JAIIB - Principles and Practices of Banking Mock Tests Set 17

As per Exchange Traded Currency Options (RBI) Directions 2010, the underlying for the currency option shall be spot rate;


Options are :

  • Euro-Indian Rupee spot rate
  • USD-Indian Rupee spot rate
  • USD & Euro -Indian Rupee spot rate
  • Pound -Indian Rupee spot rate

Answer :USD-Indian Rupee spot rate

JAIIB - Principles and Practices of Banking Mock Tests Set 18

Under the rating system called CAMELS, the term `M' stands for which of the following:


Options are :

  • management of assets and liabilities
  • management of nonperforming assets
  • management of human resources
  • management effectiveness, e management policies

Answer :management effectiveness, e management policies

The letter C in the rating model CAMELS being used by RBI for rating Public Sector Banks represents:


Options are :

  • Capital fund
  • Capital adequacy
  • Capital contributed to subsidiaries
  • b & c

Answer :Capital adequacy

In which topology, breakdown of one station can disable the entire LAN?


Options are :

  • Star
  • Bus
  • Ring
  • None of these

Answer :Ring

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Various techniques like brainstorming sessions, surveys for need/idea identification, suggestion  scheme for staff are used during ...... 


Options are :

  • Idea screening
  • Commercial launch
  • Product Development
  • Concept testing

Answer :Idea screening

For  a  loan  to  be  raised  in  case  of  need,  a  person  assigns  his  insurance  policy  in  favour  of  the bank. Such relationship of the customer with the bank, will be of a/an:


Options are :

  • Pledger and pledgee
  • Beneficiary and trustee
  • Lender and borrower
  • Assignor and assignee

Answer :Assignor and assignee

A garnishee order is applicable to


Options are :

  • Demand deposits
  • Time deposits subject to maturity
  • Recurring Deposit
  • All the above

Answer :All the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Pricing is significant for firms because 


Options are :

  • It determines revenues generated by the firms
  • It determines profits earned by the firms
  • It affects the level of funds available for other element of marketing mix
  • All of the above

Answer :All of the above

The credit institutions are required to update the credit information on a regular basis at least on basis, to provide the information to Credit Information Companies:


Options are :

  • Monthly
  • quarterly
  • Half-yearly
  • Yearly

Answer :Monthly

When Repo rate is reduced by RBI, it leads to : 


Options are :

  • reduction of cost to borrowers on bank loans
  • increase in cost of loans to borrowers from banks
  • reduced cost of borrowing by banksfrom RBI
  • increased cost of borrowing by banks from RBI

Answer :reduced cost of borrowing by banksfrom RBI

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Example of Duplex mode of communication is ...... 


Options are :

  • Radio broadcast
  • walkie talkie
  • Four-wire modems
  • All of the above

Answer :Four-wire modems

Registered office of M/s XYZ Ltd Co. is at New Delhi. This company wants to enter into an MOU with  a  Chennai based  Company. Managing Director  of M/s  XYZ  Co  Ltd will  be  visiting  Chennai next month in this respect. What will you suggest him regarding Common Seal? 


Options are :

  • To carry original common seal to Chennai
  • To carry facsimile of the Common Seal to Chennai
  • Either a or b
  • Neither a nor b

Answer :To carry original common seal to Chennai

Book debts can be financed by ...... 


Options are :

  • Factoring
  • Forfeiting
  • Both a and b
  • None of these

Answer :Both a and b

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

When RBI offers liquidity adjustment facility to banks this leads to (a) improvement in the liquidity position of banks (b) increase in their capacity to lend (c) increase in their deposits (d) improvement in income of banks by more lending 


Options are :

  • a to d all,
  • b and c
  • b and d
  • c and d

Answer :b and d

What is the objective of securitization of financial assets?


Options are :

  • to enable the banks in speedy recovery of bad loans,
  • to sell the securities without intervention of the court, only if loan gots bad
  • to acquire assets and then sell the same at profit
  • recycling of funds and reduce concentration risk
  • a to d all

Answer :to acquire assets and then sell the same at profit

A  collaborative  network  that  uses  Internet  Technology  to  link  business  with  their  suppliers  is ...... 


Options are :

  • Internet
  • Intranet
  • Extranet
  • WAN

Answer :Extranet

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Cash flow statements deals with ...... 


Options are :

  • cash funds
  • non-cash funds
  • both a and b
  • None of these

Answer :both a and b

Your  bank  receives  a  cheque  in  inward  clearing  which    has  not  been  signed  by  the  account holder. Which one of the following reasons you will select to return the cheque? 


Options are :

  • Cheque is not signed by the payee
  • Refer to the drawer
  • Cheque is not signed by the drawee
  • Cheque is not signed by the endorsee

Answer :Refer to the drawer

No person other than a bank is authorized to accept deposits in India, that are with draw able by ________ as per provisions of Section ______ of ______ Act: 


Options are :

  • Cheque, 26A, Banking regulation Act
  • Cheque, 49A, Banking Regulation Act
  • Withdrawal, 49A, RBI Act
  • Cheque, 26A, RBI Act

Answer :Cheque, 49A, Banking Regulation Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

When  colour  TVs  were  introduced  in  India  for  the  first  time,  the  manufacturers  priced  them very  high.  After  the  initial enthusiasm  waned,  they  reduced  the  price.  This  type  of  pricing  is called ...... 


Options are :

  • Price skimming
  • Market skimming
  • Exploitation pricing
  • a & c

Answer :Market skimming

BCSBI is setup on the Recommendations of which Committee 


Options are :

  • S.S. Tarapore Committee
  • Dr. c.Rangarajan Committee
  • Vijay Kelkar Committee
  • Montek Singh Ahluwalia Committee

Answer :S.S. Tarapore Committee

Based on Nature of Transaction, markets can be grouped into ......


Options are :

  • Real Estate Market
  • Regional Market
  • Cash/Spot Market
  • Wholesale Market

Answer :Cash/Spot Market

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Though  "Pizza  huts"  are  located  in  posh,  air-conditioned  premises,  they  continue  call  themselves as "Pizza huts". This is to take advantage of ...... 


Options are :

  • Local sentiment of wanting to eat in huts
  • Brand value
  • Brand recognition
  • Brand extension

Answer :Brand recognition

Which is not one of a main stage in the process of product development? 


Options are :

  • Idea screening
  • Commercial launch
  • Product testing
  • Concept testing

Answer :Product testing

Capital market is a market for: 


Options are :

  • Equity shares and short term loans
  • Term loans and debentures
  • Long term debt and equity shares
  • All the above

Answer :Long term debt and equity shares

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Every banking companies uses the words ‘bank, banking or banker’ as part of its name as per provisions of section _______ of _______ Act: 


Options are :

  • 5, Banking regulation Act
  • 7, NI Act
  • 7, Banking Regulation Act
  • 7, RBI Act

Answer :7, Banking Regulation Act

A is having a locker and sends the key by post with an intention to surrender the locker: 


Options are :

  • bank will be discharged of its liability, if key is accompanied by a letter stating the contents of the lockers as NIL
  • The bank will not be discharged of its liability
  • The bank should not accept
  • bank can accept subject to its rights under reserve

Answer :bank will be discharged of its liability, if key is accompanied by a letter stating the contents of the lockers as NIL

An  export  client  M/s  Shanbeg  Exports  of  your  branch  receives  an  export  order  for  export  of  handicraft items to US under a letter of credit of $ 30000. It is stated that your bank can issue  another  credit in favour of local supplier/manufacturer from whom the exporter  is to procure  the material. Under which of the following categories, such letter of credit can be classified ...... 


Options are :

  • red clause letter of credit
  • green clause letter of credit
  • transferable letter of credit
  • back to back letter of credit

Answer :back to back letter of credit

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

A bearer cheque is issued by one Mr. Ashok in favour of Aman, but he forgets to hand over the cheque  to  Aman.  Aman however, picks up  the  cheque in his  absence  from  his table.  Whether  the negotiation has taken place? 


Options are :

  • No, endorsement is also needed
  • No, delivery is also needed
  • No, endorsement and delivery both required
  • Yes, the cheque is drawn in his favour

Answer :No, delivery is also needed

If NPA is purchased from X bank by Y Bank and Y bank wants to sell it to Z bank, what is the time period for which the account should remain with bank Y ...... 


Options are :

  • 6 months
  • 12 months
  • 15 months
  • 18 months

Answer :6 months

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