JAIIB - Principles and Practices of Banking Mock Tests Set 6

31.Which of the following actions is not an appropriate course of action when encountering problems identifying unethical behavior or resolving an ethical conflict, if your organization's established policies do not resolve the ethical conflict?


Options are :

  • Clarify relevant ethical issues by initiating a confidential discussion with an Ethics Counselor or other impartial advisor to obtain a better understanding of possible courses of action.
  • Discuss the issue with your immediate supervisor except when it appears that the supervisor is involved. In that case, present the issue to the next level. If you cannot achieve a satisfactory resolution, submit the issue to the next management level.
  • Communicate your concerns to the authorities or to persons outside the organization who may be interested parties.
  • Consult your own attorney regarding your legal obligations and rights concerning the ethical conflict.

Answer :Communicate your concerns to the authorities or to persons outside the organization who may be interested parties.

JAIIB - Principles and Practices of Banking Mock Tests Set 7

32.According to Ethical Professional Practice, one of the overarching ethical principles is "Honesty". "Honesty" means


Options are :

  • fairness, straightforwardness; being upright, truthful, sincere, frank, and free from deceit or fraud.
  • refraining from engaging in any conduct that would prejudice carrying out duties ethically.
  • disclosing delays or deficiencies in information in conformance with organization policy and/or applicable law.
  • being answerable or accountable for something that is within one's own power, control or management.

Answer :fairness, straightforwardness; being upright, truthful, sincere, frank, and free from deceit or fraud.

33. Which of the following are some of the salient ideas and thoughts of Indian Ethos for management revealed by our ancient scriptures? 1. Work is a kind of worship of the Lord. 2. Work should be done as a sense of duty without anticipating rewards. 3. All work provides an opportunity to serve the humanity and by this one can get salvation. 4. When all of us unite and join hands to work together and live together peace prosperity and pleasure grows and stays in the society permanently.


Options are :

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

Answer :all of the above viz. 1,2,3,4

34.A company's code of conduct states "Our employees are our most valuable asset." Which one of the following policies best illustrates that management strives to provide leadership by example in ethical matters concerning employees?


Options are :

  • Final terms on all major purchase and sales contracts are negotiated only by management.
  • Management declines to accept bonuses earned in any year in which no raises are given to employees.
  • The company relies on supervisors, rather than manuals, to train employees in their responsibilities.
  • Management and the Board of Directors meet annually at a luxury resort for a strategic planning conference.

Answer :Management declines to accept bonuses earned in any year in which no raises are given to employees.

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

35.Business Ethics from business values. Which statement is true in case of Business Ethics?


Options are :

  • it induces thinking
  • it explains what we want to do or achieve
  • it explains what is morally correct or incorrect in the given situation
  • it explains principles and ideas which help them in making judgement of what is more important

Answer :it explains what is morally correct or incorrect in the given situation

36. Code of ethics is required - 1) To define acceptable laws of profit making. 2) To promote high standards of practice 3) To provide benchmark for members to use self-evaluation 4) To establish a framework for professional behavior and responsibilities


Options are :

  • Only 1,2,4
  • Only 2,3,4
  • Only 1,2,3
  • Only 1,3,4

Answer :Only 2,3,4

37.In February 2018 Letter of Credit Scam hit the Indian Banking Industry. As far as regulatory requirements are concerned, the bank was subjected to all kinds of internal, concurrent and statutory audit. These audits are in addition to normal disclosure a bank has to make based on various RBI Guidelines. Even after such stringent disclosure and compliance, this particular" LOU Scam" went on for more than 6 years. This proves that in addition to compliance the work culture and ethical behavior of the workforce also plays much more significant role. The ethical behavior becomes much more critical and to a certain extent puts limitation in meeting the compliance. Which of the following are some of the issues that put limitations in meeting the best standards while meeting the regulatory compliance- 1) Rising NPAs 2) Window dressing of books every quarter-end or year-end 3) Mis-selling of products is a big challenge. 4) Organizing regular Loan Melas.


Options are :

  • Only 1,2,4
  • Only 2,3,4
  • Only 1,2,3
  • Only 1,3,4

Answer :Only 1,2,3

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

38.Which is the holistic approach on ethics of production?


Options are :

  • well- being of consumer and Society
  • best quality products and no compromise in it
  • cost efficiency
  • a to c all

Answer :a to c all

39.According to Ethical Professional Practice, one of the overarching ethical principles is "Objectivity." "Objectivity" means


Options are :

  • acting in an impartial manner and being free from dishonesty or injustice.
  • doing what you say you will do when you say you will do it.
  • basing a judgment on an established set of criteria.
  • fairness and straightforwardness of conduct.

Answer :basing a judgment on an established set of criteria.

40.Which of the following is NOT one of the three Golden rules of ethics?


Options are :

  • Everything you want others to do to you, you should do to others.
  • Do not do to others that you do not wish them to do to you.
  • Do not do anything to others something, which, if done to you can cause harm to you.
  • As you sow, so shall you reap.

Answer :As you sow, so shall you reap.

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

41. An ethical dilemma exists when one is faced with having to a make choice among which of the following alternatives?


Options are :

  • Significant value conflicts among differing interests.
  • Real alternatives that is equally justifiable.
  • Significant consequences on stakeholders in situation.
  • All of the above

Answer :All of the above

42.Ethics means ______ (i) Character, (ii) Manner, (iii) Custom


Options are :

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

Answer :(i), (ii) and (iii)

43.Company A has a formal corporate code of ethics while company B does not. The code of ethics covers such things as purchase agreements and relationships with vendors as well as many other issues to guide individual behavior within the company. Which of the following statements can be logically inferred? I. Company A exhibits a higher standard of ethical behavior than does company B. II. Company A has established objective criteria by which an employee's actions can be evaluated. III. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.


Options are :

  • II and III only.
  • II only.
  • I and II only.
  • III only.

Answer :II only.

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

44.Which of the following are responsibilities of the Senior Management of the bank? I) Evaluating the risks and materiality of all existing and prospective outsourcing, based on the framework approved by the Board. II) Reviewing periodically the effectiveness of policies and procedures. III) Ensuring the contingency plans, based on realistic and probable disruptive scenarios, are in place and tested. IV) ensuring that there is independent review and audit for compliance with set policies.


Options are :

  • II and III only.
  • II only.
  • I and II only.
  • All I to IV.

Answer :All I to IV.

45.What refers to creating a code of ethics and implementing the code in letter and spirit and it includes all activities of banks like sales and marketing, services delivery, regulatory compliance?


Options are :

  • work ethics
  • self-ethics
  • Institutionalizing ethics
  • none of the above

Answer :Institutionalizing ethics

46.Ethics is a ...... (i) Social science, (ii) Science of conduct, (iii) Normative Science


Options are :

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

Answer :(i), (ii) and (iii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

47. Traditionally, ethical decision making has involved weighing of four factors. Which of the following is NOT one of the factor?


Options are :

  • The desired outcome of a decision;
  • The means used to achieve the desired outcome;
  • The motivation behind the decision; and
  • The possible demerits of choosing a particular decision.

Answer :The possible demerits of choosing a particular decision.

48.Which of the following is not a feature of value


Options are :

  • Value provide standards of competence and morality
  • Values are very large in number
  • Values are relatively temporary and vulnerable to change
  • None of the above

Answer :Value provide standards of competence and morality

49.Codes of conduct and codes of ethics ......


Options are :

  • are formal statements that describe what an organization expects of its employees
  • become necessary only after a company has been in legal trouble
  • are designed for top executives and managers, not regular employees
  • rarely become an effective component of the ethics and compliance program

Answer :are formal statements that describe what an organization expects of its employees

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

50.What is business ethics?


Options are :

  • The study of business situations, activities, and decisions where issues of right and wrong are addressed
  • Defined as decisions that organizations make on issues that could be considered right or wrong
  • Ethics that can be applied to an organisation's practices
  • Ethical processes businesses use in order to achieve a good ethical standard

Answer :The study of business situations, activities, and decisions where issues of right and wrong are addressed

51.Literally the word ethics stand for ......


Options are :

  • Understanding human nature
  • Study of morality
  • properties of chemical
  • substances

Answer :Study of morality

52.Which of the following is an example of an area where business ethics apply?


Options are :

  • Conduct of international operations
  • Nowhere
  • In the personal life of staff
  • None of the above

Answer :Conduct of international operations

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

53.Which one of the following approaches to creating an ethical and socially responsible workplace is likely to be the most powerful?


Options are :

  • Passing out buttons with the statement "Just Say No to Bad Ethics"
  • Placing posters about ethics throughout the organization
  • Top management acting as models of the right behavior
  • Including a statement about ethics and social responsibility in the employee handbook

Answer :Top management acting as models of the right behavior

54.Ethics are important because ...... (i) suppliers prefer to deal with ethical companies, (ii) customers prefer to deal with ethical companies, (iii) employees prefer to deal with ethical companies


Options are :

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

Answer :(i), (ii) and (iii)

55.A ...... is a buzz word to employees to observe ethical norms and forms the basis for rules of conduct. (i) Code of ethics, (ii) Business Ethics


Options are :

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

Answer :Only (i)

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

56.Which among the following are advantages of managing business ethics in the workplace? (i) Cultivate strong team work and productivity, (ii) Avoid criminal acts, (iii) Lower fines


Options are :

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

Answer :(i), (ii) and (iii)

57.Recently Fan Club Inc. submitted a budget for the coming year to management. Included in the budget were the plans for a new product, a rechargeable fan. The new fan will not only last longer than the competitor's product but is also more quiet. While not yet approved, the budget called for aggressive advertising to support its sales targets, as the business community was not yet aware that Fan Club was close to production of a new fan. A member of the management accounting staff "shared" the budget with a distributor. In accordance with Ethical Professional Practice," which one of the following would best represent an ethical conflict in this situation?


Options are :

  • The employee should refrain from disclosing confidential information.
  • The staff member exposed the company to a potential lawsuit.
  • The budget has not been approved and therefore is not for publication.
  • The price has not been established, so expectations must be managed.

Answer :The employee should refrain from disclosing confidential information.

58. _________is a process that allows people to make decisions based on their deeper values which will be economically, socially and environmentally sound


Options are :

  • Holistic approach
  • Ethics management
  • Code of conduct
  • None of these

Answer :Holistic approach

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

59. The Golden Rule of Ethics says:


Options are :

  • Don't react to others
  • Do as you want others to do to you
  • Do as you wish to behave
  • None of the above

Answer :Do as you want others to do to you

60.Small-business owner Anand is thinking about giving a potential customer an expense paid vacation to Las Vegas for her and her husband. When asked if he is being ethical, Anand replies, "Look whatever works, works." Which ethical principle is Anand most likely using?


Options are :

  • focus on the rights of individuals
  • pragmatism
  • utilitarianism (consequences)
  • focus on integrity (virtue ethics)

Answer :pragmatism

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