JAIIB - Principles and Practices of Banking Mock Tests Set 7

61.Which step is not correct while taking steps for dealing with ethical dilemma?


Options are :

  • rule based thinking
  • care based thinking
  • make decisions and delaying actions
  • revisit and reflect on the decision

Answer :make decisions and delaying actions

JAIIB - Principles and Practices of Banking Mock Tests Set 8

62.Which of the following statements is a responsibility for a banker regarding the "Competence" standard of ethical conduct?


Options are :

  • To refrain from engaging in any conduct that would prejudice carrying out duties ethically.
  • To communicate information fairly and objectively.
  • Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates' activities to ensure compliance.
  • To perform professional duties in accordance with relevant laws, regulations, and technical standards.

Answer :To perform professional duties in accordance with relevant laws, regulations, and technical standards.

63.Ethical Dilemma occurs when


Options are :

  • There is clash between the two rights
  • Conflict between right and less right
  • Disagreement between right and wrong
  • All of the above

Answer :There is clash between the two rights

64. Which among the following are the Consequences of unethical behavior of Bank Staff: 1) Affecting fame and reputation of the bank 2) Increase in share value of the bank. 3) Losing client and business partners 4) Wasting resources to hide unethical behavior.


Options are :

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

Answer :Only 1,3,4

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

65.Which of the following methods can be used as a tool to identify process controls related to ethical or behavioral issues?


Options are :

  • Ratio analysis
  • Business process re-engineering
  • Decision trees
  • Sensitivity analysis

Answer :Business process re-engineering

66. Which of the following is unethical behaviour of an employee?


Options are :

  • Honesty
  • Integrity
  • Selling Gold bond by assuring that customer will get fixed returns on maturity.
  • Respect of the others.

Answer :Selling Gold bond by assuring that customer will get fixed returns on maturity.

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


Options are :

  • doing what you say you will do when you say you will do it; being answerable or accountable for something that is within your own power, control or management.
  • acting in an impartial manner.
  • guarding confidential information such as information on laptop computers against theft.
  • performing professional duties in accordance with relevant laws, regulations, and technical standards.

Answer :doing what you say you will do when you say you will do it; being answerable or accountable for something that is within your own power, control or management.

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

68. Which of the following CANNOT be accepted as ethical in advertising?


Options are :

  • Advertisement should contain true and honest information of the product or service.
  • Advertisement can be deceptive.
  • Advertisement should not exploit emotions.
  • Advertisement should respect human values.

Answer :Advertisement can be deceptive.

69. RBI issued Fair Practices Code for Lenders on May 5th 2003, which was made applicable to all scheduled commercial banks and financial institutions excluding -


Options are :

  • RRBs
  • LABs
  • Both a and b
  • Applicable to all.

Answer :Both a and b

70.Which one of the following ethics-related actions by management is least effective in encouraging acceptance by employees of an organization's code of conduct?


Options are :

  • Management follows ethical principles in decisions made on behalf of the organization.
  • Management appoints an ethics officer to monitor and report to management on employee compliance.
  • Management keeps promises and commitments made to employees, customers and vendors.
  • Management supports employees in adhering to ethics standards.

Answer :Management appoints an ethics officer to monitor and report to management on employee compliance.

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

71.Which of the following topics is not a subject to include in training about a company's ethical standards of behavior?


Options are :

  • Standards for interpersonal behavior within the company.
  • Dissemination and understanding of the company core values.
  • How to apply theoretical core values into real life situations.
  • How to read a financial statement to be informed about company financial matters.

Answer :How to read a financial statement to be informed about company financial matters.

72.Which of the following is not a benefit that will result when a company invests in efforts to create a values-based organizational culture?


Options are :

  • Better teamwork
  • Less fraud through a sense of ownership and identification with the company
  • Lower government taxes because of aggressive and spirited defense of the company towards tax authorities by motivated employees.
  • Higher levels of productivity through motivated, engaged employees

Answer :Lower government taxes because of aggressive and spirited defense of the company towards tax authorities by motivated employees.

73. Brief guidelines of RBI’s Fair Practices Code for Lenders include:


Options are :

  • Applications for loans and their processing
  • Loan appraisal and terms/conditions
  • Disbursement of loans including changes in terms and conditions
  • all of the above

Answer :all of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

74. Which is the unethical practice in marketing of bank products or services?


Options are :

  • Aggressive selling with discounts to select customers
  • Selling products without explaining underlying risks
  • Not understanding customer’s current or potential need
  • All of the above

Answer :All of the above

76.Which of the following statements is a responsibility of a banker regarding the "Integrity" standard of ethical conduct?


Options are :

  • To refrain from using confidential information for unethical or illegal advantage.
  • Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.
  • Perform professional duties in accordance with relevant laws, regulations, and technical standards.
  • Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

Answer :Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

77. Bank Employees are always advised to follow Code of Conduct laid down by the Bank. Abuse of official position for personal gains or providing gains to friends, family members and others with selfish motive amounts to violation of employee’s obligation to the Bank. Some of the examples of abuse of power can be-


Options are :

  • Bank employee goes for a personal travel and claims reimbursement as official travel
  • Use of official resources for personal use
  • False claims beyond the fixed perquisites
  • All of the above.

Answer :All of the above.

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

78.Which of the following statements is not a responsibility of a banker regarding the "Credibility" standard of ethical conduct?


Options are :

  • To disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.
  • To disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.
  • To communicate information fairly and objectively.
  • To recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

Answer :To recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

80. Bribes refer to -


Options are :

  • paying money or gift to a person with a motive of getting some favor done.
  • paying money or gift to a person with motive of getting banking business.
  • paying money or gift to a person with the aim of getting faster promotion.
  • paying money or gift to a person with the motive of helping a needy customer.

Answer :paying money or gift to a person with a motive of getting some favor done.

81. Which of the following will NOT come under Sexual Harassment at Banks?


Options are :

  • Physical contact.
  • Showing pornography; and
  • Any other unwelcome physical, verbal or non-verbal conduct of sexual nature.
  • Asking colleague for a cup of Coffee.

Answer :Asking colleague for a cup of Coffee.

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

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


Options are :

  • communicating both good and bad news; not just telling your superiors what they want to hear.
  • being free from personal feelings or prejudice, basing analyses and decisions on the facts alone and basing a judgment on an established set of criteria.
  • communicating information fairly and objectively.
  • acting in an impartial manner; being open-minded, tolerant and accepting; being free from injustice.

Answer :acting in an impartial manner; being open-minded, tolerant and accepting; being free from injustice.

83.When is it appropriate to communicate potential ethical issues to authorities or individuals not employed or engaged by your organization?


Options are :

  • You have escalated the issue, as directed by company policy, but are not satisfied with the company's response.
  • Your immediate supervisor is involved and you are concerned about potential negative consequences for yourself if you follow established company policy.
  • Your immediate supervisor, who is aware of the issue but is not involved, does not want to take any action because he is concerned about potential negative consequences for himself if the matter is addressed.
  • You believe there is a clear violation of the law.

Answer :You believe there is a clear violation of the law.

84.What are the four standards can be expressed as ethical conduct by a banker ?


Options are :

  • Competence, Confidentiality, Objectivity and Responsibility
  • Fairness, Confidentiality, Integrity and Credibility
  • Competence, Confidentiality, Integrity and Credibility
  • Honesty, Fairness, Objectivity and Responsibility

Answer :Competence, Confidentiality, Integrity and Credibility

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

85.In accordance with Ethical Professional Practice, a banker who fails to perform professional duties in accordance with relevant standards is acting contrary to which one of the following standards-


Options are :

  • Competence.
  • Confidentiality.
  • Integrity.
  • Credibility.

Answer :Competence.

86.According to Ethical Professional Practice, a member has a responsibility to recognize professional limitations. Under which standard of ethical conduct would this responsibility be included?


Options are :

  • Competence.
  • Confidentiality.
  • Integrity.
  • Credibility.

Answer :Competence.

87.If a banker has a problem in identifying unethical behavior or resolving an ethical conflict, the first action (s)he should normally take is to


Options are :

  • Consult the CMD.
  • Discuss the problem with his or her immediate superior.
  • Notify the appropriate law enforcement agency.
  • Resign from the bank.

Answer :Discuss the problem with his or her immediate superior.

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

88.Ethical Professional Practice requires a banker to follow the established policies of the organization when faced with an ethical conflict. If these policies do not resolve the conflict, the member should


Options are :

  • Consult the CMD immediately.
  • Discuss the problem with the immediate superior if (s)he is involved in the conflict.
  • Communicate the problem to authorities outside the organization.
  • Contact the next higher managerial level if initial presentation to the immediate superior does not resolve the conflict.

Answer :Contact the next higher managerial level if initial presentation to the immediate superior does not resolve the conflict.

89.In which situation is a banker permitted to communicate confidential information to individuals or authorities outside the bank?


Options are :

  • There is an ethical conflict and the board has refused to take action.
  • Such communication is legally prescribed.
  • The banker knowingly communicates the information indirectly through a subordinate.
  • Another banker from other bank asked personal details of a customer.

Answer :Such communication is legally prescribed.

90.Which ethical standard is most clearly violated if the banker knows of a problem that could mislead users but does nothing about it?


Options are :

  • Competence.
  • Legality.
  • Credibility
  • Confidentiality.

Answer :Credibility

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

91.Sheila is a financial manager who has discovered that her company is violating environmental regulations. If her immediate superior is involved, her appropriate action is to


Options are :

  • Do nothing since she has a duty of loyalty to the organization.
  • Consult the audit committee.
  • Present the matter to the next higher managerial level.
  • Confront her immediate sup

Answer :Present the matter to the next higher managerial level.

92.Integrity is an ethical requirement for all bankers. One aspect of integrity requires


Options are :

  • Performance of professional duties in accordance with relevant laws.
  • Avoidance of conflict of interest.
  • Refraining from using confidential information for unethical or illegal advantage.
  • Maintenance of an appropriate level of professional expertise.

Answer :Avoidance of conflict of interest.

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