JAIIB - Principles and Practices of Banking Mock Tests Set 11

Treasury Bill is :       


Options are :

  • Negotiable security.
  • non-negotiable security
  • no security at all.
  • quasi negotiable security
  • None of the above

Answer :Negotiable security.

JAIIB - Principles and Practices of Banking Mock Tests Set 12

Who issues treasury bills ?       


Options are :

  • Reserve Bank of India, as the agent of the Central Government
  • Any govt, deptt, of State and Central
  • Any Commercial Bank
  • All of the above
  • None of the above

Answer :Reserve Bank of India, as the agent of the Central Government

Certificate of deposit refers to :       


Options are :

  • a certificate issued by Reserve Bank of India, stating the amount of deposit held by a bank.
  • a certificate issued by Regional Rural Bank of its depositors
  • a negotiable money market instrument, issued in dematerialized form or as a usance promissory note, for funds deposited at a bank or other eligible financial institution for a specific time period
  • None of the above
  • All of the above

Answer :a negotiable money market instrument, issued in dematerialized form or as a usance promissory note, for funds deposited at a bank or other eligible financial institution for a specific time period

What is a Financial system?       


Options are :

  • Financial System means a mechanism in an economy to mobilize the monetary resourcescapital from various surplus sectors of the economy and to allocate and distribute the same to various needy sectors.
  • A system to access the demand and supply of the finance
  • An arrangement to finance the farmers of the country
  • A system to put financial management on the borrowers of the schedule commercial banks of the country
  • None of these

Answer :Financial System means a mechanism in an economy to mobilize the monetary resourcescapital from various surplus sectors of the economy and to allocate and distribute the same to various needy sectors.

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Which of the following types of business cannot be taken up by a banking company u/s 6 (1) of banking Regulation Act:


Options are :

  • Buying, selling and dealing in bullion
  • Acquiring and holding shares and debentures
  • Purchasing of bonds, scrips and other forms of securities
  • Sale and purchase of immovable property for any purpose

Answer :Sale and purchase of immovable property for any purpose

RBI was established in 1935 pursuant to the recommendations of :       


Options are :

  • The Hilton Young Commission
  • All India Rural Credit Survey Committee
  • Gorawala committee
  • Talwar Committee
  • None of the above

Answer :The Hilton Young Commission

A customer has a right to ask the bank to return him a paid instrument beforethe expiry of period of such instruments under the provisions of :      


Options are :

  • Section 131 of the Negotiable Instruments Act, 1881
  • Section 34 of Reserve Bank of India Act, 1934
  • Section 45 Z of Banking Regulation Act, 1949.
  • All of the above
  • None of the above

Answer :Section 45 Z of Banking Regulation Act, 1949.

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Which of the following is a product, that is offered by banks in wholesale banking: 


Options are :

  • Fund based services such as structured finance
  • Non-fund based products such as LC
  • Value-assed services such as cash management services
  • All the above

Answer :All the above

While returning a paid instrument to a customer in terms of Section 45 Z (1) ofthe Banking Regulation Act, 1949, the bank must :       


Options are :

  • retain a true copy of all relevant parts of such instrument.
  • retain a Xerox copy of such instrument duly certified by a notary
  • obtain an order from the competent court before returning the paid instrument
  • None of the above.
  • All of the above

Answer :retain a true copy of all relevant parts of such instrument.

Where RBI cancels the banking licence of a banking company, the appeal can be made to: 


Options are :

  • Central Govt.
  • Company law Board
  • High Court
  • Supreme Court

Answer :Central Govt.

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Section 26 of the Banking Regulation Act, 1949 requires every banking company to submit an annual return to the Reserve Bank of India, in respect of :       


Options are :

  • advances to agriculture sector
  • all accounts in India which have not been operated upon for ten years.
  • advances allowed to priority sector
  • details of its demand and time liabilities
  • None of the above

Answer :advances allowed to priority sector

As per the provision of Section 29 of the Banking Regulation Act, every banking company is required to prepare its final accounts; viz, Profit & Loss a/c and Balance Sheet in the firms prescribed in :     


Options are :

  • the Second Schedule to the RBI Act, 1934.
  • the Third Scheduled to the Banking Regulation Act, 1949
  • Table A to the Companies Act. 1956.
  • None of the above
  • All of the above

Answer :the Third Scheduled to the Banking Regulation Act, 1949

In  ____  banking,  the  banks  offer  all  types  of  financial  services  to  expand  their  business  that include high risk products and medium risk products also: 


Options are :

  • Retail banking
  • Universal banking
  • Wholesale banking
  • Narrow banking

Answer :Universal banking

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

A commercial paper refers to :       


Options are :

  • an unsecured money market instrument issued in the form of promissory note
  • a paper issue by commercial organisation
  • a secured money market instrument.
  • a letter issued by scheduled commercial banks for seeking refinance from NABARD.
  • None of the above

Answer :an unsecured money market instrument issued in the form of promissory note

Which of the following is a disqualification of a person to be appointed as director on the board of a bank (a) who has been adjudicated insolvent (b) who has suspended payment of his dues (c) who  has  compounded  with  his  creditors  (d0  who  has  been  convicted  by  criminak  course  of offence involving moral turpitude: 


Options are :

  • A, b and c only
  • A, c and d only
  • B, c and d only
  • A to d all

Answer :A to d all

Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements as measure of credit control are classified as :      


Options are :

  • Quantitative methods.
  • Qualitative methods
  • Weighted average methods
  • None of these
  • Both (a) and (b).

Answer :Both (a) and (b).

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

'Currency of India' refers to :      


Options are :

  • one rupee notes only
  • One rupee notes and coins
  • Banks notes issued by Reserve Bank of India, i.e., Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500 and Rs. 1000.
  • one rupee notes and coins and bank notes issued by Reserve Bank of India.
  • None of the above

Answer :one rupee notes only

The  banker  customer  relationship  arises  from  various  types  of  services  rendered  by  the  bank. Which of these is not a correct (a) deposit (b) lending (c) remittances such as demand drafts stc. (d) conducting govt. transactions:


Options are :

  • C only
  • D only
  • C and d only
  • None of the above

Answer :None of the above

The note issue system in India is based on :      


Options are :

  • Gold Deposit System
  • Minimum Reserve System.
  • Proportional Reserve System
  • Simple Deposit System.
  • None of the above.

Answer :Gold Deposit System

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Under  a  debtor  creditor  relationship  arising  in  case  of  deposits  ,  the  limitation  period  begins from: 


Options are :

  • Date of deposit
  • Date of deposit if a demand deposit and date of maturity in case of a term deposit
  • Date of maturity in all cases
  • Date of demand by the customer

Answer :Date of demand by the customer

Banks notes are issued under the signature of :      


Options are :

  • Dy. Governor of Reserve Bank of India
  • Governor o Reserve Bank of India
  • Chairman and Managing Director of Reserve Bank of India
  • Any authorised official of RBI.
  • None of the above

Answer :Any authorised official of RBI.

A  customer  deposits  some  money  in  his  deposit  account  with  the  bank  but  forgets  to  provide complete  particulars  of  the  account.  The  bank  credits  the  funds  in  sundries  account.  The relationship between bank and customer in this case is: 


Options are :

  • Debtor creditor as the funds were deposited for a deposit account
  • Bailee and bailor, as the money has been received by bank
  • Agent and principal, as the bank will act as agent for the funds
  • Trustee and beneficiary

Answer :Trustee and beneficiary

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

The approved assets against which currency notes are issued by RBI, comprise of 


Options are :

  • gold coin and bullion and rupee coin
  • foreign securities and rupee securities of Government of India, of any maturity
  • bills of exchange and promissory notes payable in India which are eligible for purchase by RBI
  • All of the above
  • None of the above.

Answer :bills of exchange and promissory notes payable in India which are eligible for purchase by RBI

Retail Banking refers to :       


Options are :

  • provision of the basic services of a bank to the individuals
  • credit facilities provided to retail traders, departmental shares etc
  • collection and payments of large number of dividend warrants, interest warrants and refund orders.
  • salary distribution of a large organisation
  • All of the above

Answer :provision of the basic services of a bank to the individuals

In  a  demutualization  process,  a  stock  exchange  is  transformed  from  a  mutually  owned association to:


Options are :

  • Large corporate
  • Shareholders owned company
  • Public sector undertaking
  • Limited liability partnership

Answer :Shareholders owned company

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Retail loans consist of :       


Options are :

  • Consumer credit for specific purpose.
  • Credit for general purpose
  • Both of the above
  • None of the above
  • All of the above.

Answer :Both of the above

Aggregate  investment of a bank in its subsidiary companies cannot exceed _____% of ____ the bank: 


Options are :

  • 15% , capital fund
  • 15%, paid up capital
  • 20%, paid up capital
  • 20%, net worth

Answer :20%, paid up capital

Commercial paper is issued for a period of :       


Options are :

  • 46 days
  • 7 days to one year
  • not exceeding three years
  • not exceeding five years
  • None of the above.

Answer :46 days

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Who can make investment in a commercial paper ?      


Options are :

  • Individuals.
  • Banking companies
  • Corporate bodies registered or incorporated in India and unincorporated bodies
  • Non Resident Indians (NRIs) and Foreign Institutional investor (FIIs).
  • All of the above

Answer :All of the above

Global depository receipts are listed on _____ stock exchanges: 


Options are :

  • American
  • European
  • Asian
  • Indian

Answer :European

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