Home Mock Test JAIIB Mock Test PPB Mock Test (100 MCQ) Set-02- JAIIB

PPB Mock Test (100 MCQ) Set-02- JAIIB

PPB 100 SET-02

Welcome to your Principles & Practices of Banking(100MCQ) SET-02 - JAIIB

1. Banking operations in India are governed mainly by ________ Act and ______ Act and the regulator of banks _____.
2. Banking means acceptance of _____ for the purpose of lending and _____u/s _____ of Banking Regulation Act
3. Which of the following is helping the banking system in sharing the information about the credit history of households
4. A bank purchases a commercial complex from XYZ in realization of loan. What is the disposal period RBI discretion to extend the said disposal period u/s ______ of Banking Regulation Act
5. Private banks and foreign banks are regulated by ______ Act for their constitution Act and _____ Act for their business of Banking
6. Which of the following cannot be included in value added services that are offered under wholesale banking by banks
7. . U/s 22 of RBI Act, RBI (which of the following is not correct)
8. Govt. regulates the banking system by affecting the decision making by RBI since (a) Govt. holds the entire share capital of RBI (b) Govt. can give direction to RBI u/s 7 (1) of RBI Act. (c) Govt. has absolute powers over the banking system
9. A ______ is a type of transferable financial instrument traded on a local stock exchange of a country but represents a security issue by a foreign publicly listed company
10. Any transfer of shares in a banking company which exceeds ____ % of paid up capital of the bank requires acknowledgment by _____ before registration of in the books of the company
11. Authorized capital of a nationalized bank cannot be less than Rs.______ cr
12. Customer is defined as per provisions of
13. A bank which is authorized by the issuing company to issue depository receipts against issue of foreign currency convertible depository receipts against issue of goreign currency convertible bonds or ordinary shares of the issuing company, is called
14. Bank’s obligation to pay the cheque drawn by the customer u/s 31 if NI act exists, In which of the following circumstances
15. Bankers’ obligation to maintain secrecy of customer’s account is (which of the following is not correct):
16. Issue of securities in the primary market is subject to fulfillment of a no. of requirement stipulated by
17. Definition of the term ‘banking’ is as per Section 5 (b) of the which of the following
18. U/s 171 of Indian Contract Act, the general lien is available to (a) banker (b) wharfingers (c) factors (d) attorneys of High Court provided there is no agreement to the contrary
19. Which of the following statement regarding a broker is not true
20. First item on the debit side of the account is discharged reduced by the first item on the credit side in the chronological order as per which of the following
21. Which among the following is not an essential features of a mandate
22. A bond issued at a discount and repaid at its face value is called, a _______ bonds
23. An attachment order of Rs.40000 on a partnership firm is received; whose current account shows a balance of Rs.4000. The individual accounts of the partners A,B and C are showing credit balance of Rs.20000, Rs.17000 and Rs.1250 respectively. To meet the payment stated in the order, how much amount will be payable from A’s account
24. Your branch receives a garnishee order. It attaches all sums owning or accruing due to Mr. Ashok and Mr. Anand. There is no account at the branch in the joint names of Mr. Ashok and Anand. But they maintain their individual accounts. Under these circumstances
25. Security receipt is issued by the _______ to a qualified institutional buyer in pursuance to a securitization program
26. Which of the following instrument has three parties i.e.drawer, payee and drawee, to the instrument
27. Which of the following is not a feature of an ‘account payee crossing’
28. Which of the following is not a function of SEBI
29. Which among the following is a false statement
30. Which of the following endorsements match their description
31. The mechanism for pooling resources from the public by issuing units to them and investing the funds, so collected in securities in accordance with objectives disclosed in an document, is called
32. A cheque is a dated January 12,2016 and presented for payment by the payee on April 13,2016. The paying bank returns the cheque stating that it is stale. Which among the following is not correct in this connection
33. A post-dated cheque is returned by the bank without payment because, the bank is exposed to the following risk (a) customer dies before date of the cheque (b) if garnishee order is received before date of the cheque (c) if payment is stopped by the drawer before date of the cheque (d) if another cheque is returned for insufficiency of funds, after date of the post-dated cheque
34. In a gilt fund, the mutual funds make investment in
35. Bank B made payment of a cheque with following endorsements. In which of these cases the payment will not be deemed to be a payment in due course
36. Bank B makes payment of the following cheque. For which of these the bank will not get protection
37. For collection of which of the following, the collecting bank will get protection
38. The legal status of a mutual fund is in the form of a
39. Which of the following is not correct in the context of dishonor of cheque for insufficiency of funds
40. In which of the following situations, the bank can favorably accommodate the customer
41. Who fixes the insurance premium rates for some of the general insurance products
42. Obtaining introduction from the existing customer for opening a new deposit account is essential (a) to get protection u/s 131 of NI Act against conversion (b) to prevent money laundering (c) to comply with KYC directives of RBI
43. Which of the following correct with regard to a minor
44. Insurance policy taken by a business firm on the life of very important person to project the firm against financial loss, is called
45. In the following situations, which decision taken by a bank is not correct, in case of an insolvent customer
46. To address customer grievances in respect of insurance contract on personal lives, there is an institution called_______:
47. Karta in a HUF does not have which of the following authority
48. Which of the following is not a correct statement in the context of registration of a partnership firm
49. The minimum capital to start a new Insurance company in India is
50. Where a minor is admitted for benefit, in an existing firm (a) he has the authority to become partner on attaining majority (b) he has the right not to become partner on attaining majority (c) if he remains silent regarding whether to be partner of not to be, he is deemed to have not become partner (d) if he chooses to be a partner his liability begins from date of his becoming full-fledged partners
51. A bank has to give loan to a company for which the company has given certified copy of Articles of Association . bank has doubt that the Articles of Association stands amended and the company has not given the amended copy. What source can be used by the bank to have copy of the amended documents
52. Borrowing powers of the Board of Directors of a company (which is not true)
53. If there is default of repayment by the buyer in case of factoring and the factor is able to recover the amount from the seller, it is called
54. . Bank-B is maintaining account of a sports club which is operated by its Secretary and President jointly. Bank receives a notice (on Feb 10,2016) of death of the President on Jan 31,2016. Two cheques of Rs.5000 each dated Jan 12, 2016 and dated feb 02, 2016 are presented for payment on Feb 24,2016. The bank shall
55. . A charitable trust has a current account with your bank and now it wants to raise a loan for furtherance of its activities. The loan can be allowed
56. When the seller of machinery or other capital equipment is agreeable to extend long term credit to the buyer of the machinery, on the guarantee of a bank, such guarantee is called
57. A customer of the bank has written a will and he has died. The execution of this Will will be carried by
58. Which of the following statements can be considered to be true
59. The Basel Committee on Banking Supervision, is a committee that was constituted by
60. Which is not correct with regard to rate of interest in NRI opened accounts
61. In which of the following circumstance, the banker customer relationship does not come to an end
62. X is maintaining a SB account with Popular Bank and wrongly credited an amount of Rs.12500 to his account. This was entered in his pass book also. Later on when the mistake came to bank’s notice it debited customer’s account but did not inform the customer. Meanwhile the customer issued a cheque on the basis of this balance which was dishonoured by the bank
63. 2nd Pillar in Basel 2 relates to
64. Which among the following statements is true in connection with customer account
65. RBI conducts on site inspection and off-site supervision of Indian banks and based on its finding. RBI rates the banks on important parameters called ________. The word A of these parameters stands for _______:
66. As per Basel 2 recommendations, the Tier 3 is limited to ___ % of a bank’s Tier I capital that is required support market risk
67. Mr. K had deposited a sum of Rs.2 lac in his saving bank account. A letter is received from the local Police that Mr. K has been arrested for committing a fraud. A cheque of Rs.15000 has been received through clearing fin the account for payment, after receipt of notice from the police
68. X is issued a cheque of Rs.22000 payable to B or order. The cheque is misplaced and found by C. C forges B’s signatures and endorses in favour of D, who obtains payment from the bank
69. Market risk takes the form of (which one is not correct
70. A demand draft is purchased by P. After 5 days, P comes to the bank and requests the bank to stop the payment, as the DD is reported to have lost in transit
71. Which among the following is the objective of issuing KYC guidelines by RBI
72. In which of the following situations different partners of the combination remain separate entities
73. What is the objective of securitization of financial assets
74. The functions of purchase of receivable, maintenance of receivable ledgers and collection of dues on due date, under factoring becomes the function of
75. In addition to the normal services as defined in the Banking regulation Act, banks also undertake activities like project appraisal, underwriting of issue, technical know how etc. This business is called
76. A eCommerce transaction refers tpo exchange of information by way of ________. For selling and buying between the customer and the seller
77. Which of the following is not correct in respect of targets within priority sector
78. Two companies are merged. One of these is supplier of goods to the other. This merger is known as
79. Under Tandon Committee’s 2nd method of lending, the working capital margin i.e. net working capital should be
80. Which of the following is not a source of working capital for a manufacturing firm
81. Banking Codes and Standards Board of India, has been constituted as a
82. Computeration in banks can bring improvement in the area of (a) customer service (b) house-keeping (c) decision making (d) productivity. Which of these is corr4ect
83. Which of the following is not an advantage of the multi-user computer system through networking
84. In _______ each node is joined to the central node by a separate limk
85. In star topology for a local area network
86. In a ATM, the PIN
87. Cheque truncation can be done by (a) using image processing (b) using MICR data (c) sending by courier or speed post for early delivery
88. Spend now and pay later stands for
89. The decision support system makes use (a) query language (b) adhoc report generator (c) statistical analyzer (d) graphics
90. The cheque truncation can be done (A) by using MICR data (b) by sending chequesx courier (c) using imaging technology
91. . Compared to a manual system, the consequences of an error in a computerized system are more serious due to (A) errors being generated at high speed will involve higher cost to correct them (b) computer system processes more data (c) users of computer systems perceive the computer output to be always correct
92. Which of the following features do not match in case of goods and services, as a product
93. A restaurant provides food as well as service along with the infrastructure for use. This type of product can be classified as
94. A product means something that can be offered to satisfy a want or need which can be physical goods, services, persons, place, idea etc. Which of the following does not match
95. Amount is immediately recovered from the card holder online for the amount of card used, in case of
96. If there are declining sales leading to decilining profits and no possibility of increasing and improving them, which of the following strategy will be adopted by an organization
97. Which among the following is correct in the context of branding of products
98. A manufacturer of a consumer product keeps the pric4e of a new product at a substantially high and over a time period to reduce it when dthe demand reduces. Such pricing is called
99. Which among the following is a component of promotion mix (a) advertising (b) personal selling (c) public relations (d) sales promotion:
100. The system of marketing information is ______ that pertains to marketing



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