JAIIB - Principles and Practices of Banking Mock Tests Set 4

A  customer  has  a  saving  bank  account  and  her  husband  had  withdrawn  the  money  from the bank on the basis of forged cheques at various occasions but the customer did not object to it. After his death, she comes to bank and demands the money: 


Options are :

  • Bank would refer the matter to the court
  • Bank is liable on forged cheques
  • The bank is negligent but not liable, as the customer is party to the forgery and did not inform the bank in time
  • loss shall be borne in the ratio of 50:50 by the bank and the customer

Answer :Bank is liable on forged cheques

JAIIB - Principles and Practices of Banking Mock Tests Set 5

A customer of Delhi branch of the bank having Multi-city cheque book under the CBS, demands payment of a cheque at Lucknow branch of the bank and there is connectivity between these two branches ...... 


Options are :

  • it is not a proper demand
  • demand is in order. Lucknow branch should pay. Bank would get proper discharge.
  • to demand money all bank branches are considered one unit whether the cheque is normal or multi-city
  • demand is in order, but Lucknow branch cannot get valid discharge as contract is with Delhi branch

Answer :demand is in order. Lucknow branch should pay. Bank would get proper discharge.

The net stable funding ratio (NSFR) under Basel-III will be implemented in India from


Options are :

  • 01.01.2017
  • 01.04.2017
  • 01.01.2018
  • 01.04.2018

Answer :01.01.2018

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


Options are :

  • Fund & non-fund based claims on Central Govt. 0%
  • Fund and non-fund based Central Govt. guaranteed claims — 0%
  • Fund and non-fund based State Govt. guaranteed claims — 0%
  • Fund and non-fund based claims on State Govt. — 0%.

Answer :Fund and non-fund based State Govt. guaranteed claims — 0%

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Not negotiable crossing means ...... 


Options are :

  • The collecting banker should confirm about the genuineness of holder before collection of his cheque
  • The not negotiable cheque cannot be further negotiated
  • Collection of not negotiable cheque will not get protection under NI Act
  • A transferee cannot get better title than a transferor and he also cannot transfer a better title than he possesses

Answer :A transferee cannot get better title than a transferor and he also cannot transfer a better title than he possesses

A firm discounts its export receivables of up to 5 years without recourse to the exporter under which of the following arrangement:


Options are :

  • forfaiting
  • factoring
  • securitisation
  • bills discounting

Answer :forfaiting

A & B are maintaining an ‘E or S’ account. D has been named as nominee. Both A & B die in an accident. C, son of A, produces a court order restraining the Bank from making payment from the account. What action you will take? 


Options are :

  • Payment will be made jointly to legal heirs of A & B
  • Payment will be made to C
  • Payment to D will be a valid discharge to Bank’s Liability
  • Payment to D will be stopped

Answer :Payment to D will be stopped

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

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


Options are :

  • Claims on RBI or DICGC 0%
  • Claims on Credit Guarantee Fund Trust for MSE — 0%
  • Claims on Credit Risk Guarantee Fund Trust for Low Income Housing — 0%
  • Claims on ECGC — 0%.

Answer :Claims on ECGC — 0%.

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach, does not match for claims on foreign public sector enterprises (based on rating of S & P, Fitch, Moody's Rating), in respectof which of the following:


Options are :

  • AAA to AA rating — 20%
  • A rating — 20%
  • BBB to BB rating — 100%
  • unrated —100%

Answer :A rating — 20%

Who among the following will sign the account opening form for opening a current account in case  of  a  partnership  firm  where  the firm  has  three  partners  and  a  minor,  aged  17,  has  been admitted to the firm for benefits? 


Options are :

  • all the three and the father of the minor
  • all the three and natural guardian of the minor
  • all the three and the minor himself
  • all the three partners only excluding the minor

Answer :all the three partners only excluding the minor

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Sales are declining, profits are declining and competition is increasing. These indicate that the product may be in ...... 


Options are :

  • Introduction stage
  • Decline stage
  • Growth stage
  • None of the above

Answer :Decline stage

The three layers of packaging are ...... 


Options are :

  • Primary, secondary, tertiary packaging
  • Primary, secondary and shipping packaging
  • Shipping, inner and outer packing
  • None of the above

Answer :Primary, secondary and shipping packaging

The small companies created exclusively to deal with Govt Securities are called... 


Options are :

  • Mutual Funds
  • Primary Dealers
  • FIIs
  • NBFCs

Answer :Primary Dealers

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Under Basel III, what is the risk weight for capital charge for credit risk on the basis of standardized approach, for claims on Bank for International Settlements, International Monetary Fund, Multi lateral Development Banks:


Options are :

  • 0%
  • 10%
  • 20%
  • 50%

Answer :20%

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach, does not match for claims on foreign banks (based on rating of international rating agencies such as S & P, Fitch, Moody's Rating), in respect of which of the following:


Options are :

  • AAA to AA rating — 20%
  • BBB rating — 50%
  • Below B rating — 150%
  • unrated —150%

Answer :unrated —150%

Instead of 4P, which is used for Marketing services? 


Options are :

  • 5P
  • 6P
  • 7P
  • 8P

Answer :7P

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

A CP is a/an ...... instrument.


Options are :

  • Secured
  • Unsecured
  • Both a & b
  • None of these

Answer :Unsecured

‘A’ maintaining an SB Account dies intestate. No nomination had been made by him. Balance in the account  is  Rs  1  lakh.  Which  of the  following  is  not  required  for  settling  the  claim  without legal representation?  


Options are :

  • Death Certificate of ‘A’
  • Claim format signed by claimants
  • Stamped Letter of Indemnity by claimants & Sureties
  • Affidavit (stamped. from one Independent respectable person

Answer :Affidavit (stamped. from one Independent respectable person

A credit voucher for Rs. 30,000/- favouring Raju was wrongly posted to Ramu by the bank. The relationship established with Ramu is of ...... 


Options are :

  • trustee and beneficiary
  • debtor and guarantor
  • creditor and indemnifier
  • creditor and debtor

Answer :creditor and debtor

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Computeration in banks can bring improvement in the area of (a) customer service (b) house-keeping (c) decision making (d) productivity. Which of these is corr4ect: 


Options are :

  • A, b and c only
  • B, c and d only
  • A, c and d only
  • A to d all

Answer :A to d all

Basel III capital regulations are based on 3 mutually reinforcing pillar. These pillars are (1) Pillar-1 minimum capitalstandards (2) supervisory review of capital adequacy (3) risk management.


Options are :

  • all the 3 are correct
  • only 1 and 2 are correct
  • only 1 and 3 are correct
  • only 2 and 3 are correct
  • Under Basel II

Answer :only 1 and 2 are correct

A bank purchases a commercial complex from XYZ in realization of loan. What is the disposal period RBI discretion to extend the said disposal period u/s ______ of Banking Regulation Act:


Options are :

  • 7 years, 5 years, Sec 9
  • 7 years, 7 years, Sec 9
  • 5 years, 7 years, Sec 6 (1)
  • 5 years, 5 years, Sec 6 (1)

Answer :7 years, 5 years, Sec 9

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Private banks and foreign banks are regulated by ______ Act for their constitution and  _______ Act and _____ Act for their business of Banking: 


Options are :

  • Companies Act, NI Act, RBI Act
  • NI Act, B R Act, RBI Act
  • Companies Act, B R Act, RBI Act
  • Companies Act, B R Act, NI Act

Answer :Companies Act, B R Act, RBI Act

Under Basel II the option available to compute capital for credit risk are:


Options are :

  • standardized approach
  • risk management approach
  • advance measurement approach
  • standardized approach

Answer :advance measurement approach

Under Basel III, the options available to compute capital for operational risk are


Options are :

  • standardized approach
  • risk management approach
  • advance measurement, approach
  • basic
  • indicator approach

Answer :risk management approach

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Under Basel III, the options available to compute capital for market risk are :


Options are :

  • standardized approach
  • risk management approach
  • advance, measurement approach
  • basic indicator
  • approach

Answer :advance, measurement approach

As  per  Sec.  372  A  of  Companies  Act,  1956  a  Limited  Company  can  make  a  loan  to  any  other body corporate and give a guarantee upto ...... 


Options are :

  • 60% of its paid-up share capital and free reserves
  • 100% of its free reserves
  • Higher of a and b
  • Lower of a and b

Answer :Higher of a and b

The banks in India are required to compute Basel III capital ratios in the following manner (1) Common equity Tier I capital ratio (2) Tier I capital ratio (3) Tier 2 capital ratio (4) Total capital to risk weighted asset ratio 


Options are :

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

Answer :1,2 and 4 only

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

As per Basel III, which of the following is an element of Common Equity component of Tier I (1) common shares i.e. paid up equity capital (2) stock surplus i.e. share premium (3) statutory reserves (4) capital reserves representing surplus arising out of sale proceeds of assets (5) balance in profit and loss account at the end of the previous year.


Options are :

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

Answer :1 to 5 all

To  authenticate  a  Digital  signature,  which  of  the  following  keys  are  used:  (i)  Private  key,  (ii) Public key, (iii) Master key  


Options are :

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

Answer :Only (i) and (ii)

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions