JAIIB - Principles and Practices of Banking Mock Tests Set 20

Diversification Growth is defined as...... 


Options are :

  • Identify opportunities for further growth within the existing businesses
  • Identify opportunities to build or acquire businesses related to the existing businesses
  • Identify opportunities to add attractive businesses, unrelated to the existing businesses
  • None of the above

Answer :Identify opportunities to add attractive businesses, unrelated to the existing businesses

JAIIB - Principles and Practices of Banking Mock Tests Set 21

Building a brand doesn't involve ...... 


Options are :

  • Brand positioning
  • Brand name selection
  • Brand marketing
  • Brand development

Answer :Brand marketing

Who is the customer among the following? 


Options are :

  • One who acts as an agent for one maintaining a deposit account
  • One who regularly gets Draft issued
  • One who maintains a Loan Account
  • One who regularly visits the bank

Answer :One who maintains a Loan Account

When a cheque is collected by a bank for its customer A who withdraws the money after collection and later on real A establishes that the cheque belonged him (real A) It  is called 


Options are :

  • foreclosure
  • subrogation
  • force majure
  • conversion

Answer :conversion

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Introduction can be accepted for a new customer from (a) an existing customer having satisfactory conduct of account for at least 6 months (b) person like MPs or MLAs (d) another bank (e) as per KYC rules of RBI introduction is not mandatory. 


Options are :

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

Answer :e

The  measurement  and  evaluation  of  progress  against  the  goals  and  targets  of  plans  falls under... 


Options are :

  • Planning
  • Implementation
  • Control and review
  • Analysis

Answer :Control and review

Time limit for settlement of claims in Deceased cases ...... 


Options are :

  • 30 days from the date of death
  • 15 days from the date of death
  • 15 days from the date of submission of all the documents
  • 30 days from the date of submission of all the documents

Answer :15 days from the date of submission of all the documents

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

A  draft  purchased  is  reported  lost  and  the  purchaser  wants  to  stop  the payment  of  the  draft. What should the Bank do? 


Options are :

  • Bank cannot stop payment since it is a promissory note.
  • Bank can stop payment since covered under negotiable instrument
  • Bank can ask the purchaser to suffer for negligence and bank cannot help
  • Bank would issue stop payment instructions only after two weeks from date of issue.

Answer :Bank cannot stop payment since it is a promissory note.

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach for long term loans, does not match for claims on domestic corporates, AFC and NBFC-IFC (based on rating of internal rating agencies such as CRISIL, CARE, ICRA etc.), in respect of which of the following:


Options are :

  • AAA rating — 20%
  • A rating — 50%
  • BBB —100%
  • unrated — 150%

Answer :unrated — 150%

Under Basel III, the risk weight is % for capital charge for credit risk on the basis of standardized approach, for claims included in regulatory retail portfolio: 


Options are :

  • 20%
  • 50%
  • 75%
  • 100%

Answer :75%

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

LAF relates to... 


Options are :

  • Temporary loans to state govt by RBI
  • Short term loans to Banks by RBI
  • Temporary loans to central govt by RBI
  • None of these

Answer :Short term loans to Banks by RBI

Breakdowns in internal controls is an example for 


Options are :

  • Market Risk
  • Operational Risk
  • Credit Risk
  • All of the above

Answer :Operational Risk

Can  Board  of  Directors  of  a  Public  Limited  Company  borrow  in  excess  of  the  aggregate  of  the paid-up capital and its free reserves? 


Options are :

  • Yes, after passing a resolution at a duly convened meeting of the Board
  • Yes, after obtaining consent of the shareholders in its General Meeting
  • No, it is prohibited under Section 293 of Companies Act
  • Yes, Borrowing upto 200% of Paid Up capital & free reserves is permitted under Sec 293

Answer :Yes, after obtaining consent of the shareholders in its General Meeting

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Under Basel III, which of the following is part of the regulatory retail portfolio (1) mortgage loanswhich qualify as claim secured by residential property or commercial real estate (2) consumer credit orpersonal loans or credit card receivables (3) capital market exposure (4) venture capital exposure.


Options are :

  • I and 3 only
  • 2 and 4 only
  • 1 to 4 all
  • none of the above

Answer :none of the above

Under Basel III, to consider a claim as part of regulatory retail portfolio, which of the following condition is stated correctly: (1) orientation criteria i.e. the exposure to individual person or to small business, where total average annual turnover in small business is less than Rs.50 or (2) granularity criteria i.e. no aggregate exposure to one counterpart is more than 02% of overall regulatory retail portfolio (3) maximum retail exposure to one counterpart does not exceed the threshold limit of Rs. 1 cr.


Options are :

  • 1 to 3 all
  • 1 and 2 only
  • I and 3 only
  • 2 and 3 only

Answer :1 and 2 only

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach for home loan up to Rs.20 lac where loan to value (LTV) ratio is 90% is : 


Options are :

  • 20%
  • 50%
  • 75%
  • 100%

Answer :50%

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Treasury Operations is an example for 


Options are :

  • Market Risk
  • Operational Risk
  • Credit Risk
  • All of the above

Answer :Credit Risk

A social and managerial process by which individuals and organizations obtain what they need and want through value creation refers to which one of the following concepts? 


Options are :

  • Selling
  • Advertising
  • Barter
  • Marketing

Answer :Marketing

A cheque drawn for Raj or order is stolen. The thief made endorsement as Raj on the cheque in his favour. The cheque is presented in clearing and paid by bank. True owner later on sent legal notice to bank. What is the liability of the bank? 


Options are :

  • the paying bank will get protection under N.I. Act
  • forgery does not give any rights to bank, hence liable
  • under section 85, the paying bank is liable
  • under section 131, the paying bank is liable

Answer :the paying bank will get protection under N.I. Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Customer keeps certain valuables with the bank for safe-keeping. Here the bank is a ...... 


Options are :

  • Debtor
  • Creditor
  • Trustee
  • Lessee

Answer :Trustee

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach for home loan of above Rs.20 lac up to Rs.75 lac, where loan to value (LTV) ratio is 80% is : 


Options are :

  • 20%
  • 50%
  • 75%
  • 100%

Answer :50%

Under Basel III, the risk weight is for capital charge for credit risk on the basis of standardized approach for commercial real estate — residential housing: 


Options are :

  • 20%
  • 50%
  • 75%
  • 100%

Answer :75%

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

RBI notifies CRR under ...... Act 


Options are :

  • Section 24 of the Banking Regulation Act
  • Section 42 of the Banking Regulation Act
  • Section 24 of the RBI Act
  • Section 42 of the RBI Act

Answer :Section 42 of the RBI Act

The Advance Value on LIC Policy is linked with 


Options are :

  • Face Value
  • Surrender Value
  • Paid Up Value
  • Depending on the Age of the Policy Holder

Answer :Surrender Value

Section  45ZA  to  45ZF  relate  to  Nomination  in  ......  (i)  Deposit,  (ii)  Safe  custody,  (iii)  Locker accounts 


Options are :

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

Answer :(i), (ii) and (iii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

After close of business hours by 3.30 hrs. the account holder himself availed payment. At 4.30 p.m.  income  tax  attachment  order is  received  by  bank.  What  would  be  the  liability  of  paying bank? 


Options are :

  • payment is made in due course and as payment is debitable next day, bank is protected
  • payment is not in due course since paid after reasonable time
  • attachment order will be effective after bank's right of lien over the late payment bank
  • should approach the customer to get the order changed to next day.

Answer :payment is not in due course since paid after reasonable time

Under Basel III, for home loan purpose, the loan to value ratio (LTV) ratio is calculated as :


Options are :

  • (principal + other charges) / (realizable value of mortgage property)
  • (principal + accrued interest + other charges) / (realizable value of mortgage property)
  • (principal + accrued interest) / (realizable value of mortgage property)
  • (principal + accrued interest + other charges) / (cost of mortgage property)

Answer :(principal + accrued interest + other charges) / (realizable value of mortgage property)

As per Basel III implementation, the risk weight for unsecured portion of NPA for credit risk as per standardized approach is % if the specific provision is less than 20% of the outstanding in NPA account: 


Options are :

  • 150%
  • 100%
  • 75%
  • 50%

Answer :150%

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach for which of the following exposure, does not match: 


Options are :

  • venture capital — 150%
  • consumer credit or personal loans— 125%,
  • credit card -125%,
  • capital market exposure 100%

Answer :capital market exposure 100%

What can be a characteristic of Service Products? 


Options are :

  • Transfer of ownership possible
  • Tangible
  • Homogeneous
  • Perishability

Answer :Perishability

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