Principles & Practices of Banking – JAIIB

1. No person other than a bank is authorized to accept deposits in India, that are with draw able by ________ as per provisions of Section ______ of ______ Act:

2. Capital market is a market for:

3. Every banking companies uses the words ‘bank, banking or banker’ as part of its name as per provisions of section _______ of _______ Act:

4. Banks in India are allowed to undertake trending in the following u/s 6(1) of banking regulation Act:

5. A bond giving the investor the option to get the value of bond equal to an equity share, at a pre-detetmined exchange price, is called

6. Which category of banks are under dual control of Govt. and RBI:

7. Banking Regulation Act deals with (a) the regulation of business of banking companies (b) control over management of the banking companies (c) suspension and winding up of banking business (d) penalities for violation of provision of B R Act

8. Reserve bank of India has been constituted u/s ___ of RBI Act for (a) taking over the management of currency from the central Govt. (b) for carrying on the business of banking for general public (c) keeping reserves for ensuring the monetary stability:

9. Which of the following features is correct with regard to a Bond?

10. RBI undertakes banking business for Central Govt. u/s ________ of RBI Act. For State Govt., the banking business is done by RBI u/s 21A of _________ based on agreement:

11. A bank can hold as mortgagee, pledgee or absolute owner of shares of a company, maximum to the extent of:

12. Banks set up special branches for a focused attention that include (a) service branches (b) capital market branches (c) recovery branches (d) corporate branches:

13. The functions such as management, ownership and trading are segregated in case of a

14. Bank’s obligation to pay the cheque drawn by the customer u/s 31 of NI Act exists, in which of the following circumstances:

15. Under which of the following provisions of law, the disclosure of customers account information is allowed (which one is not correct):

16. A customer came to a bank branch and he forgot a packet containing some govt. securities for which he intended to raise a loan, which he proposes to get sanctioned next week. The relationship between bank and the party is that of:

17. Group insurance is a plan of insurance which provides life cover to a no. of persons under a single policy called ______ policy:

18. A company gives an undertaking to the bank that certain assets belong to the company and it will mot dispose of the assets or create any charge on the assets, without prior permission of the bank. It is known as:

19. Banker’s lies is not available in which of the following situations (a) the securities have been handed over by the customer for safe custody (b) documents submitted by the customer for specific purpose (c) the loan has not become due for payment as yet (d) securities are left by the customer with the bank, by mistakes:

20. The internationally between importer and exporter in case of forfaiting is called

21. Which of the following is not an important features of a power of attorney:

22. Mr. Ajay has been appointed an agent by agent by an importer Mr. Shanti Prakash to handle the goods at port and dispose off the same within a price range fixed by Mr. Shanti Prakash. But Mr. Ajay sells the goods at a price lower than the one indicated by Mr. Shanti Prakash. When this fact comes to the notice of Mr. Shanti prakash he cancels the sale contract. The payment is still to be received

23. Credit risk may not arise in which of the following

24. Your branch has received a garnishee order in the name of your customer having saving bank account, with following transactions. which among these is not subject matter of the garnishee order:

25. A negotiable instrument has the following combination of characteristics:

26. A bill of exchange which is drawn on a specific bank and is not payable otherwise than on demand, to bearer or to order, is called

27. 3rd Pillar in Basel 2 relates to:

28. Bank-b gets a cheque from its customer x. In the name of the payee. The words “pay to Mr. X account No.3252 0001 0081 3409 Bank A” is stared. It does not bear two parallel lines on its face:

29. Which of the following is not a feature of a not-negotiable crossed cheque:

30. Which of the following is not essential requirement for a person to be called holder in due course:

31. Which of the following falls in Tier II capital:

32. When a crossed cheque is paid by a bank across the counter (in cash), the paying bank is liable to:

33. A cheque is received for payment from X by Bank-B it is torn from two sides. Such mutilated cheque can be paid (which among the following is false):

34. Under credit risk management, the credit grading does not involve which of the following :

35. A cheque is altered and its payment has been made by the paying bank. In which of the following circumstance, the paying bank shall be liable:

36. Bank A has made the following payments. For which of these payments the bank will not be protected and can be asked to reverse the debit entry:

37. Which of the following is correct regarding CIBIL:

38. Bank B gets following cheques which it has paid (a) 1st cheque having amount written red ink and other particulars in blue ink (b) 2nd cheque with name of payee written in Devnagri and other particulars in English (c) 3rd cheque in which the amount is written with handwriting of the drawer and payee’s name written by the payee himself. Bnak will get protection for:

39. When a cheque is collected by a bank for its customer A who withdraws the money after collection and later on real A establishes that the cheque belonged him (real A) It is called

40. The banks and financial institution are required to fensure compliance of their obligation towards borrowers in appropriate and transparent manner. The code prepared for this purpose by RBI transparent manner. The code prepared for this purpose by RBI and adopted by banks is called

41. Which of the following is not a feature of a team deposit:

42. While opening a deposit account, the banks insist on certain documents so as to comply with KYC directives of RBI, Which of these document and its purpose does of match:

43. Introduction can be accepted for a new customer from (a) an existing customer having satisfactory conduct of account for at least 6 months (b) person like MPs or MLAs (d) another bank (e) as per KYC rules of RBI introduction is not mandatory.

44. In the context of ATM, a PIN is:

45. Which of the following is correct in connection with the deceased person’s account:

46. In a joint account in the name of X and Y, a request is received to substitute the name of X by Z, later on another request comes from Y and Z either to replace the name of Y with A or add the name of A, (which of the following is not correct)

47. Revolving credit is made available in which fo the following:

48. A partnership has two partners. The firm has total assets of Rs.25 lac and liabilities of 10 lac. Partner B has assets of Rs.10 lac and liabilities of Rs.12 lac. The creditors of the firm will be able to realize from the firm ______% of their dues:

49. An action of a partner is the action of the firm and binds all partners where (a) it is the usual course of business of the firm (b) in usual way of doing the business (c) as a partner, on behalf of the firm:

50. The maximum amount that can be transferred by an individual on national electronic funds transfer system is:

51. For which of the following types of companies, the word ‘limited is not required to be used

52. (a) Minimum no. of members in a private company is 2 (b) maximum no. of members ina public company is 50 (c) minimum no. of directors in a private company is 3 (d) maximum no. of direction in a public company is restricted to 12. Which of these is correct:

53. Whenever a company wants to obtain loan and for that purpose, creates charge on its assets, the registration of which of the following charges with RoC is not essential.

54. MSE Units Association is maintaining a current account with your bank which is operated By its President and Secretary singly . A letter which is received from each of them, not to pass the cheque signed by the other. Two cheques signed by each of them are received. What the bank shall do:

55. Account of a Trust is opened by the bank which has three trustees. Who shall operate this account?

56. X is appointed executor for the 0account of A. The account in the name of Executor (or Administrator) will be opened as:

57. ABC Limited, a company has gone in liquidation and Mr. X is appointed as Liquidator. He has opened a bank account. He sends a letter to the bank that he has to go abroad for 2 months and in his absence the account will be operated by his Secretary:

58. To wind up the affairs of a company, the person appointed by the Court is called

59. A foreign spouse of an Indian citizen is called

60. An NRE-RA account can be opened as:

61. In which of the following, joint accounts with residents can be opened by Non-Resident Indians:

62. For which of the following reasons, a bank can the account of a customer:

63. B was having an account with Universal Bank. Bank got confirmation from B for the balance in the account. Later on B brought to bank’s notice, a fact that two forged cheques have been debited to his account. Bank however claimed that the customer has already confirmed the balance.

64. Y, a customer of Bank-B used to handover cheques in his favour, for deposit in his account, to an employee of the bank, who withdrew the money of the cheque, from the drawer’s account maintained with that bank and misappropriated. When the fact came to notice of Y, he asked the bank to make good the loss, as the employee was on rolls of the bank. Bank refused to companies Y.

65. For the purpose of carrying on off-site supervision, RBI calls for important returns called_______:

66. U/s 38A of Banking Regulation Act when High Court orders liquidation of a bank, which among the following can be a liquidator:

67. X, a customer of popular Bank had deposited an amount of Rs.12500 in his saving bank account which was credited by the bank in the account of Mr. Y. The relationship between the bank and Y is:

68. An order cheque of Rs.55000 is issued by Mr. X in his account favouring M (a minor). Who approaches the bank cash payment.

69. X is issued a cheque of Rs.32000 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 presents the cheque for payment from the bank, but it is dishonoured

70. Mr. Z gets a demand draft issued from the bank in favour of his son, S, who is to visit another town in connection with some business purchases. He requests the bank to substitute the word’ order’ by bearer in the DD so that his son does not face any difficulty in the new town:

71. KYC guidelines have been issued by RBI, under which of the following:

72. Which of the following is not a feature ofa team deposit:

73. The receivables of various loans and obligation are put together and distributed amongst investors, in which of the following:

74. In order to obtain cash for its credit sales, the duly accepted domestic sale invoices are assigned by the seller in favour of a 3rd party. Such purchase of receivables by the said 3rd with or without recourse is called

75. Tele-banking facility is provided by banks through bank computers based on which of the following:

76. In eCommerce the consumer moves from a physical store in a market place to ________ :

77. Adjusted net bank credit is=:

78. For Indian banks including private banks, which of the following targets is not applicable:

79. What is the maximum loan that could be sanctioned to the borrower under retail trade in priority sector:

80. Net working capital stands for:

81. In the context of Nayak Committee’s turnover for working capital calculation fwhich of the following is correct:

82. Which of the following not a feature of a stand-alone computer system:

83. The _________ are the rules for communication between similar modules of processes, usually in different nodes.

84. A computer network spread over a span of large geographical area that normally uses telecommunication net work is called ______:

85. Major benefits of Centralized Business solutions or Core banking Solutions (CBS) include (a) it relieves branches of jobs like data backup, MIS generation (b) attracts low cost initially (c) enables centralized management information and decision support (d) standardization of branch automation software using single version:

86. The process where data is written on two ore more hard discs simultaneously over different channel is called

87. A company wants to make payment of dividend warrants to a large no. of share holder. Which of the following will be used by it:

88. Which of the following does not match

89. A data mining technique can be used for (a) predicting future trends based on information available(b) credit risk analysis (c) analyzing demographic information about customers:

90. The information technology impacts banks due to (a) change in organizational structure (b) change in organizational orientation (c) change in service delivery channel (d) change customer aspiration:

91. Which of the following statements is not correct:

92. (a) Local market (b) Regional market (c) National market (d) Global market. This classification is based on:

93. A service as a product, has characteristics such as (a) intangibility (b) inseparability (c) heterogeneity (d) perishability.

94. Which of the following does not match in the context of marketing mix (i.e.product,price,promotion and place):

95. In the context of product life cycle, there could be various situations such as (a) low sales, marginal profit (b) fast growth, rising profits (c) falling sales, low margins. These may relate to (1) maturity (2) decline (3) growth (4) introduction. Which of the following is not correctly matched

96. What among the following is an objective of pricing a product (a) profit (b) market share and survival (c) cash flow (d) image communication:

97. Various factors influence the pricing of a product which can be internal factors and external factors. Which of the following is not correctly categorized

98. 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

99. Which of the following is a distribution channel for banking products (a) telephone banking (b) call centre (c) automated teller machinery (d) branches

100. Which of the following factors influence the promotion mix (a) buyers’ readiness stage (b) type of product of market (c) product life cycle stage: