JAIIB - Principles and Practices of Banking Mock Tests Set 22

The mechanism for pooling resources from the public by issuing units to them and investing the  funds, so collected in securities in accordance with objectives disclosed in an document, is called 


Options are :

  • Public issue
  • Mutual fund
  • Securitization
  • Initial public offering

Answer :Mutual fund

JAIIB - Principles and Practices of Banking Mock Tests Set 23

Which of the following is not true in respect of Common Seal? 


Options are :

  • Common Seal of the Company can only be of metal and not a rubber stamp
  • Fact that it is a common seal & name of the Company should be engraved in it in legible characters in English only
  • Common Seal can be affixed only with the authority of the Board of Directors as provided in AoA
  • Subsequent Board resolution will not validate documents where Common Seal is affixed without Board of Directors Authority

Answer :Fact that it is a common seal & name of the Company should be engraved in it in legible characters in English only

In  case  the  letters  engraved  on  the  Common  Seal  has  defaced,  a  new  seal  can  be  adopted by the Company by ...... 


Options are :

  • Referring to the provisions made in Article of Association
  • Referring to the provisions made in Memorandum of Association
  • Passing a suitable resolution before using the new seal
  • Order of the Managing Director or Secretary

Answer :Passing a suitable resolution before using the new seal

An  audiocassette  manufacturer  enters  into  fax  machines  or  diet  products  businesses  is  an example of 


Options are :

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

Answer :Conglomerate diversification

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

A marketing manager of a large consumer foods company is studying distribution, promotion, and price of the company's product. Marketing manager is studying which one of the following concepts? 


Options are :

  • Marketing plan
  • Marketing strategy
  • Marketing mix
  • Market offering

Answer :Marketing mix

The risks that the banks are generally exposed to and are not captured or not fully captured in regulatory CRAR include which of the following:


Options are :

  • settlement risk, liquidity risk
  • reputational risk, strategic risk
  • risk of under-estimation of credit risk under standardized approach
  • all the above

Answer :all the above

Which of the 'following better explains the meaning of risk :-


Options are :

  • loss arising on happening of some event
  • loss arising on non-happening of some event
  • probability of loss that could arise due to uncertainty
  • probability of risk that could arise due to uncertainty
  • risk due to loss as a result of uncertainty

Answer :probability of loss that could arise due to uncertainty

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Market risk is the risk of loss in (a) on-balance sheet positions (b) off balance sheet positions (c) arising from movement in market prices: 


Options are :

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

Answer :a to c all are correct

Risk that is associated with inability/failure of banks in payment of amount representing clearing cheques presented by different banks:


Options are :

  • liquidity risk
  • settlement risk
  • credit risk
  • legal risk
  • clearing process risk

Answer :settlement risk

The market trading days for Government Securities are from ...... to ...... 


Options are :

  • Monday, Friday
  • Monday, Saturday
  • Monday, Sunday
  • None of the above

Answer :Monday, Friday

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

When a stand-alone system is connected to the existing multi-user systems, they are called as ...... 


Options are :

  • Workstation
  • Server
  • Node
  • Either a or c

Answer :Either a or c

Which of the following is true when Death/ insolvency/ Retirement or Expulsion of any partner takes place in a Partnership firm? 


Options are :

  • Firm is compulsorily dissolved
  • Firm is reconstituted
  • Continuation of the Firm depends upon the provisions made in the Partnership Deed
  • Both b or c

Answer :Both b or c

Rules relating to Common Seal are contained in which of the following? 


Options are :

  • Certification of Incorporation
  • Memorandum of Association
  • Certificate of Commencement of Business
  • Articles of Association

Answer :Articles of Association

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

A bank finds it difficult to repay the short term deposits on maturity to its deposits because the funds of the bank are locked in long term loans or investments. The risk arising from this situation is called:


Options are :

  • Interest rate risk
  • Liquidity risk
  • Operational risk
  • Market risk
  • Credit risk

Answer :Liquidity risk

When failure of the financial system affects other systems such as insurance market or forex market, such risk is:


Options are :

  • liquidity risk
  • settlement risk
  • systemic risk
  • systematic risk
  • clearing process risk

Answer :systemic risk

Market risk takes the form of (which one is not correct): 


Options are :

  • commodity price risk
  • interest rate risk
  • loan default risk
  • liquidity risk

Answer :loan default risk

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

If loan is sanctioned against pledge of stocks, within how many days creation of charge should be filed with Registrar of companies? 


Options are :

  • 30 Days
  • 45 Days
  • 60 Days
  • Registration not required

Answer :Registration not required

The receivables of various loans and obligations are put together and distributed amongst investors through marketable securities, in which of the following: 


Options are :

  • leasing
  • factoring
  • securitization
  • venture capital
  • forfeiting

Answer :securitization

The process in which the electronic holding of share replaces the paper securities: 


Options are :

  • demutualisation
  • rematerialisation
  • electronic shares
  • dematerialsation

Answer :dematerialsation

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

The term 'Green-shoe option' is used in relation to: 


Options are :

  • environment audit
  • 2d green revolution
  • capital mobilized by plantation companies
  • option to retain that portion of the equity that has been subscribed by the public over and above the issued amount
  • option to return the amount of capital that has been received in excess of the issued amount

Answer :option to retain that portion of the equity that has been subscribed by the public over and above the issued amount

Which is a possible approach which can be adopted by a firm, when it faces a situation that the expected sales and profit do not reach the desired levels? 


Options are :

  • Intensive Growth
  • Integrative Growth
  • Diversification Growth
  • All the above

Answer :All the above

The term CBLO in connection with short term market related borrowing, stands for: 


Options are :

  • collateralized banking and lenders' obligation
  • common borrowing and lending obligation
  • collateralized borrowing and lending obligation
  • collateralized borrowing and lending organization

Answer :collateralized borrowing and lending obligation

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

When buying or selling of securities is done by a person having access to privileged information, it is known as? 


Options are :

  • Secular trading
  • Insider trading
  • Over trading
  • Unauthorized trading
  • Any of the above

Answer :Insider trading

In order to obtain cash for its credit sales, the duly accepted domestic sale invoices are assigned by the seller in favour of a 3rdparty. Such purchase of receivables by the 3rd party with or without recourse is called: 


Options are :

  • securitization
  • factoring
  • bills discounting
  • forfeiting
  • any of above

Answer :factoring

Branches of banks distribute to their customers as corporate agents, insurance products of other insurance companies, which is called:


Options are :

  • Underwriting business
  • Bancassurance
  • Referral business
  • Any of the above

Answer :Bancassurance

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

A is a contract where the purchaser of the option has the right but not the obligati on to either purchase or sell and the seller of the option agrees to sell or purchase an agreed amount of a specified currency at a price agreed in advance and denominated in another currency :


Options are :

  • interest rate swap
  • forward rate agreement
  • currency option
  • foreign exchange forward

Answer :currency option

During Mortgage, normally parent documents for ...... years is asked for. 


Options are :

  • 10 years
  • 13 years
  • 20 years
  • 30 years

Answer :30 years

A bank customer ABC, enjoys a CC limit of Rs.300000. The CC account shows a credit balance of Rs.25000. The relationship between the bank and the customer is.


Options are :

  • Debtor/Creditor
  • Creditor/Debtor
  • Bailor/Bailee
  • Bailee/Bailor

Answer :Debtor/Creditor

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

When a company instead of fixing the price of new share, invites bids and allows the market to fix the price of the share, the process is called:


Options are :

  • private placement
  • price search
  • book-building
  • initial public Offering
  • market price fixation

Answer :book-building

In the capital market, the term arbitrages used with reference to which of the following?


Options are :

  • Purchase of securities to cover the sale
  • Sale of securities to reduce the loss on purchase
  • Simultaneous purchase and sale of securities to make profits from price variation in different markets
  • Any of the above

Answer :Simultaneous purchase and sale of securities to make profits from price variation in different markets

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions