JAIIB - Principles and Practices of Banking Mock Tests Set 21

Diversification in which the new products appeal to the existing customers though the products are technologically unrelated to existing product lines is called as ...... 


Options are :

  • Concentric diversification
  • Horizontal diversification
  • Conglomerate diversification
  • None of the above

Answer :Horizontal diversification

JAIIB - Principles and Practices of Banking Mock Tests Set 22

Sameer  issued  a  cheque  at  4:30  p.m.  (one  hour  after  close  of  business  hours  of  the  bank)  to Ranjit.  Ranjit  approached  the  bank and  on  request  got  paid  the  money  at  4:45  p.m.  as  late payment.  Sameer  reached  the  bank  and  stopped  payment  of  cheque  issued  to Ranjit  at  4:50 p.m. on the same day. Who is liable for loss? 


Options are :

  • Payment after business hours is not a payment in due course hence bank is liable, Section 10 N.I. Act.
  • Payment even though after business hours but within banking hours is protected under Section 31
  • Payment late for today is protected under Section 85
  • Refused to accept stop payment instructions since late for today

Answer :Payment after business hours is not a payment in due course hence bank is liable, Section 10 N.I. Act.

To address customer grievances in respect of insurance contract on personal lives, there is an institution called_______: 


Options are :

  • Insurance Ombudsman
  • Insurance regulator
  • Insurance Intermediary
  • Insurance Regulatory and development Authority

Answer :Insurance Ombudsman

Which of the following is not a correct statement in the context of registration of a partnership firm: 


Options are :

  • Provisions for registration of a firm are u/s 58 of Indian Partnership Act
  • Registration of a firm is optional and not compulsory
  • If a firm is not registered, neither it can file suit in its own name, nor anyone else can file suit on this firm
  • If a firm is registered, it can file suit in its own name and suit can be filed on the firm by others, whether registers or unregistered

Answer :If a firm is not registered, neither it can file suit in its own name, nor anyone else can file suit on this firm

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Repayment capacity of a company in case of term loan proposals, is judged by the banks, with which of the following ratios : 


Options are :

  • debt equity ratio
  • internal rate of return
  • net present value
  • debt service coverage ratio

Answer :debt service coverage ratio

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach is % for staff loans secured by superannuation benefits or mortgage of flat / house:


Options are :

  • 20%
  • 50%
  • 75%
  • 100%

Answer :20%

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach is % for staff loans other than secured by superannuation benefits or mortgage of flat / house, being eligible under regulatory retail portfolio:


Options are :

  • 20%
  • 50%
  • 75%
  • 100%

Answer :75%

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Which  type  of  the  following  software  is  not  used  by  a  person  for  preparation  of  text  documents. (i) Data processor (ii) Word processor, (iii) Compiler 


Options are :

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

Answer :Only (i) and (iii)

IDRBT stands for ...... 


Options are :

  • Institute for Development and Research in Banking Technology
  • Institute for Development and Research in Business Technology
  • Institution of Development and Research in Banking Technology
  • Institute for Development of Rural Banking Technology

Answer :Institute for Development and Research in Banking Technology

Vikash wants a demand draft striking the word 'Order' and writing the word 'Bearer'. How can the bank help him?  


Options are :

  • Bearer Draft is unlawful under Section 31 of RBI.
  • Bearer Draft can be issued like a cheque
  • Signature of the payee should be attested on the back of draft by the issuing branch
  • Attestation of the signature of the payee on a separate slip of paper by bank (without striking out the word 'Order' on draft).

Answer :Attestation of the signature of the payee on a separate slip of paper by bank (without striking out the word 'Order' on draft).

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Where a minor is admitted for benefit, in an existing firm (a) he has the authority to become partner on attaining majority (b) he has the right not to become partner on attaining majority (c) if he remains silent regarding whether to be partner of not to be, he is deemed to have not  become partner (d) if he chooses to be a partner his liability begins from date of his becoming  full-fledged partners. 


Options are :

  • A, c and d are correct
  • A, b and d are correct
  • Only a and b are correct
  • Only a and c are correct

Answer :Only a and b are correct

Borrowing powers of the Board of Directors of a company (which is not true):


Options are :

  • Are mentioned in the Articles of Association
  • If not mentioned , in the Articles, it is equal to paid up capital + reserves of the company
  • Where board of directors does not have adequate powers, it has to approach the shareholders u/s 293
  • None of the above

Answer :None of the above

Under Basel III,under standardized approach, the total risk weighted off-balance sheet credit exposure is calculated by taking into account, the credit conversion factor (CCF). In which of the following, the CCF is not correctly stated: - 


Options are :

  • direct credit substitutes such as financial guarantee or standby LC 100%,
  • performance guarantees 50%,
  • self liquidating short term LC covering trading in goods 50%,
  • note issuance facilities and revolving underwriting facilities -50%

Answer :self liquidating short term LC covering trading in goods 50%,

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

The market risk positions, that are subject to capital charge requirement, includes which of the following positions, under Basel III: 


Options are :

  • risk pertaining to interest rate related instruments in the trading book
  • risk pertaining to equities in the trading book
  • forex risk including open positions in precious metal
  • all the above

Answer :all the above

If a security has matured and remains unpaid, it attract capital for risk on completion of 90 days delinquency period: 


Options are :

  • credit risk
  • market risk
  • operational risk
  • at discretion of the bank

Answer :credit risk

Which of the following is not true in respect of Insolvency? 


Options are :

  • A person who cannot pay his debts of Rs 500/- or more may be declared as insolvent
  • Application for declaring a person insolvent can be made by his creditors only
  • An insolvent person cannot act as director of company
  • An insolvent can operate his PPF A/c and a Trust A/c as trustee

Answer :Application for declaring a person insolvent can be made by his creditors only

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Which  of  the  following  is  true  in  case  a  notice  is  received  by  your  branch  that  an  insolvency petition has been filed against or by a customer? 


Options are :

  • Operation in the account should be stopped only when the customer is adjudicated as insolvent
  • Operation in the account should be stopped from date of notice of insolvency petition itself
  • Operation in the account should be stopped only when the Official Receiver requests in writing
  • None of these

Answer :Operation in the account should be stopped from date of notice of insolvency petition itself

Your branch receives a garnishee order. It attaches all sums owning or accruing due to Mr. Ashok and Mr. Anand. There is no account at the branch in the joint names of Mr. Ashok and Anand. But they maintain their individual accounts. Under these circumstances: 


Options are :

  • The court should be advised that there is no account in the joint names of Ashok and Mr. Anand. Hence, the garnishee order can not be given effect to
  • The garnishee order will attach the individual accounts of Mr.Ashok and Mr. Anand as they are jointly and severally liable for the joint debt
  • The matter should be referred to the court for clarification
  • Since the order is not applicable, the bank need not take any action thereon

Answer :The garnishee order will attach the individual accounts of Mr.Ashok and Mr. Anand as they are jointly and severally liable for the joint debt

Which among the following is a false statement: 


Options are :

  • Signature of the payee or endorsee for negotiation of the cheque is called endorsement
  • Endorsement can be only on the back side or separate sheet of paper called allonge
  • A cheque can be endorsed for any number of times
  • Endorsement is possible on bill of exchange, promissory note and cheque

Answer :Endorsement can be only on the back side or separate sheet of paper called allonge

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Which of the following is not true in respect of Joint Hindu Family? 


Options are :

  • It is governed by two schools of Hindu law Dayabhaga & Mitakshara
  • Under Mitakshara, every son/daughter of a coparcener acquire a right in JHF by birth
  • Under Dayabhaga School he/she acquires the right in JHF only after fathers death
  • All members of the family are called coparceners including mother and daughter-in-law

Answer :All members of the family are called coparceners including mother and daughter-in-law

The capital requirement for general market risk is designed under Basel III to capture the risk of loss arising from change in :


Options are :

  • prices of securities
  • market value securities
  • interest rate on securities
  • all the above

Answer :interest rate on securities

Under Basel III, the risk weight for open foreign currency and open gold position is:


Options are :

  • 50%
  • 75%
  • 100%
  • 150%

Answer :100%

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

A bond issued at a discount and repaid at its face value is called, a _______ bonds: 


Options are :

  • Coupon bond
  • Convertible bond
  • Commercial bond
  • Zero coupon bond

Answer :Zero coupon bond

An attachment order of Rs.40000 on a partnership firm is received; whose current account shows a balance of Rs.4000. The individual accounts of the partners A,B and C are showing credit balance of Rs.20000, Rs.17000 and Rs.1250 respectively. To meet the payment stated in the order, how much amount will be payable from As account? 


Options are :

  • Rs.16250
  • Rs.17750
  • Rs.18750
  • Rs.40000
  • Rs.19750

Answer :Rs.17750

Under Basel Ill, the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events is called : 


Options are :

  • credit risk
  • operational risk
  • market risk
  • reputation risk

Answer :operational risk

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

As per Basel III, which of the following is part of operational risk :-


Options are :

  • legal risk
  • reputational risk
  • strategic risk
  • all the above

Answer :legal risk

If there is default of repayment by the buyer in case of factoring and the factor is able to recover the amount from the seller, it is called 


Options are :

  • Non- recourse factoring
  • Without recourse factoring
  • Recourse factoring
  • Bills discounting

Answer :Recourse factoring

Bank-B is maintaining account of a sports club which is operated by its Secretary and President jointly. Bank receives a notice (on Feb 10,2016) of death of the President on Jan 31,2016. Two cheques of Rs.5000 each dated Jan 12, 2016 and dated feb 02, 2016 are presented for payment on Feb 24,2016. The bank shall: 


Options are :

  • Pass both the cheques as these are signed by them in the capacity of an agent
  • Return both the cheques as the death of one of the drawers has taken place
  • Pass the 1st cheque and return the 2nd cheque
  • Pass the 2nd cheque and return the 1st cheque

Answer :Pass the 1st cheque and return the 2nd cheque

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

For the purposeof calculation of capital charge for operational risk under basic indicator approach, the gross income means:- 


Options are :

  • net profit + provisions and contingencies
  • net profit + provisions and contingencies + operating expenses
  • net profit + operating-expenses,
  • provisions and contingencies + operating expenses.

Answer :net profit + provisions and contingencies + operating expenses

Which of the following endorsements match their description: 


Options are :

  • Pay to X Rs.10000 and Y Rs.2000 (the cheque is for Rs.12000)- partial endorsement
  • Pay to X only-restricted endorsement
  • Pay to X when he returns from UK-conditional endorsement
  • Pay to X without my responsibility sans recourse endorsement

Answer :Pay to X Rs.10000 and Y Rs.2000 (the cheque is for Rs.12000)- partial endorsement

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