JAIIB - Principles and Practices of Banking Mock Tests Set 2

To extend loan against gold ornaments, the valuation is to be done on the basis of:


Options are :

  • closing price of gold on that day
  • average closing price for 30 days of 22 carat gold
  • closing price of 24 carat gold on that day
  • at bank discretion

Answer :average closing price for 30 days of 22 carat gold

JAIIB - Principles and Practices of Banking Mock Tests Set 20

Land Development Banks provide long term credit for schemes of basic importance to agriculture as:       


Options are :

  • Minor irrigation purposes
  • Mechanization of farms
  • Land reclamation, soil conservation, plantation of fruit orchards, dairy development etc
  • All of the above
  • None of the above

Answer :All of the above

What are major functions undertaken by merchant bankers?      


Options are :

  • Issue Management
  • Capital structuring/ restructuring
  • Market maker in capital market
  • All of the above
  • None of the above

Answer :Market maker in capital market

Which of the following is not the function of a merchant banker?       


Options are :

  • Collection of bills and cheques
  • Issue Management
  • Preparation of project reports
  • Syndication of loans

Answer :Collection of bills and cheques

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Which of the following commodities are covered under the RBI's restrictions,,under selective credit control:


Options are :

  • wheat and pulses
  • buffer stocks of sugar with sugar mills
  • imported oil and oil seeds
  • course grains

Answer :buffer stocks of sugar with sugar mills

As per RBI regulatory guidelines (a) no loan can be allowed against partly paid shares (b) no loan can be granted to a partnership or proprietary firm against primary security of shares/debentures (c) these loans can be granted with prior approval of Board of Banks.


Options are :

  • a to c all correct
  • a and b only correct,
  • a and c are correct
  • b and c are correct

Answer :a and b only correct,

Which is the apex institution accredited with all matters concerning policy, planning and operation in the field of credit for agriculture and other economic activities in rural area?       


Options are :

  • NABARD
  • SIDBI
  • IFCI
  • Regional Rural Bank
  • None of these.

Answer :NABARD

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

The capital of NABARD is held by:       


Options are :

  • Reserve Bank of India and the Government of India in equal proportion
  • State Bank of India and nationalised banks
  • Central Government and State Government
  • Reserve Bank of India and Regional Rural Banks
  • All of the above

Answer :Reserve Bank of India and the Government of India in equal proportion

NABARD has been established on the recommendation of:      


Options are :

  • Talwar Committee
  • Tandon Committee
  • CRAFI CARD
  • James Raj Committee
  • None of the above

Answer :CRAFI CARD

What are the major activities of NABARD?       


Options are :

  • It provides refinance to State Co-operative Banks, Schedule Commercial Bank and Regional Rural Banks etc.
  • It co-ordinates the activities of different agencies in the field of agriculture and rural credit.
  • It improves absorptive capacity of credit delivery system
  • All of the above
  • None of the above

Answer :It improves absorptive capacity of credit delivery system

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Which of the following is not an advantage of the multi-user computer system through networking :


Options are :

  • Corporate level information is available at one place
  • Costly hardware cannot be shared between various user due to which it is not effective
  • Information can be shared easily between various users
  • Computing resources can be used economically by processing the high volume data ective credit control:

Answer :Costly hardware cannot be shared between various user due to which it is not effective

Which of the following features do not match in case of goods and services, as a product: 


Options are :

  • Goods are search products services are experienced products
  • Goods and services are tangible
  • Goods relate to a stage prior to purchase of use
  • Services are the products that relate to a stage after buying or consuming

Answer :Goods and services are tangible

The Banking Companies Act, 1949 was enacted to consolidate and amend the law relating to banking companies w.e.f. 1st March 1966, the name of the Act has been changed as:       


Options are :

  • Negotiable instruments Act
  • Reserve Bank of India Act
  • The Banking and Transfer of Undertaking Act
  • The Banking Regulation Act
  • None of the above.

Answer :The Banking Regulation Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Banks can issue guarantees favouring other lending institutions in respect of infrastructure projects,where the bank takes a funded share in the project at least to the extent of_ % of the project cost :


Options are :

  • 5%
  • 10%
  • 15%
  • 20%

Answer :5%

Banks can issue guarantees favouring other lending institutions in normal projects, where the bank takes a funded share in the project at least to the extent of % of the project cost


Options are :

  • 5%
  • 10%
  • 15%
  • 20%

Answer :10%

As per Sec.6 of the BR Act, a banking can undertake:      


Options are :

  • Merchant banking
  • Issue of guarantee and indemnity
  • Executor and trustee business
  • All of the above
  • None of the above

Answer :All of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Banks can grant loans to which of the following (a) against bullion and primary gold (b), silver bullion dealers (c) hall-marked golden jewellery:


Options are :

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

Answer :c only

In case of information technology and software development industry, the loans up to Rs.2 cr can be sanctioned as per: 


Options are :

  • MPBF method of Tandon Committee
  • Turnover method of Nayak Committee
  • Cash budget method
  • Any of the above

Answer :Turnover method of Nayak Committee

At the time of granting fresh facilities, banks are required to :


Options are :

  • obtain declaration from the borrowers about the credit facilities already enjoyed by them from other branches of the same bank
  • obtain declaration from the borrowers about the credit facilities already enjoyed by them from branches of other banks
  • obtain declaration from the borrowers about the credit facilities already enjoyed by them from outside India
  • All the above

Answer :obtain declaration from the borrowers about the credit facilities already enjoyed by them from branches of other banks

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Under Sec 20 of BR Act, a bank is prohibited from granting any loan or advance to:       


Options are :

  • Any of its directors
  • Any firm (s) in which directors are interested as partner, manager etc
  • Any company in which a director is interested as director manger etc
  • All of the above
  • None of the above

Answer :All of the above

S. 17 of the BR Act lays down that banks shall create a reserve fund out of the balance of profit of each year, also before the declaration of dividend a certain percentage of such profit should be transferred to the reserve fund. This percentage is:      


Options are :

  • 10% of such profit
  • 20% of such profit.
  • 15 % of such profit.
  • None of the above.

Answer :20% of such profit.

Without the approval of the RBI, a bank can not declare dividend in excess of:       


Options are :

  • 10%
  • 15%
  • 20%

Answer :15%

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Sec. 20 of the BR Act prohibits a bank from granting any advance against the the security of:       


Options are :

  • Its own shares.
  • Partly paid shares
  • Personal guarantee of its directors, manager
  • None of the above

Answer :Its own shares.

In 1992 RBI had appointed a committee to make recommendation to tone up the working of the Urban Co-operative Banks. The name of the committee was:       


Options are :

  • Marathe Committee
  • Narsimham Committee
  • Tondon committee
  • Talwar Committee
  • None of the above

Answer :Marathe Committee

Regional Rural Banks were established pursuant to the recommendations of:      


Options are :

  • Narsimham Committee
  • Kelkar Committee
  • Khusro Committee
  • Marathe Committee

Answer :Narsimham Committee

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Banks can reset the interest rates under Marginal Cost of Funds based Lending Rate (MCLR) system, for which the periodicity can be: 


Options are :

  • one year or lower
  • 6 months or lower
  • 3 months or lower
  • 1 months or lower

Answer :one year or lower

The working of RRBs was reviewed in 1986 and their continuance and greater involvement of the sponsor bank in their management was recommended by:       


Options are :

  • Narsimham Committee
  • Kelkar Committee
  • Khusro Committee
  • Marathe Committee
  • All of the above

Answer :Marathe Committee

The objectives of setting up SIDBI are :      


Options are :

  • To initiate steps for technological up gradation and modernization of existing units
  • To promote employment-oriented industries in semi-urban areas and to check migration of population to big cities.
  • To expand channels for marketing of SSI sector products in India and abroad
  • All of the above

Answer :All of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

A customer of the bank has written a will and he has died. The execution of this will be carried by: 


Options are :

  • Administrator
  • Assignee
  • Liquidator
  • None of the above

Answer :None of the above

Which of the following statements can be considered to be true: 


Options are :

  • Memorandum of Association of a company is called document of Indoor management as it contains internal rules of the company
  • Trustee can rise loan for the trust at their discretion
  • Objects of a company are stated in Articles of Association
  • A person appointed by a court to manage the property of a deceased person is called 'administrator'

Answer :A person appointed by a court to manage the property of a deceased person is called 'administrator'

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