JAIIB - Principles and Practices of Banking Mock Tests Set 5

“Ethics” is derived from the Greek word _________, and from the Latin word ____________


Options are :

  • ethes (Character), ethos(customs)
  • ethos (character), mores (customs).
  • mores(customs), ethos(character)
  • ethmos(character), ethes(customs)

Answer :ethos (character), mores (customs).

JAIIB - Principles and Practices of Banking Mock Tests Set 6

Shivani, a staff accountant, becomes aware of an off-balance sheet bank account where funds have been diverted with offsetting credits approved by his immediate supervisor. His immediate supervisor refuses to discuss it and suggests Shivani forget about it. Which one of the following should be Shivani’s next course of action in this circumstance?


Options are :

  • Put her concerns in writing to the immediate supervisor and copy the company’s independent auditor.
  • Discuss her concerns with the level of management above the immediate supervisor.
  • Communicate her concerns confidentially to the company’s independent auditor.
  • Communicate her concerns confidentially to the company’s external legal counsel.

Answer :Discuss her concerns with the level of management above the immediate supervisor.

If an accountant’s immediate supervisor instructs the accountant to withhold essential but unpleasant information in a management report, the accountant should:


Options are :

  • do as the supervisor ask and tell no one.
  • refuse to do as the supervisor asks and alert an investigative reporter to the problem.
  • take the matter to the supervisor’s immediate supervisor.
  • take the matter directly to the corporate ombudsman.

Answer :take the matter to the supervisor’s immediate supervisor.

Which of the following is NOT an ethical work to do at the bank? I) Doing personal work during office hours. II) Taking credit for others’ work III) Doing homework of the children at office as a routine IV) Claiming the medical reimbursement even through medicines were never purchased. V) Using office photocopying for personal works VI) Using the personal details of bank customers for personal benefit and mileage


Options are :

  • Only I,II,III
  • Only II,IV,V
  • all of the above (I,II,III,IV,V,VI)
  • Only IV,V,VI

Answer :all of the above (I,II,III,IV,V,VI)

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Corporate management is responsible for creating an ethical culture by doing all of the following expect


Options are :

  • identifying and documenting organizational values
  • defining principles of behavior
  • implementing a whistle blowing mechanism
  • creating a code of ethics or conduct

Answer :implementing a whistle blowing mechanism

6. Certain values that are essential for banking professionals are –


Options are :

  • responsibility
  • respect
  • fairness
  • honesty
  • All of the above

Answer :All of the above

7.The most important reason for creating an ethical culture is:


Options are :

  • decreasing risk in the organization.
  • creating alignment between what an organization believes in and what its employees do.
  • ensuring compliance with government policies.
  • increasing net income.

Answer :creating alignment between what an organization believes in and what its employees do.

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

8. Ethics are classified as-


Options are :

  • Descriptive Ethics
  • Normative Ethics
  • Meta-ethics
  • All of the above

Answer :All of the above

9.On which two theories Normative Ethical System is based?


Options are :

  • Utilitarianism
  • Ethical formalism
  • Both a and b
  • Only a

Answer :Both a and b

10. Companies frequently recall their defective products because it may otherwise lead to


Options are :

  • Losing current market share
  • May lose projected revenue for current financial year
  • Endangering the reputation of the company or equally costly legal hassles
  • Face low inventory for running financial year

Answer :Endangering the reputation of the company or equally costly legal hassles

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

11.For ethics training to be effective, it should contain all of the following elements expect


Options are :

  • be a part of orientation as well as ongoing training.
  • relate to real-world situations faced by employees.
  • provide a consistent message.
  • include a test to evaluate learning.

Answer :include a test to evaluate learning.

12. Which of the following business principles will result into an unprecedented business success- 1) Dignity 2) Latest Technology 3) Honesty 4) Openness 5) Reputation/ goodwill 6) Prudence 7) Profitability


Options are :

  • Only 1,2,3,4
  • Only 1,3,4,5,6
  • Only 2,4,5,7
  • all of the above

Answer :Only 1,3,4,5,6

13. Practicing fairness is committed to equal distribution of justice and treats all individuals equally. The three aspects to this perspective are -


Options are :

  • One is that everyone gets equal share.
  • People get shares according to their contribution.
  • People get share according to need.
  • All of the above

Answer :All of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

14.A company has a March 31st year end. Which one of the following options to increase net income during the last month of the company’s fiscal year would least likely result in a violation of Ethical Professional Practice?


Options are :

  • Persuade suppliers to postpone billing until April 1.
  • Delay the year-end closing until April 4 to capture fiscal end sale.
  • Reduce the calculated allowance for bad debts and bad debt expenses.
  • Postpone planned marketing expenditures until April.

Answer :Postpone planned marketing expenditures until April.

15. Principles of ethics in banking business provide a guideline to the banking professional, which helps them in dealing with ethical issues. Banks are responsible not only towards its customers, but also its employees, investors, community, and Government. Which of the following are principles of ethical banking? 1)Principle of Trust 2) Integrity 3) Neutrality 4) Reliability 5) Transparency


Options are :

  • Only 1,3,5
  • Only 2,3,4
  • All of the above 1,2,3,4,5
  • None

Answer :All of the above 1,2,3,4,5

16. Which of the following are duties of a Professional Banker? 1) Integrity is dealing 2) Honesty in actions along with being truthful 3) Human values 4) Thoughtfulness in decision making 5) Objectiveness in actions 6) Responsibility towards employer and customer 7) Leadership qualities at the work place


Options are :

  • Only 1,2,5,7
  • Only 2,5,6,7
  • All of the above Except 2,3
  • All of the Above viz. 1,2,3,4,5,6,7

Answer :All of the Above viz. 1,2,3,4,5,6,7

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

17.What is a common approach to monitoring the effectiveness of ethical training and employees' understanding of the company ethics policy and their compliance with it?


Options are :

  • Quality management
  • Human performance feedback loop
  • Pareto principle
  • Continual process improvement

Answer :Human performance feedback loop

18.Which one of the following statements is true?


Options are :

  • Business ethics modifies people’s behavior.
  • Objective of ethics is managing values and conflict resolution.
  • Business ethics and corporate social responsibilities are the same.
  • Ethics cannot be managed.

Answer :Objective of ethics is managing values and conflict resolution.

19.Whistle blower protection Act______________, in India, protects people who provide information about wrongdoing.


Options are :

  • 2018
  • 2017
  • 2012
  • 2011

Answer :2011

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

20.What is one of the reasons why a documented code of ethics is important to a business and its employees?


Options are :

  • Once the code of ethics is documented, expensive company training regarding ethical behavior standards in the company can be discontinued to save money.
  • Existence of a documented code of ethics frees senior management from responsibility for inappropriate behavior by employees of the business.
  • Once the code of ethics is documented, senior management can turn their attention to more important issues such as revenue generation and customer satisfaction.
  • A documented code of ethics provides a framework for decision making in situations where an explicit company policy does not exist.

Answer :A documented code of ethics provides a framework for decision making in situations where an explicit company policy does not exist.

21. Business Ethics is helpful in –


Options are :

  • Dealing with dilemma
  • Guards reputation
  • Helps in avoiding future risk
  • All the above

Answer :All the above

22. Which of the following are theories related to Ethics? 1) Virtue (theory of) Ethics 2) Utilitarianism, Rights Theory 3) Theory of Relativity 4) Rawlsian Theory 5) Law of Attraction 6) Deontological Theory


Options are :

  • Only 1,2,3,4
  • Only 1,2,4,6
  • Only 1,2,3,4,5
  • All of the above viz. 1,2,3,4,5,6

Answer :Only 1,2,4,6

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

23. The approach to ethics in which human nature is characterized by the objective of ethical thinking is called -


Options are :

  • Virtue ethics
  • Utilitarianism
  • Rights Theory
  • Justice theory

Answer :Virtue ethics

24.What have public companies created to enable their employees to report improper behavior anonymously?


Options are :

  • Meetings with members of senior management where the employee can raise their concerns to corporate decision makers.
  • A confidential hotline that provides a means to help people overcome fear or apprehension to speak openly when they see others not behaving in an appropriate manner.
  • A corporate ombudsman who brings together the conflicting parties to arbitrate a solution to the conflict.
  • Workers councils, under the supervision of company management, where employees can discuss their issues with other employees.

Answer :A confidential hotline that provides a means to help people overcome fear or apprehension to speak openly when they see others not behaving in an appropriate manner.

25. Which of the following are components of virtue? 1) Habit 2) Thoughtfulness to reasons 3) Emotions and attitude 4) Natural Inclination to Act for Profit


Options are :

  • Only 1,2,3
  • Only 1,2,4
  • Only 2,3,4
  • All of the above viz. 1,2,3,4

Answer :Only 1,2,3

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

26.Which of the following statements describe the importance of a Whistle blowing framework in maintaining an ethical organizational culture? I. It provides measurable feedback for determining whether employees are following a code of ethics. II. It creates opportunities to enhance and improve internal controls. III. It empowers management to become better role models for employees. IV. It helps to identify potential errors or risks at each task level within the organization.


Options are :

  • I, III and IV only.
  • I and II only.
  • III and IV only.
  • II and IV only.

Answer :I and II only.

27. Which theory of ethics suggests that for any action to be right or wrong is dependent on the outcome of choosing that action over other actions with a different outcome. Also a right action must promote happiness?


Options are :

  • Virtue ethics
  • Utilitarianism
  • Rights Theory
  • Justice theory

Answer :Utilitarianism

28. Which theory of Ethics looks at the balance of benefits and burdens equally distributed among the members of a group or society?


Options are :

  • Virtue ethics
  • Utilitarianism
  • Rights Theory
  • Justice theory

Answer :Justice theory

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

29. Which theory of ethics is explained as – “something that an individual claims or is entitled to have”


Options are :

  • Virtue ethics
  • Utilitarianism
  • Rights Theory
  • Justice theory

Answer :Rights Theory

30. Which of the following is correct difference between Morals and Ethics?


Options are :

  • Morals are general guidelines framed by the society, like respect your elders. While Ethics is application of these guidelines to a particular situation.
  • Morals are prescribed by parents; whereas Ethics that governs an individual’s life, is chosen by society.
  • Morals are largely related with principles of day to day working. On other hand, ethics emphasizes more on right and wrong conduct.
  • Morals have any business applicability, while Ethics have no applicability in the business.

Answer :Morals are general guidelines framed by the society, like respect your elders. While Ethics is application of these guidelines to a particular situation.

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