JAIIB - Principles and Practices of Banking Mock Tests Set 1

Accounts jointly with residents can be opened in the case of __________ accounts.       


Options are :

  • FCNR (B) and NRE
  • NRO and NRNR

Answer :NRO and NRNR

JAIIB - Principles and Practices of Banking Mock Tests Set 10

When account is following is closed by the bank, proper________ should be given to the customer      


Options are :

  • thanks letter
  • guarantee
  • notice
  • demand

Answer :notice

Under the marginal cost of funds based lending rate (MCLR), the banks are required to publish the internal benchmark for the following maturities (1) overnight MCLR (2) one-month MCLR (3) three month MCLR (4) six month MCLR : 


Options are :

  • 1 only,
  • 1 and 3 only,
  • 1, 3 and 4 only
  • 1to 4 all

Answer :1to 4 all

The SLR cannot be less than% of net demand and time liabilities of a bank:


Options are :

  • 25%
  • RBI discretion
  • 30%
  • 35%

Answer :RBI discretion

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

New Prudential Accounting Norms cover      


Options are :

  • interest rates
  • Method of lending
  • Deposits
  • Capital adequacy, income recognition, Assets classification and Provisioning

Answer :Capital adequacy, income recognition, Assets classification and Provisioning

RBI ensures that banks operate within set norms by conducting _________ inspections and _________ monitoring.      


Options are :

  • on-site, off-site
  • field, commodity prices
  • stock, stock market

Answer :on-site, off-site

Principal function of banks are :      


Options are :

  • accepting deposits
  • lending and investing
  • non fund business and remittance services
  • all of above

Answer :all of above

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Which section of the respective Act covers the SLR: 


Options are :

  • Section 24(2A) of BRA 1949
  • Section 23 of BRA 1949
  • Section 27 of RBI Act
  • Section 24(2) of RBI Act

Answer :Section 24(2A) of BRA 1949

Unsecured exposure in the context of bank loans means where the quantum of security is , compared to amount of loan at the time of sanction of the loan:


Options are :

  • less than 50%
  • 25% or less
  • 10% or less
  • no security taken

Answer :no security taken

Which of the following is correct in connection with loan sanctioned to directors of other banks, or their relatives or relatives of directors of own bank:


Options are :

  • loan below Rs.25 lac can be sanctioned to directors of other banks by an authority approved by the board of the bank
  • loan can be written off with permission of RBI
  • loan against deposit or NSCs or Life Insurance Policy,can be sanctioned to the director of the same bank also,
  • All the above

Answer :All the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

The Regional Rural Banks are sponsored by:      


Options are :

  • Reserve Bank of India
  • NABARD.
  • Any scheduled commercial bank
  • All of these
  • None of the above

Answer :Any scheduled commercial bank

Paid up share capital of Regional Rural Bank is contributed by:       


Options are :

  • Nationalised bank
  • NABARD
  • Central Government
  • Central Government. State Government and the Sponsoring Commercial
  • Reserve Bank of India

Answer :Central Government. State Government and the Sponsoring Commercial

Regional Rural Banks are classified as:       


Options are :

  • Scheduled Commercial Banks.
  • Public Sector Banks
  • Co-operative Banks
  • Private Sector Banks
  • None of the above

Answer :Scheduled Commercial Banks.

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

A bank's aggregate exposure to capital markets should not exceed of the net worth of the bank on a solo and consolidated basis: 


Options are :

  • 40%
  • 10%
  • 5%
  • 2%

Answer :40%

If a loan against the security of gold jewellery is allowed for non-agriculture activity, the maximum loan to value ratio in such cases can be: 


Options are :

  • 75%
  • 80%
  • 85%
  • 90%

Answer :75%

Loans against the deposits of other banks: 


Options are :

  • are sanctioned after getting lien noted with other banks
  • are not sanctioned by banks because lien is not possible but right of set off is available
  • are not sanctioned by banks because there could be possibility of frauds
  • are not sanctioned by banks because these are not allowed by SEBI

Answer :are not sanctioned by banks because there could be possibility of frauds

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

The regulatory Authority for Regional Rural Banks is:       


Options are :

  • RBI and NABARD
  • Sponsoring Bank
  • State Government and Central Government and Sponsoring Bank in the ratio
  • None of the above
  • All of the above

Answer :RBI and NABARD

RRBs have been making contribution in the area of rural credit since reception still they suffer from the following weaknesses


Options are :

  • Poor capital structure
  • Increasing overheads and decreasing profits
  • Lack of effective coordination between Commercial Banks, Co-operative Banks
  • All of the above.
  • None of the above

Answer :All of the above.

A bank cannot grant any loans and advances on the security of its own shares under the provisions of: 


Options are :

  • Section 19(B) of Banking Regulation Act Section
  • 21(3) of Banking Regulation Act
  • Section 20(1) of Banking Regulation Act Section
  • 21(B) of Reserve Bank of India Act

Answer :Section 20(1) of Banking Regulation Act Section

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Regional Rural Bank are empowered to transact the business of banking as defined under:      


Options are :

  • Section 5 (b) of Banking Regulation Act, 1949
  • Union Budget every year
  • Regional Rural Banks Act, 1976
  • Negotiable Instrument Act, 1981
  • All of the above

Answer :Section 5 (b) of Banking Regulation Act, 1949

The co-operative credit system consists of:       


Options are :

  • Short term agricultural credit institutions
  • Long term agricultural credit institutions
  • Non-agricultural credit institutions
  • All of the above
  • None of the above

Answer :All of the above

The short term agricultural credit institutions are in three categories


Options are :

  • Central Co-operative Banks at the District level
  • Long term agricultural credit institutions
  • State Co-operative Banks at the state level
  • All of the above
  • None of the above

Answer :All of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

U/s 20A of Banking Regulation Act, the loan in the name of a bank director, can be remitted (written off) with the permission of: 


Options are :

  • Bank board only
  • RBI only
  • Ministry of Finance
  • Ministry of Finance and RBI only

Answer :RBI only

Bank finance for buy-back of its own shares cannot be allowed to a company because u/s 77 A (1) of Companies Act, the company can buy-back, out of: 


Options are :

  • its free reserves
  • security premium account
  • proceeds of any shares or other specified securities
  • all the above

Answer :all the above

The working funds or primary agricultural societies is obtained from:       


Options are :

  • Owned funds comprising share capital. entrance fees and the reserve fund.
  • Deposits from members and non-members
  • Loans from co-operative Central Banks and the Governments
  • All of the above
  • None of the above

Answer :All of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

RBI was nationalised in:      


Options are :

  • 1935
  • 1949
  • 1955
  • 1969
  • 1947

Answer :1935

On 19th July 1969, 14 banks were nationalised, these banks had deposits of : more than:       


Options are :

  • Rs. 25 crore
  • Rs. 75 crore
  • Rs. 85 crore
  • Rs. 100 crore
  • None of these

Answer :Rs. 75 crore

The first Land Mortgage Bank was established in:      


Options are :

  • 1920 at Jhind in Panjub
  • 1947 at New Delhi
  • 1962 at Jammu
  • None of the above.

Answer :1920 at Jhind in Panjub

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

The main objective of Land Development Bank is:      


Options are :

  • Providing investment credit for agriculture
  • Providing crop loans to the farmers
  • Developing allied activities in rural and semi-urban areas
  • Creating good social relations in the residents of rural and semi-urban areas
  • None of the above

Answer :Providing investment credit for agriculture

The following categories of loans can be priced without being linked to MCLR as the benchmark for determining interest rate: (1) Advances to banks' depositors against their own deposits. (2) Advances to banks' own employees including retired employees. (3) Advances granted to the Chief Executive Officer / Whole Time Directors. (4) Loans linked to a market determined external benchmark.  


Options are :

  • I only
  • I and 3 only,
  • I, 3 and 4 only
  • I to 4 all

Answer :I to 4 all

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