JAIIB - Principles and Practices of Banking Mock Tests Set 12

Which of the following statements in regard to commercial paper is not INCORRECT ?       


Options are :

  • Commercial papers are money market related instruments.
  • Commercial papers are traded in the Secondary Market
  • Commercial papers attract stamp duty under the provision of India Stamp Act
  • The difference between the issue price and the face value of the C.P. is treated as Discount allowed.
  • All of the above

Answer :All of the above

JAIIB - Principles and Practices of Banking Mock Tests Set 13

Which of the following were considered to be compelling reasons for Bank Nationalisation ?       


Options are :

  • Concentration of wealth and economic power in the hands of industrialists and businessman
  • Branch expansion was confined to urban areas and rural areas were being neglected.
  • Sectors like agriculture, small scale industries and the other deserving sectors were outside the purview of bank lending operations
  • Various malpractices indulged in by banks under private ownership.
  • All of the above

Answer :All of the above

The Banking Regulation Act, 1949, consists of :       


Options are :

  • 50 sections
  • 142 sections
  • 56 sections
  • 100 sections
  • None of these

Answer :56 sections

What  is  the  maximum  extent  up  to  which  a  single  shareholder  can  exercise  voting  rights  u/s  12(2) of Banking Regulation Act: 


Options are :

  • 20%
  • 12.5%
  • 15%
  • 26%

Answer :26%

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

The provision of Section 21 of the Banking Regulation Act, 199, empowers Reserve Bank of India to :       


Options are :

  • inspect the banking companies.
  • to regulate CRR & SLR
  • control advance by banking companies
  • All of the above
  • None of the above

Answer :control advance by banking companies

Demand liabilities mean :  


Options are :

  • liabilities which are payable within one year from the date of balance sheet.
  • liabilities which must be met on demand
  • current and saving deposits.
  • None of the above
  • All of the above

Answer :All of the above

Review of monetary and credit policy is conducted by RBI on 


Options are :

  • Bi-monthly basis,
  • Quarterly basis
  • Half-yearly basis d yearly basis.

Answer :Bi-monthly basis,

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Urban Cooperative Banks are controlled by ...... (i) NABARD, (ii) State Governments, (iii) RBI  


Options are :

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

Answer :Only (ii) and (iii)

A banking company can acquire shares in a company as a pledge, mortgagee, assignee etc. subject to which ofthe following ceiling:


Options are :

  • Not exceeding 30% of the capital of the bank or 30% of the capital of the company, whichever higher
  • Not exceeding 30% of the reserves of the bank or 30% of the capital of the company whichever is lower
  • Not exceeding 30% of the paid up capital and reserves of the bank or 30% of the capital of the company whichever is lower
  • 30% of the capital of the company
  • 30% of the authorised capital of the bank or 30% of the capital of the company

Answer :Not exceeding 30% of the paid up capital and reserves of the bank or 30% of the capital of the company whichever is lower

Depositories hold securities in ...... form. (i) Demat, (ii) Physical  


Options are :

  • Only (i)
  • Only (ii)
  • Either (i) or (ii)
  • Both (i) and (ii)

Answer :Only (i)

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Which of the following interest rates is fixed by RBI and not left to the discretion of the banks concerned? 


Options are :

  • Saving bank deposits
  • Export credit facilities
  • NRE deposit accounts
  • DRI advances

Answer :DRI advances

Banking companies are licensed by _______ .       


Options are :

  • Reserve Bank
  • Registrar of companies
  • Company Law Board

Answer :Registrar of companies

Banks can allow loans against specially minted gold coins up to per borrower:


Options are :

  • 200 gm
  • 150 gm
  • 100 gm
  • 50 gm

Answer :50 gm

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

A restaurant provides food as well as service along with the infrastructure for use. This type of product can be classified as: 


Options are :

  • Pure tangible goods
  • Tangible goods with accompanying services
  • Hybrid
  • Major service with accompanying minor goods

Answer :Hybrid

Which among the following is correct in the context of branding of products: 


Options are :

  • A brand can be a sign or symbol but not a name
  • Value of brand is its power to capture consumer preference and loyalty
  • Brands help in providing legal protection due to unique features
  • Strong brands enjoy high level of consumer awareness and loyalty

Answer :A brand can be a sign or symbol but not a name

Interest is calculated on actual/365 days basis in respect of the following products, except one : 


Options are :

  • Call Money
  • Notice Money
  • Term Money
  • GOI dated securities

Answer :GOI dated securities

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

A Co-Operative Bank operating in different States are regulated by: 


Options are :

  • State Co-Operative Societies Act
  • Banking Regulation Act
  • Multi Unit Co-Operative Societies Act
  • Banking Laws (applicable to Co-Operative Societies)

Answer :Multi Unit Co-Operative Societies Act

Introducing RTGS and NEFT in remittance product category are example for ...... 


Options are :

  • Line extension
  • Brand extension
  • Multi brands
  • New brands

Answer :Multi brands

Government can exempt a bank from provision of BR Act ______   


Options are :

  • On the recommendation of RBI
  • Whenever the government is satisfied
  • If requested by a bank

Answer :On the recommendation of RBI

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

The rates of interest on loans and advances given by banks w.e.f. 01.04.2016 are to be determined with reference to:


Options are :

  • Bench mark prime lending rate,
  • Marginal cost of funds based lending rate,
  • Base rate
  • Bank rate

Answer :Marginal cost of funds based lending rate,

According to Companies Act, maximum duration of financial year is ...... .


Options are :

  • 12 months
  • 12 months which can be extended upto 15 months
  • 18 months
  • 15 months which can be extended upto 18 months

Answer :15 months which can be extended upto 18 months

A & B are maintaining an 'E or S' account. D has been named as nominee. Balance in the account will be payable to ...... on the death of A  


Options are :

  • Jointly to B and Nominee D
  • Jointly to B and legal heirs of A
  • B alone
  • D alone

Answer :B alone

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Which  of  the  following  is  true  in  respect  of  opening  of  account  in  the name  of  Pardanashin woman?


Options are :

  • Can be opened for literate and illiterate Pardanashin woman
  • Can't be opened for either literate or illiterate Pardanashin woman
  • Can be opened for literate Pardanashin woman only
  • Can be opened illiterate Pardanashin woman only

Answer :Can be opened for literate Pardanashin woman only

Trading in shares and securities by banks is subject to control by ______     


Options are :

  • Controller of Capital Issues
  • SEBI
  • Company Law Board

Answer :SEBI

Loan to value ratio for a home loan up to Rs.30 lac can be maximum:


Options are :

  • 90%
  • 80%
  • 75%
  • 70%

Answer :90%

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

The seven P's of service marketing in the context of banking services represent ...... 


Options are :

  • Production, procurement, price, promotion, place, process and people
  • Product, price, promotion, place, process, physical evidence and people
  • Purchase, presentation, price, promotion, people, payment and persistent
  • None of these

Answer :Product, price, promotion, place, process, physical evidence and people

Cross-selling is a basic function of ...... 


Options are :

  • All employers
  • All employees
  • All salespersons
  • Planning Department

Answer :All salespersons

Effective  selling  skills  does  not  depend on  ......  (i)  Size  of  the  sales  team,  (ii)  Peer  strength,  (ii) Knowledge level of the sales team  


Options are :

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

Answer :Only (i) and (iii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Section 5(b) of ______ Act gives the definition of the term 'Banking'    


Options are :

  • Contract Act,
  • Negotiable Instruments Act,
  • Banking Regulation Act
  • Transfer of Property Act.

Answer :Banking Regulation Act

Principle functions of the Bank are:     


Options are :

  • Dispatch of statements
  • Adjustment of Interoffice Transactions
  • Clearing
  • Acceptance of deposits for Lending and investment.

Answer :Acceptance of deposits for Lending and investment.

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