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Welcome to your Principles And Practices of Banking Set-01 (100 MCQ)- JAIIB

1. 
If a banker allows an advance by keeping 25% margin and the amount of loan is Rs.1 lac, the value of security would be

2. 
Collateral security & margin in loan to agriculture exempted for loan

3. 
Which of the following is the regulator and supervisor of depositories

4. 
What is the maximum extent of investment in plant & machinery for MSE ancillary units

5. 
The primary dealers deal mainly with which of the following

6. 
A firm has been allowed demand loan but it has not carried any operations in the account after disbursement of the full amount. What is the limitation period for this demand loan

7. 
Inspection and processing fee in case of priority sector can be recovered if the amount of advance is

8. 
Which of the following expansion does match to the abbreviation

9. 
Whenever RBI wants to reduce the liquidity in the banking system it can resort to which of the following

10. 
Deposits and advances of a bank branch have declined and the management of the bank wants to know the reasons for the same. This will fall under the purview of

11. 
Federal reserve Board is the regulator of banking system in

12. 
A loan secured by mortgage of immovable property is repayable on demand. The period of limitation in this case will be

13. 
Lahiri Committee Recommendation relate to which of the following

14. 
Depository receipts are traded at

15. 
Mr. Akash Khanna is having his personal saving account with United Bank’s Chandigarh branch. He is also the sole trustee of Khanna Charitable Trust and operates the account of the trust which of also maintained with the bank. In connection with an important personal work he proposes to proceed abroad for 6 months and seeks your guidance for smooth operations in the accounts

16. 
The process of segregation of ownership and trading rights of the members in a stock exchange is called

17. 
What is the maximum extent up to which the foreign institutional investors can invest in the stock exchanges in India

18. 
The _____ shares are the shares on which the dividend accumulates if it remains unpaid for a particular year

19. 
If a bond is issued with the provision that the investor has option to replace the bond with equity at a fixed price, it is called

20. 
Which of the following paves the way for listing and trading of the issuer company’s securities. Whose securities are already not listed on the stock exchange

21. 
. When a company issues shares to a select group of investor which is neither a public issue nor a rights issue, it is called

22. 
Which of the following is not correct in respect of targets within priority sector

23. 
The concept of ‘discovered price’ is used, in the context of

24. 
. In which of the following types of fund, the investment is made exclusively in govt. securities

25. 
In the ______, the subscription and repurchase is available on a continuous basis

26. 
The legal set up of a mutual fund is in the form of a a. Joint stock company

27. 
When investment is made in other schemes of the same or different mutual funds, such fund is called

28. 
Which of the following statement is correct regarding premium on life insurance policies

29. 
Which of the statement is correct

30. 
Which of the following transactions is backed by a letter of credit

31. 
Which of the following guarantees, is not a financial guarantee

32. 
The cases of deceased depositors where the claims have been received and are pending beyond the stipulated period are required to be reported to which of the following

33. 
. Which of the following can be taken as part of Off-balance sheet items

34. 
Sales of an MSE unit for the previous year were Rs.200 lac. These are projected at Rws.300 lac for next year. As per Nayak Committee, the level of minimum bank working capital limits to be sanctioned would be

35. 
A letter of credit is defined in which of the following

36. 
The forfeiter is an intermediary between

37. 
The process of maintenance of account books, discounting of bills and collection of bills on due date is called by a person other than by the seller

38. 
In a factoring transaction, where the factor retains the right to recover the amount from seller, if payment is not recovered from the buyer of goods, is called

39. 
Credit risk does not take form of

40. 
Credit risk emanates from a bank’s dealing with

41. 
. Market risk takes the form of which of the following

42. 
Under Basel -2, the supervisory review process is covered by

43. 
The securitization transactions are covered under _____risk, in the Basel-2 framework

44. 
A bank has risk weighted assets of Rs.1000 cr and it has undisclosed reserves of Rs.30 cr. What is the maximum amount of such reserves that can be included Tier-2 capital

45. 
A bank has revaluation reserves of Rs.300 cr what amount can be included in the Tier 2 capital

46. 
Subordinated debt can be included in Tier-2 capital fund, only where it is with an original maturity of

47. 
. Bank – B has subordinated debt with remaining maturity of 17 months. These ne included in Tier-2 capital fund at ______discount

48. 
Bank-A has subordinated debt of original maturity of 7 years and remaining maturity period of 8 months. If the value of such debts is Rs.100 cr, what amount will be taken in Tier-2 capital fund

49. 
Which of the following is not part of operational risk under Basel-2 framework

50. 
Bank A and Bank B have been combined into a single bank. Where bank A survived and Bank B lost its corporate identity. This is called

51. 
Fair Practice Code for lenders is a set of codes which banks are required to follow while dealing with borrowers. This code has been on the insistence of Indian industry after notification of which of the following

52. 
As per fair Practice Code for lenders, bankers should be constructive with a view to taking care of any lender-related genuine difficulty that borrower may face, for loans up to Rs.____

53. 
As per fair Practice Code for lenders, if a bank receives request from borrower for transfer of his loan account to another bank, the bank is to convey its consent objection within ______ from date of receipt of request

54. 
The Banking Codes and Standards Board of India was constituted on the recommendations of a Committee under Chairmanship of Sh_____

55. 
A bank has acquired an immovable property but it has not been able to dispose it of within 7 years. What remedy is available to the bank

56. 
Regional rural banks re licenced for banking business under

57. 
To take care of temporary liquidity problems of central and state govt., what kind of loan is given by RBI

58. 
Section 7(1) of RBI Act concerns with which of the following aspects

59. 
If an Indian bank has place of business in one state only and has office in Mumbai or Kolkata, what is true regard to the amount of minimum capital

60. 
What is the amount of ceiling on payment of brokerage or commission or discount, or remuneration on sale of shares by a banking company

61. 
What %age of directors in a bank should have specialized knowledge

62. 
When a chairman of managing director is removed from his post, he ceases to be a director and cannot be appointed as director during the next ______years

63. 
What is the requirement u/s 25 of b R Act, to be fulfilled by the banks in India

64. 
Which of the following is not a correct statement

65. 
Where a bank is prohibited to accept the deposit despite prohibition for not accepting the depositing the deposits, what is the punishment

66. 
A banking company fails to produce books, accounts and documents which it is bound to furnish under the provisions of RBI Act, what is the penalty as per Banking Law Amendment Act 2012

67. 
A cheque of Rs.10000 issued by Ram Chander, one of your account holders, in favour of Shivaji is stolen by one RadheyShyam who forges Shivaji’s signatures and endorses it in favour of Ganeshilal, who obtain the payment from the bank. In this situation what would be bank’s position

68. 
. Your customer issues a cheque for Rs.10000 in discharge of his liability towards Mr. Shayam Prasad or order, who endorses the same in favour of Mr. Sita Ram In blank. This cheque

69. 
A saving bank customer of Modern Bank issues a chaque of Rs.1500 in favour of M/s swastic Enterprises or order. The cheque is paid by the bank on presentation through clearing with endorsement from the payee as ‘Svastika Enterprises’. The endorsement is also confirmed by the collecting bank. The drawer claims that the payment has not been made in due course and claims refund of the amount

70. 
A is holder of a cheque who endorses sans recourse to B and B to c and C to D who endorses it to E. cheque is dishonored

71. 
What is true with regard the liability of a director of a company , in case of dishonor of cheque, issued by a company

72. 
A customer of your branch Sham, deposits a cheque, which he steals from another person named Sham. Your branch collects this cheque (on which te customer is having a defective title) without being aware about the defect

73. 
. If the holder of a cheque removes the crossing in such a way so that the same is not easily detectable (with naked eye) and get the payment after presenting it at counter of the drawee bank will get protection u/s … of NI Act

74. 
What is the amount of bank draft that can be issued by banks in cash under KYC directives of RBI

75. 
What is the time period during which the record of transactions is to be kept by banks under KYC directives

76. 
Popular Bank sanctioned a loan in the name of B, which he had not been repaying. The bank has come to know that B is having an FDR account with national Bank in the same city. At the time of maturity of the term deposit , letter is received by national Bank from Popular Bank to remit money to credit in the loan account

77. 
Mr. X is maintaining few accounts with Popular bank with its Trichur branch. The bank branch receives an attachment order. Which of the following accounts, will be attached by the order

78. 
The net asset value of a mutual fund investment is calculated as under

79. 
A cheque drawn by a customer is presented for payment after a Garnishee order has been served on the account, the cheque will be returned with the reason

80. 
A bank authorized by the issuing company to issue GDR against issue of foreign currency convertible bonds or ordinary shares for the issuing company, is called

81. 
Universal Bank has granted cash credit limit of rs.10 lac to M/s Kala traders, a partnership firm. The account is showing a debit balance of rs.9.50 lac when the notice is received about the insolvency of one of the partners, which among the following steps should be initiated by the bank to safeguard its interest

82. 
A partnership firm of XY&Z has been adjudged insolvent and its loan account is showing a debit balance of Rs.3 lac. Its partner Y is having a saving bank account in which there is balance of Rs.1.50 lac

83. 
The provisions in respect of removal on ceiling on borrowing powers of the Board of a public limited company or subsidiary of a public limited company, are given in Section … of the Companies Act 2013

84. 
A cheque issued by a director of a Limited Company is presented for payment after death of the director which the bank pays, But the company raises the claim on the plea that bank cannot pay such cheque after death of the director

85. 
In case of deferred payment guarantee. Normally _____ advance payment is made by the buyer of machinery to the supplier of the machinery, which is treated as margin by the bank

86. 
Current assets of a company are Rs.800 lac and other current liabilities Rs.80 lac.. if the amount of net working capital is Rs.170 lac what will be amount of excess borrowing, as per 2nd method of lending

87. 
Your branch has sanctioned cash limit of Rs.12 lac to M/s United Pharmacy. As at the close of July 31, it has been carrying stocks worth Rs.9 lac, sundry creditors of Rs.3 lac and book debts of Rs.6 lac. Bank has prescribed a margin of 25% on stocks and 30% on book debts, what is the maximum amount that can be withdrawn in the cash credit limit

88. 
The no.of which component of Central Board of Directors of RBI, does not match

89. 
In the balance sheet of a bank, the off-balance sheet items are shown

90. 
To make the cost of credit costlier, which of the following is done by RBI

91. 
Foreign banks are to deposit in SEDF with SIDBI, the shortfall in respect of

92. 
The issue of and servicing of govt. debt, is management by

93. 
Which of the following statement is correct in the context of red herring prospectus

94. 
What is the maximum extent up to which a single investor can hold shares in an Indian stock exchange

95. 
______ is a tax levied on all transactions code on the stock exchange at rates prescribed by Central Govt. from time to time

96. 
Who approves the appointment of the Chief Executive officer (CEO) of a private bank

97. 
Which of the following organizations maintain the shares of companies in dematerialization format

98. 
Which of the following Act, is meant to regulate the Indian Banking System

99. 
A _______ is a type of transferable financial instrument which is traded at local stock exchange of a country but represents a security (usually, in the form of equity) which is issued by a foreign publicly listed company

100. 
The Urban Cooperative Banks are regulated by

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