JAIIB - Principles and Practices of Banking Mock Tests Set 9

Integrative Growth is defined as...... 


Options are :

  • Identify opportunities for further growth within the existing businesses
  • Identify opportunities to build or acquire businesses related to the existing businesses
  • Identify opportunities to add attractive businesses, unrelated to the existing businesses
  • None of the above

Answer :Identify opportunities to build or acquire businesses related to the existing businesses

Introducing additional brands in an existing product category is called as ...... 


Options are :

  • Line extension
  • Brand extension
  • Multi brands
  • New brands

Answer :Multi brands

When a manufacturer of a products keeps its price at a higher level considering that the buyers would perceive the product to be of better value and quality, this called ________ pricing 


Options are :

  • Geographical pricing
  • Promotional pricing
  • market skimming pricing
  • psychological pricing

Answer :psychological pricing

Individual customers are covered by ...... of CIBIL. 


Options are :

  • Personal Credit Bureau
  • Consumer Credit Bureau
  • Retail Credit Bureau
  • Commercial Credit Bureau

Answer :Consumer Credit Bureau

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Buy Now – Pay Now” is commonly used for ...... 


Options are :

  • Debit Cards
  • Vault Cards
  • Credit Cards
  • E-purse

Answer :Debit Cards

Under forfaiting, the exporter is able to transfer ...... risk. 


Options are :

  • Credit
  • Political
  • Interest Rate
  • All the above

Answer :All the above

A formal and mutually agreed commercial collaboration between Companies is known as  


Options are :

  • Merge
  • Amalgamation
  • Strategic Alliance
  • Subsidiary

Answer :Amalgamation

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Mandate given by the illiterate account holder should be 


Options are :

  • Attested by manager who confirms and certifies thee same
  • Attested by Notary public or Magistrate
  • It is enough if we ask for a Mandate letter with LTI which has to be attested an authorised official.
  • We cannot accept a mandate from an illiterate customer at all

Answer :Attested by Notary public or Magistrate

A joint account is operated by A and B as both or survivor. A dies and a cheque signed by A and B are presented for payment. The cheque


Options are :

  • Can be paid.
  • Can be paid after getting confirmation from B.
  • Can be paid after getting the consent of the legal heirs of A.
  • None of the above

Answer :Can be paid after getting confirmation from B.

Which of the following is the internal factor influencing pricing? 


Options are :

  • Price elasticity of the demand of the product
  • Competitors’ policy
  • Bargaining power of suppliers
  • Social considerations

Answer :Price elasticity of the demand of the product

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

The  firewall  technology  is  not  used  in  connection  with  ......  (i)  Physical  safety,  (ii)  authorised access, (iii) Protection of computer network from intrusion by hackers 


Options are :

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

Answer :Only (i) and (ii)

Encoding the contents of a message in such a way that hides the contents from outsider is not called as ...... (i) encryption, (ii) decryption, (iii) cryptography

 


Options are :

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

Answer :Only (ii) and (iii)

The negotiable financial instrument which is traded on a stock exchange of another country but represents security issued by foreign listed company is called: 


Options are :

  • buyers credit
  • depository receipt
  • cross listed stock
  • participatory note

Answer :depository receipt

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Market  research  is  useful  for  ......  (i)  Deciding  proper  marketing  strategies,  (ii)  Deciding  the selling price, (iii) Choosing the right products 


Options are :

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

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

Banking means acceptance of _____ for the purpose of lending and _____u/s _____ of Banking Regulation Act: 


Options are :

  • Deposits, investments, 6 (c)
  • Deposits, investments, 5 (b)
  • Deposits, investments, 5 (c)
  • Deposits, investments, 5 (d)

Answer :Deposits, investments, 5 (b)

For the purpose of Asset Classification, what is the status of accounts, where outstanding balance inthe principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest debited during the same period?


Options are :

  • These accounts should be treated as 'out of order'
  • These account should be treated as NPA
  • These accounts will be treated as NPA only if these remain out of order for 6 months.
  • These accounts will be treated as Sub standard. & e. None of these

Answer :These accounts should be treated as 'out of order'

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Which of the following represents feature of Deferred Payment Guarantee?


Options are :

  • It is a method of financing long term debt just like cash credit but without directly extending the loan. In
  • DPG, the advantage to the buyer of machinery is that he benefits to the extent of savings in interest charges accruing on account of opting for equipment financing plus the guarantee charges paid to the bank.
  • For the buyer of the plant and machinery, DPG serves the same purpose as term loan.
  • Deferred Payment Guarantee is a Contingent Liability and therefore can not be treated as method offinancing long term debt.

Answer :For the buyer of the plant and machinery, DPG serves the same purpose as term loan.

A cheque drawn on your branch has been presented for payment. The cheque is partly written in English, partly in Hindi and partly in the local language of the area in which the branch is located. If the cheque is otherwise in order, what would you do?


Options are :

  • The cheque can be paid as a cheque can be written in any language.
  • The cheque could have been paid if it was either in Hindi or in English or a combination of both.
  • The cheque can not be paid as it is written in vernacular language.
  • The cheque can be paid as a cheque can be written in English, Hindi or vernacular language of the area where the buying branch is located.

Answer :The cheque can be paid as a cheque can be written in English, Hindi or vernacular language of the area where the buying branch is located.

IFSC or Indian Financial System Code is a 11 digit alpha-numeric code that uniquely identifies a bank branch participating in the NEFT system. How many characters are alpha and how many characters are numeric in the code?


Options are :

  • first 4 alpha characters representing the bank, and the last 6 numeric characters representing the branch and 5th character is 0.
  • first 4 alpha characters representing the branch and the last 6 numeric characters representing the bank and 5th character is 0.
  • first 5 alpha characters representing the bank, and the last 6 numeric characters representing the branch.
  • first 5 alpha characters representing the bank, and the last 5 numeric characters representing the branch and 6th character is 0.

Answer :first 4 alpha characters representing the bank, and the last 6 numeric characters representing the branch and 5th character is 0.

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

What will be the Current Ratio if the following figures have been taken from the balance sheet of a firm? Stock 150, Debtors 175; Cash 75; preoperative expenses 50; sundry creditors 200; Bank borrowing for working capital 100; Reserves 100.


Options are :

  • 1.33:1
  • 1.5:1
  • 1:1
  • 1.2:1

Answer :1.33:1

Which of the following is not considered as Agricultural advance (1) Advance to farmer for purchase of farm machinery (2) Loan to marginal farmer for purchase of agri land (3) Agri clinic and Agri Business Centre (4) Loan to dealer in poultry feed and cattle feed.


Options are :

  • Only 4
  • Both 1 and 3
  • 1,3, and 4
  • All of these

Answer :Only 4

Which of the following is correct regarding Operating Hours of NEFT?


Options are :

  • NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.
  • NEFT operates in batches of 2 hours each – there are seven settlements from 9 am to 5 am on week days and five settlements from 9 am to 1 pm on Saturdays.
  • NEFT operates in batches of one hour and two hour – there are nine settlements from 9 am to 5 am on week days and three settlements from 9 am to 12 pm on Saturdays.
  • None of these

Answer :NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Balance Sheet of a firm indicates which of the following?


Options are :

  • Profit or Loss over a period
  • Financial position of the unit over a period
  • Financial position of the unit as on a particular date
  • Position of assets and liabilities over a period of time

Answer :Financial position of the unit as on a particular date

In the case of a fixed deposit in the name of an individual, in which nomination has been made, which of the following can be done by nomine the depositor dies before maturity of term deposit?


Options are :

  • He can raise loan against FDR to meet the requirement of legal heirs
  • He can make premature renewal of FDR
  • He can take premature payment of FDR
  • He can add the name of legal heirs in the FDR

Answer :He can take premature payment of FDR

As per RBI guidelines, for depositing cheques for collection with the bank, both the drop box facility and the facility for acknowledgement of the cheques at regular collection counters should be available to the customers and no branch should refuse to give an acknowledgement if the customer tenders the cheques at the counters. Further, in the context of customer awareness in this regard, banks should invariably display a notice that "Customers can also tender the cheques at the counter and obtain acknowledgment on the pay-in-slips". The above message is required to be displayed at which place in the branch?


Options are :

  • Outside the main entrance of the branch
  • On the cheque drop-box itself
  • In the customer lobby
  • Any one of the places mentioned

Answer :On the cheque drop-box itself

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Micro (Manufacturing) Enterprises are those having original investment in plant and machinery up to_______:


Options are :

  • Rs. 25 lakh
  • Rs. 30 lakh
  • Rs. 35 lakh
  • Rs. 40 lakh

Answer :Rs. 25 lakh

Small (Manufacturing) Enterprises are those engaged in the manufacture, processing orpreservation of goods and whose investment in plant and machinery [original cost excluding land andbuilding) does not exceed ____ 


Options are :

  • Rs 1 crore
  • Rs 2 crore
  • Rs 2.5 crore
  • Rs 5 crore

Answer :Rs 5 crore

Small (Service) Enterprises are enterprises engaged in providing / rendering of services and whose investment in equipment (original cost excluding Land and Building and furniture, fittings and other items not directly related to the service rendered) does not exceed :


Options are :

  • Rs 1 crore
  • Rs 2 crore
  • Rs 2.5 crore
  • Rs 5 crore

Answer :Rs 2 crore

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

The loans sanctioned by banks for housing projects exclusively for the purpose of construction of houses for economically weaker sections and low income groups, the total cost of which does not exceed Rs. ___ lakh per dwelling unit. For the purpose of identifying the economically weaker sections and low income groups, the family income limit of Rs. ___ lakh per annum, irrespective of the location, is prescribed 


Options are :

  • 5; 1
  • 10; 2
  • 15; 5
  • 20; 10

Answer :10; 2

Bank credit to MFIs extended for on-lending to individuals and also to members of SHGs / JLGs will be eligible for categorisation as priority sector advance under respective categories viz., Agriculture, Micro, Small and Medium Enterprises, and 'Others', as indirect finance, provided not less than ____ percent of total assets of MFI (other than cash, balances with banks and financial institutions, government securities and money market instruments) are in the nature of “qualifying assets”. In addition, aggregate amount of loan, extended for income generating activity, should be not less than ____ percent of the total loans given by MFIs. 


Options are :

  • 75 ; 50
  • 80; 50
  • 85; 50
  • 90 ; 60

Answer :85; 50

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