JAIIB - Principles and Practices of Banking Mock Tests Set 18

Banks in India are allowed to undertake trending in the following u/s 6(1) of banking regulation Act:


Options are :

  • Buying of goods
  • Selling of goods
  • Bartering of movable assests
  • Sale of securities

Answer :Sale of securities

JAIIB - Principles and Practices of Banking Mock Tests Set 19

A bond giving the investor the option to get the value of bond equal to an equity share, at  a pre-detetmined exchange price, is called


Options are :

  • Coupan bonds
  • Convertible bonds
  • Commercial paper
  • Zero coupan bonds

Answer :Convertible bonds

A bearer cheque of Rs. 3  lac has been presented by Mr. Sham Kumar, the payees of a cheque drawn on your branch. He being new to the bank has shown inability to give identification ...... 


Options are :

  • In case of bearer cheque, no identification is needed irrespective of the amount of the cheque
  • Identification is required to safe guard the interest of the bank
  • Identification is essential for all instruments for getting protection
  • Identification would not be required if presented with pass book

Answer :In case of bearer cheque, no identification is needed irrespective of the amount of the cheque

Mr. Dharmvir has given a power of attorney to Mr. Ashok Kumar for operation of accounts and dealing with negotiable instruments drawn in favour of Mr. Dharmvir. What will be the correct endorsement by Mr. Ashok Kumar among the following ......  


Options are :

  • Dharmvir sd/ by Ashok Kumar
  • Ashok Kumar sd/ Ashok Kumar
  • For Dharmvir sd/Dharmvir by Ashok Kumar
  • For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)

Answer :For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Banking Regulation Act deals with (a) the regulation of business of banking companies (b) control over management of the banking companies (c) suspension and winding up of banking business (d) penalities for violation of provision of B R Act


Options are :

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

Answer :a to d all

Reserve bank of India has been constituted u/s ___ of RBI Act for (a) taking over the management of currency from the central Govt. (b) for carrying on the business of banking for general public (c) keeping reserves for ensuring the monetary stability: 


Options are :

  • 1, a to c all
  • 3, a and b only
  • 3, a and c only
  • 1, a and c only

Answer :3, a and c only

Which of the following is not the common objective pursued by firms for short term? 


Options are :

  • Profit optimization
  • Profit maximization
  • Minimum return on sales turnover
  • Fast turnaround or early cash recovery

Answer :Profit optimization

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Which one is among the various techniques used for generation of ideas? 


Options are :

  • brainstorming sessions
  • surveys for need/idea identification
  • suggestion scheme for staff
  • All the above

Answer :All the above

RBI undertakes banking business for Central Govt. u/s ________ of RBI Act. For State Govt., the banking business is done by RBI u/s 21A of _________ based on agreement:


Options are :

  • 20, RBI Act
  • 21A, RBI Act
  • 20, B R Act
  • 21A, B R Act

Answer :20, RBI Act

A bank can hold as mortgagee, pledgee or absolute owner of shares of a company, maximum to the extent of:


Options are :

  • 30% of paid up capital of the bank and 30% of paid-up capital of the company, whichever is lower
  • 30% of paid up capital of the bank and 30% of paid-up capital of the company, whichever is higher
  • 30% of paid up capital of the bank and 30% of paid-up capital of the company, whichever is higher
  • 30% of paid up capital + reserves of the bank and 30% of paid up capital of the company, whichever is lower

Answer :30% of paid up capital of the bank and 30% of paid-up capital of the company, whichever is higher

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

A market plan is ...... 


Options are :

  • performance appraisal of the marketing staff
  • company prospectus
  • documented marketing strategy
  • business targets

Answer :documented marketing strategy

Cross-selling is not effective for which one of the following products?  


Options are :

  • Debit Cards
  • Savings Accounts
  • Internet Banking
  • Pension loans

Answer :Savings Accounts

If a cheque is accidentally torn by the drawer, the cheque ...... 


Options are :

  • can't be paid
  • can be paid, if the drawer confirms the multilation
  • can be paid, if the drawer confirms the multilation and if otherwise in order
  • can't be paid, even if the drawer confirms the multilation and otherwise in order

Answer :can be paid, if the drawer confirms the multilation and if otherwise in order

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Banks undertake to pay electricity bills, insurance premium for the customer regularly. Here the bank is a ...... 


Options are :

  • Debtor
  • Creditor
  • Principle
  • Agent

Answer :Agent

Banks obligation to pay the cheque drawn by the customer u/s 31 of NI Act exists, in  which of the following circumstances: 


Options are :

  • When the cheque is presents by the drawer after business hours
  • When the cheque is reported to be lost and confirmation from drawer is still awaited.
  • When garnishee order has been received, cheque through clearing is debited but clearing returning time has not lapsed
  • When cheque dated June 31, 2007 is presented on June 30, 2007

Answer :When garnishee order has been received, cheque through clearing is debited but clearing returning time has not lapsed

Under which of the following provisions of law, the disclosure of customers account information is allowed (which one is not correct): 


Options are :

  • Section 131 and 133 of Income Tax Act
  • Section 26 of RBI Act
  • Section 235 and 237 of Companies Act
  • Section 41 of NI Act

Answer :Section 41 of NI Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Digital signature has ...... 


Options are :

  • Public Key
  • Private Key
  • Both A and B
  • None of the above

Answer :Both A and B

Hypothecation is applicable in the case of ...... 


Options are :

  • Movable goods
  • Immovable property
  • Book debts
  • Corporate guarantee

Answer :Movable goods

Charge created on LIC Policy is ...... 


Options are :

  • Hypothecation
  • Pledge
  • Assignment
  • Mortgage

Answer :Assignment

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

A customer came to a bank branch and he forgot a packet containing some govt. securities for which he intended to raise a loan, which he proposes to get sanctioned next week. The relationship between bank and the party is that of:


Options are :

  • Agent and principal
  • Creditor and dedtor
  • Trustee and beneficiary
  • Bailee and bailor

Answer :Trustee and beneficiary

Group insurance is a plan of insurance which provides life cover to a no. of persons under a single policy called ______ policy:


Options are :

  • Master policy
  • Keyman policy
  • Loss Protection policy
  • Umberrima fides

Answer :Master policy

Which of the following is not an important features of a power of attorney: 


Options are :

  • It is generally executed in the presence ofa notary public
  • It can be registered if desired, with registrar of Companies
  • It requires to be stamped as per State prescribed stamp duty
  • It can be general or specific

Answer :It can be registered if desired, with registrar of Companies

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

A negotiable instrument is endorsed as Pay to Raju only. This is called as ......  


Options are :

  • Blank endorsement
  • Restrictive endorsement
  • Sans recourse endorsement
  • Endorsement in Full

Answer :Restrictive endorsement

Banks have to limit their commitment  by way of unsecured guarantees in such a manner that ...... % of the Bank's outstanding unsecured guarantees plus the total of outstanding unsecured advances do not exceed ...... % of total outstanding advances.


Options are :

  • 10%, 15%
  • 15%, 20%
  • 15%, 40%
  • None of these as there is no such stipulation

Answer :None of these as there is no such stipulation

Mr. Ajay has been appointed an agent by agent by an importer Mr. Shanti Prakash to handle the goods at port and dispose off the same within a price range fixed by Mr. Shanti Prakash. But Mr. Ajay sells the goods at a price lower than the one indicated by Mr. Shanti Prakash. When this fact comes to the notice of Mr. Shanti prakash he cancels the sale contract. The payment is still to be received 


Options are :

  • Mr. Shanti Prakash has the right to do so since his direction has not been carried the agent
  • Mr. Shanti prakash has the right to do so since the payments is yet to be received
  • Mr. Shanti Prakash has to honour the contract made by the agent as he cannot cancel it
  • Mr. Shanti Prakash can claim damages from the agent
  • C and d above

Answer :C and d above

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Your branch has received a garnishee order in the name of your customer having saving bank account, with following transactions. which among these is not subject matter of the garnishee order: 


Options are :

  • An advice ready for dispatch to another branch after debit to the account in payment of cheque
  • An advice received for a cheque which was sent in collection, from another branch but not credited to the account so far
  • A cheque in clearing, the amount of which has been credited to the account
  • An amount of Rs.4000 relating to his wifes account credited by midtake to the account of the customer

Answer :A cheque in clearing, the amount of which has been credited to the account

As per RBI, for borrowers availing working capital credit facilities of Rs 10 crore and above from the banking system, the loan component should normally be ...... % and cash credit component should be ...... %. 


Options are :

  • 80%, 20%
  • 20%, 80%
  • 75%, 25%
  • 60%, 40%

Answer :80%, 20%

As  per  Section  20A  of  the  Banking  Regulation  Act,  1949,  whose  permission  is  required  for remitting  in  whole  or  in  part  any  debt due  to  a  bank  by  any  of the directors,  or  any  firm  or company  in  which  any  of  its  directors  is  interested  as  director,  partner, managing  agent  or guarantor, or any individual, if any of its directors is his partner or guarantor.  


Options are :

  • Reserve Bank
  • Board of Directors of the Bank
  • SEBI
  • None of these as loan given to a director cannot be remitted at all.

Answer :Reserve Bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

FIMMDA stands for:  


Options are :

  • Foreign Exchange Money Markets and Derivatives Association of India
  • Fixed Income Money Markets and Derivatives Association of India
  • Foreign Income Money Markets and Derivatives Association of India
  • None of the above

Answer :Fixed Income Money Markets and Derivatives Association of India

Bank-b gets a cheque from its customer x. In the name of the payee. The words pay to Mr. X account No.3252 0001 0081 3409 Bank A  is stared. It does not bear two parallel lines on its face: 


Options are :

  • The cheque can be collected by Bank-B for its customer
  • The cheque is an uncrossed cheque and its payment can be pbtained by Mr. X across the counter from the drawee bank
  • It is a specially crossed cheque and its payment can be obtained by Bank A only
  • It is a cheque crossed in favour of two banks. Hence none of the banks can obtain its payment

Answer :It is a specially crossed cheque and its payment can be obtained by Bank A only

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