JAIIB - Principles and Practices of Banking Mock Tests Set 23

The contract notes that are issued by Foreign Institutional Investors (FIls) to their clients (not registered with SEBI), investing in Indian stock market:


Options are :

  • depository receipt
  • derivative
  • option
  • participatory notes

Answer :participatory notes

JAIIB - Principles and Practices of Banking Mock Tests Set 3

A is a type of transferable financial instrument traded on a local stock exchange of a country but represents a security issued by a foreign publicly listed company:


Options are :

  • depository receipt
  • derivative
  • option
  • participatory notes

Answer :depository receipt

All the sales practically become cash sale to the seller in respect of :


Options are :

  • Leasing
  • Acceptance credit
  • Factoring
  • Buyer's credit

Answer :Factoring

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


Options are :

  • securitization
  • factoring
  • bills discounting
  • forfeiting

Answer :factoring

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Normally what type of movement is seen in interest rate with change in bank rate by RBI: 


Options are :

  • if bank rate is reduced, interest rate of Banks increase
  • if bank rate is increased, interest rate of Banks decrease
  • if bank rate is reduced, interest rate of Banks decrease
  • if bank rate is reduced or increased, there is no change in the interest rate of Banks

Answer :if bank rate is reduced, interest rate of Banks decrease

An award by banking ombudsman will contain;


Options are :

  • specific performance of operations
  • loss / cost to be borne by the bank
  • reasons for making the award
  • all the above

Answer :all the above

Expand IFTP ...  


Options are :

  • Inter-bank funds transfer processor
  • Inter-bank funds transfer protocol
  • Inter-bank file transfer protocol
  • International file transfer protocol

Answer :Inter-bank funds transfer processor

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

An entity established or incorporated outside India which proposes to make investment in India and which is registered as such, in accordance with the SEBI Regulations is called:


Options are :

  • Indian Depository Receipt
  • Foreign Institutional Investor
  • Foreign Direct Investment
  • Foreign Currency
  • Convertible Bond

Answer :Foreign Institutional Investor

Market provides a platform for trading of existing securities and price discovery there of:


Options are :

  • primary market
  • secondary market
  • money market
  • insurance market

Answer :secondary market

Red Herring Prospectus is issued by a for 


Options are :

  • company, to raise funds through commercial paper
  • company, to raise funds from bank for a long term project
  • company, to raise capital from market under book building process in which the price of the share is not disclosed
  • bank, to raise funds from the overseas lenders.

Answer :company, to raise capital from market under book building process in which the price of the share is not disclosed

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

What is an Indian Depository Receipt?


Options are :

  • deposit account with a public sector bank
  • A depository account with any of Depositories in India
  • An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
  • An instrument in the form of deposit receipt issued by Indian depositories

Answer :An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

‘A’ maintaining a SB A/c is reported missing for more than a year. Balance in his account is Rs 1 lakh. Which of the following is true regarding settlement of claim in this case? 


Options are :

  • Claim can be settled only after a lapse of 7 years
  • Claim can be settled after obtaining FIR, Non-traceable report issued by the police authorities & Indemnity from the claimant as per discretionary power of Branch Manager
  • Claim can be settled after obtaining FIR, Non-traceable report issued by the police authorities & Indemnity from the claimant by AGM (Admin) of the respective region
  • All are true

Answer :Claim can be settled after obtaining FIR, Non-traceable report issued by the police authorities & Indemnity from the claimant by AGM (Admin) of the respective region

Which of the following methods can be conveniently used for providing finance to infrastructure projects:


Options are :

  • Securitization
  • Factoring
  • Credit syndication
  • Consortium financing
  • Take out financing

Answer :Take out financing

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Narrow money is the term in monetary aggregates which is represented by: 


Options are :

  • M 1
  • M 2
  • M 3
  • M 4

Answer :M 1

What is meant by the term reverse REPO out of the following:


Options are :

  • injecting liquidity by the Central Bank of a country through purchase of govt. securities,
  • absorption of liquidity from the market by sale of govt. securities
  • Balancing liquidity with a view to enhance economic growth rate
  • Improving the position of availability of the securities in the market

Answer :absorption of liquidity from the market by sale of govt. securities

When an unlisted company issues fresh securities for the first time, it is called: 


Options are :

  • initial public offering
  • rights issue
  • follow-on public offering
  • bonus shares

Answer :initial public offering

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

In a gilt fund, the mutual funds make investment in: 


Options are :

  • Govt. securities
  • Corporate securities
  • Corporate debt
  • Govt. and corporate debt

Answer :Govt. securities

Bank B made payment of a cheque with following endorsements. In which of these cases the payment will not be deemed to be a payment in due course: 


Options are :

  • Endorsement by X the payee, in favour of Mr. Y and the cheque has not negotiable crossing
  • Endorsement by X, to Y, Y to Z and Z to A
  • Endorsement by Renu wife of Mr. Sunil Kumar, while the cheque is in favour of Mrs. Sunil Kumar
  • Endorsement by X the payee in favour of Mr. Y while the cheque is having payee’s account crossing

Answer :Endorsement by X the payee in favour of Mr. Y while the cheque is having payee’s account crossing

The risk that loss may arise on account of trading in SLR and other securities by a bank is classified as:


Options are :

  • credit risk
  • investment fluctuation risk
  • trading risk
  • operational risk
  • market risk

Answer :market risk

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

The risk that the interest rate of different assets and liabilities may change in dif ferent magnitude is called ? 


Options are :

  • Embedded Risk
  • Maturity Risk
  • Basis Risk
  • Price Risk

Answer :Basis Risk

Exposure to uncertainty in economic value o f an investment that could not be marked to market is called:


Options are :

  • trading risk
  • business risk
  • market risk
  • liquidity risk
  • investment risk

Answer :business risk

A foreign exchange dealer forgets to square the over bought position in a foreign currency. It is a..


Options are :

  • foreign exchange risk
  • settlement risk
  • liquidity risk
  • operational risk

Answer :operational risk

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Risk that is associated with failure of internal processes of a bank or business organization:


Options are :

  • settlement risk
  • procedural risk
  • operational risk
  • credit risk

Answer :operational risk

A bank has failed to meet its obligation on account of a payment on due date due to its incapacity to pay. What kind of risk it is:


Options are :

  • credit risk
  • liquidity risk
  • settlement risk
  • payment risk
  • all the above

Answer :settlement risk

Risk associated with changes in the credit profile of the borrowers and counter parties, is called:


Options are :

  • credit risk
  • market risk
  • counter-party risk
  • liquidity risk
  • a and b –above

Answer :credit risk

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Bank’s Assets are classified into standard, substandard, doubtful and loss assets, based on the recommendations of ......... Committee 


Options are :

  • Rangarajan
  • Narasimham
  • Ghosh
  • Tandon

Answer :Narasimham

In which of the following situations, the bank can favorably accommodate the customer: 


Options are :

  • Mr. Suresh, a valued customer comes to obtain payment of a cheque drawn in his favour and crossed by him, by mistake and now demands cash payment
  • Mr. Phadke, comes with a cheque in favour of his wife and crossed account payee, for credit to his account. his wife has endorsed the cheque in his favour
  • A cheque dated June 12,2004 is presented for payment on dec 12,2004 as Dec 11,2004 was a Sunday
  • A cheque in which date, amount and payee’s name is left blank by the drawer and is completed by Mr. Dinesh, who demands its payment

Answer :A cheque in which date, amount and payee’s name is left blank by the drawer and is completed by Mr. Dinesh, who demands its payment

Obtaining introduction from the existing customer for opening a new deposit account is essential (a) to get protection u/s 131 of NI Act against conversion (b) to prevent money laundering (c) to comply with KYC directives of RBI 


Options are :

  • None of the above
  • A and b only
  • B and c only
  • A and c only

Answer :None of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Satellite is fitted with transmitters and receiving antennas called ...... 


Options are :

  • Transmiters
  • Transponders
  • Receivers
  • Both a & c

Answer :Transponders

B  is  payee  of  a  cheque,  who  endorses  it  to  c.C  lost  the  cheque  which  is  found  by  D,  who endorses it in favour of A for valuable consideration by way of forging C’ signatures. The cheque is dishonoured. A can recover from: 


Options are :

  • B
  • C
  • D
  • any of the previous parties

Answer :D

Which is not correct with regard to Selling? 


Options are :

  • Focus is on the products
  • Marketing is a broader concept than selling
  • Profit maximises with customer satisfaction
  • Profit maximises with increase in volume

Answer :Profit maximises with customer satisfaction

JAIIB Accounting and Finance for Bankers Mock Tests Set 4

The customer service in a bank branch, has been disrupted for 2 hours, due to failure of the central server. What type of risk it is:


Options are :

  • reputation risk
  • systemic risk
  • operational risk
  • settlement risk

Answer :operational risk

When the bank is selling 3rd party products, which type of risk is involved:- 


Options are :

  • reputation risk
  • operational risk
  • credit risk
  • liquidity risk
  • Financial Sector Terms

Answer :operational risk

Replacement of relatively high -cost debt with that of lower cost borrowing to take advantage of falling interest rates is called:


Options are :

  • debt replacement
  • derivative
  • credit enhancement
  • credit risk management
  • debt swap

Answer :debt swap

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

In capital market


Options are :

  • The term 'Market cap' is the product of a market price authorized capital
  • market price x paid up capital
  • market price x outstanding no. of shares
  • market price x shares
  • b and d

Answer :market price x outstanding no. of shares

Holidays are declared to the banks under 


Options are :

  • RBI Act
  • Banking Regulation Act
  • Negotiable Instrument Act
  • Indian Contracts Act

Answer :Negotiable Instrument Act

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