JAIIB - Principles and Practices of Banking Mock Tests Set 3

Export-Import Bank of India was set up as a statutory corporation, wholly owned by Govt. of India, in :      


Options are :

  • January 1981.
  • August 1947
  • January 1984.
  • None of these
  • All of the above

Answer :January 1981.

JAIIB - Principles and Practices of Banking Mock Tests Set 4

EXIM Bank meets the needs of various group ; viz., :       


Options are :

  • Indian Exporters
  • Overseas Entities
  • Commercial Banks
  • All of these
  • None of the above

Answer :All of these

Customer is defined as per provisions of: 


Options are :

  • Indian Contract Act
  • Negotiable instrument Act
  • General Clauses Act
  • KYC Guidelines

Answer :KYC Guidelines

Bankís obligation to pay the cheque drawn by the customer u/s 31 if NI act exists, In which of the following circumstances: 


Options are :

  • When the amount in words and figures differs
  • When there is notice of death of the customer
  • When an attachment order has been received
  • When the signatures of the drawer are genuine but differ

Answer :When the amount in words and figures differs

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Unit Trust of India (UTI) was set up under an Act of Parliament in 1964 or Statutory Public Sector Investment Institution. The objectives of the institutions are : 


Options are :

  • To provide to the investors of small and moderate means the same advantages of investments as enjoyed by the large capitalists.
  • To diminish or minimize the risk of investment in stocks by spreading or diversifying investments over a large number of different kinds of stocks.
  • To provide professional management of portfolio.to help the small investors to each the relatively higher rate of return
  • All of the above
  • None of the above.

Answer :All of the above

The activities of Unit Trust of India, inter alia, include :  


Options are :

  • Sale and purchase of units
  • Investment in securities
  • Short term and long term debt financing
  • All of the above
  • None of the above

Answer :Short term and long term debt financing

Post disbursement supervision by lenders, particularly in respect of loans up to should be constructive with a view to taking care of any" lender-related" genuine difficulty that the borrower may face.: 


Options are :

  • Rs.25000
  • Rs.25000
  • Rs. 1 lac
  • Rs. 2 lac

Answer :Rs. 2 lac

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

For transfer of borrowal account to another bank/financial institution, the consent or otherwise i.e., objection of the lender, if any, should be conveyed within days from the date of receipt of request.


Options are :

  • 7
  • 15
  • 21
  • 30

Answer :21

X is maintaining a SB account with Popular Bank and wrongly credited an amount of Rs.12500 to his account. This was entered in his pass book also. Later on when the mistake came to bankís notice it debited customerís account but did not inform the customer. Meanwhile the customer issued a cheque on the basis of this balance which was dishonoured by the bank.


Options are :

  • Customer can ask for damages for return of his cheque although amount was recoverable from him, had the cheque been paid
  • Customer cannot ask for damages as bank has only rectified the mistake
  • It was customerís duty to check the pass book for bringing the error to bankís notice. Hence customer cannot claim any damages
  • None of the above

Answer :Customer can ask for damages for return of his cheque although amount was recoverable from him, had the cheque been paid

Which among the following statements is true in connection with customer account: 


Options are :

  • On receipt of information of customerís death verbally, the bank cannot stop payment in the account
  • When an account is to be closed by the bank, it is not under obligation to tell the reasons to the customer
  • When a customer wants to close his account with the bank, he is not under obligation to disclose the reasons to the bank
  • Pass-book is the copy of the bank records, available with the customer

Answer :When a customer wants to close his account with the bank, he is not under obligation to disclose the reasons to the bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

National Housing Bank was established under National Housing Bank Act.1987 and started functioning from 9th July 1988. on the recommendation madeby a High Level Group headed by :      


Options are :

  • Dr. C. Rangarajan
  • Dr. Bimal Jalan
  • Mr. Narsimham
  • Mr. I. G. Patel
  • None of the above.

Answer :Dr. C. Rangarajan

National Housing Bank is wholly owned by :       


Options are :

  • Reserve Bank of India.
  • Housing Development Finance Corporation Ltd
  • Housing Development Boards of Various States
  • All of the above
  • None of the above

Answer :Housing Development Finance Corporation Ltd

X is issued a cheque of Rs.22000 payable to B or order. The cheque is misplaced and found by C. C forges Bís signatures and endorses in favour of D, who obtains payment from the bank: 


Options are :

  • This is payment in due course and bank will protection u/s 85 (1) of NI Act
  • This is payment in due course and bank gets protection u/s 131 of NI Act
  • For this payment on the basis of a forged endorsement, bank is liable
  • Bank and C are liable in equal proportion

Answer :This is payment in due course and bank will protection u/s 85 (1) of NI Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Which among the following is the objective of issuing KYC guidelines by RBI: 


Options are :

  • Check fraudulent activities of the borrowers
  • Check money laundering activities
  • Avoid undesirable customer to enter the banking system
  • A and b
  • B and c

Answer :B and c

The main objectives of National Housing Bank are :       


Options are :

  • To promote and develop specialized housing institutions for mobilization of resources and extending finance for housing activities.
  • To extend refinance facilities to housing finance institutions and to scheduled banks
  • To provide guarantee and underwriting facilities to housing finance institutions
  • All of the above
  • None of the above

Answer :To promote and develop specialized housing institutions for mobilization of resources and extending finance for housing activities.

For availment of refinance from National Housing Bank, Scheduled Bank has to satisfy the following conditions :       


Options are :

  • The capital adequacy ratio of the Banks should be as per the norms prescribed by the Reserve Bank of India.
  • The Net Non-Performing Assets to the net advances of the Bank should not exceed 10%.
  • The Scheduled Commercial Bank has earned profit for the last two years.
  • All of the above
  • None of the above

Answer :The Scheduled Commercial Bank has earned profit for the last two years.

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Basel III recommendations shall be completely implemented in India by:


Options are :

  • 31.03.2020
  • 31.03.2019
  • 31.03.2018
  • 31.03.2017

Answer :31.03.2019

In  terms  of  Section  293  (1)  d.  of  the  Companies  Act,  1956,  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

Which of the following is not a source of working capital for a manufacturing firm:


Options are :

  • Sundry creditor
  • Unsecured advances
  • Bank term loan
  • Bank overdraft

Answer :Bank term loan

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

The  first  committee  that  gave  its  recommendations  relating  to  mechanization  of  banking  system: 


Options are :

  • Rangarajan Committee
  • Saraf Committee
  • Shere Committee
  • Narasimham Committee

Answer :Rangarajan Committee

Can nomination be made in a singly operated SB Account of a Minor above age of 10 years?


Options are :

  • No, Contract with a Minor is void ab initio
  • Yes, DA1 form to be signed by the Minor himself
  • Yes, DA1 form to be signed by the person who is lawfully entitled to act on behalf of the minor
  • Either b or c

Answer :Yes, DA1 form to be signed by the person who is lawfully entitled to act on behalf of the minor

Which of the followings cannot become a Partner in a Firm? 


Options are :

  • Company as a single entity
  • Trust if provided in Trust Deed
  • HUF as a single entity
  • Another Firm, each partner as individual member

Answer :HUF as a single entity

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

An  electronic  substitute  for  a  manual  signature  that  serves  the  similar  function  as  a  manual signature is called as (i) encrypted signature, (ii) digital signature


Options are :

  • Only (i)
  • Only (ii)
  • Either (i) or (ii)
  • Both (i) and (ii)

Answer :Only (ii)

Any addition/alteration made in the ĎWillí by maker by an instrument is referred to as ...... 


Options are :

  • Allonge
  • Codicil
  • Assignment
  • None

Answer :Codicil

How many common seals a company may have? 


Options are :

  • Any Number
  • Only One
  • As Provided in AoA
  • As Provided in MoA

Answer :Only One

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

As per Basel III, which of the following can be included in Additional Tier I capital (1) Perpetual Noncumulative Preference shares ó PNCPS (2) stock surplus or share premium resulting from issue of Additional Tier I instruments (3) Debit capital instruments eligible to be included in additional Tier I.


Options are :

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

Answer :1 to 3 all

As per Basel III, Tier 2 capital comprises which of the following (1) general provisions and loss reserves (2) debt capital instruments issued by bank (3) preference share capital instruments with redeemable or cumulative feature (4) revaluation reserve (5) stock surplus i.e. share premium resulting from issue of Tier 2 eligible instruments.


Options are :

  • 1 to 5 all
  • 1 to 4 only
  • 1, 4 and 5 only
  • 1, 2 and 3 only

Answer :1 to 5 all

As per Basel III, general provisions and loss reserves are included in Tier-2 capital maximum to the extent of: 1.25% of total risk weighted assets under standardized approach and 0.6% of total risk weighted assets under IRB approach


Options are :

  • 0.6% of total risk weighted assets under standardized approach and 0.6% of total risk weighted assets under IRB approach
  • 0.6% of total risk weighted assets under standardized approach and 1.25% of total risk weighted assets under IRB approach
  • 1.25% of total risk weighted assets under standardized approach and 1.25% of total risk weighted assets under IRB approach

Answer :0.6% of total risk weighted assets under standardized approach and 0.6% of total risk weighted assets under IRB approach

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Which of the following is not true in respect of Garnishee order? 


Options are :

  • Issued under S 60 of the Civil Procedure Code
  • Attaches TDRs payable at a Future Date
  • Collection items / Clearing Credits realized after the receipt of the order are not attached
  • Order in Joint names then deposit in single name not attached

Answer :Order in Joint names then deposit in single name not attached

Which of the following statement is not true? 


Options are :

  • Minor cannot become a partner in a Firm but he can be admitted to the benefits of the partnership with the consent of all partners
  • Minor is not liable personally for any debts of the Firm nor his private property can be made liable
  • Minorís share in the Firm is liable for all acts of the Firm
  • Within one month of attaining majority, Minor should by way of public notice, elect to become or not to become a partner in the Firm

Answer :Within one month of attaining majority, Minor should by way of public notice, elect to become or not to become a partner in the Firm

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