deeds and ...... 


Options are :

  • Intention as security
  • Intention of sale deposit
  • Either a or b
  • Neither a not b

Answer :Intention as security

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Which of the following statements, is correct? 


Options are :

  • There is no period of limitation for sale of pledged goods.
  • In case of Hypothecation the limitation period is 3 years from the date of loan.
  • Bill of exchange has 3 years limitation period from the due date
  • All the above

Answer :All the above

A 60 days notice is given to the owner of assets under SARFAESI Act before taking over the possession: 


Options are :

  • u/s 10(3)
  • u/s 13(2)
  • u/s 14(4)
  • u/s 14(4)

Answer :u/s 13(2)

A private key and its mathematically related public kay which are so related that the public kay can verify a digital signature created by the private key, is called


Options are :

  • digital signature
  • asymmetric crypto system
  • electronic monitoring
  • key paid

Answer :key paid

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

A contract to perform the promise or discharge the liability of a 3rd party, if the 3rd party defaults, is called, a contract of _____: 


Options are :

  • Insurance
  • Guarantee
  • Indemnity
  • Assurance

Answer :Guarantee

Which of the following statements is correct regarding the provisions of Bankers Book Evidence act? 


Options are :

  • Entries in Books of Accounts regularly kept in the course of Business are relevant in the matter of court inquiry.
  • However, above statements shall not be alone be sufficient evidence to cheque any person with liability
  • The entries in the books can be used as corroborative evidence,
  • All the above

Answer :All the above

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