JAIIB Previous year Question free Part-3

1) The Capital Adequacy Ratio is :

a) 6%
b) 8%
c) 9%
d) 10% 

Ans:- ( c )

2) Except one of the following others are known as Non Fund based facilities:

a) Letters of Credit
b) Bank Guarantees
c) Co-acceptance of Bills
d) Trust Receipt 

Ans:- (d)

3) FIMMDA’s guidelines cover the following products, except one:

a) Call Money
b) Cross Currency Interest Rate swaps
c) Commercial Paper
d) Certificate of Deposit 

Ans:- (b)

4) Except one of the following others are part of Public Sector Banks:

a) State Bank of Hyderabad
b) Central Bank of India
c) Regional Rural Bank, sponsored by a nationalized bank
d) HDFC Bank 

Ans:- (d)

5) A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act,1881

a) 22
b) 25
c) 31
d) 65 

Ans:- (d)

6) The apex institution which handles refinance for agriculture and rural development is called:

a) RBI
b) SIDBI
c) NABARD
d) SEBI 

Ans:- (c)

7) Long Form Audit Report (LFAR) is prepared and submitted by

a) RBI inspectors
b) Internal inspectors
c) Statutory auditors 
d) Concurrent auditors 

Ans:- (c)

8) As per FIMMDA’s guidelines, the Mid-Office is responsible for:

a) Dealing activities
b) Risk Management
c) Reconciliation
d) Confirmation of deals 

Ans:- (b)

9) Interest is calculated on actual/365 days basis in respect of the following products, except one :

a) Call Money
b) Notice Money
c) Term Money
d) GOI dated securities 

Ans:- (d)

10) Which was the first Mutual Fund started in India:

a) SBI Mutual Fund
b) Kotak Pioneer Mutual Fund
c) Indian Bank Mutual Fund
d) None of the above 

Ans:- (d)

11) The regulator for Mutual Funds in India is:

a) FIMMDA
b) AMFI
c) RBI
d) SEBI 

Ans:- (d)

12) FIMMDA’s general principles and procedures are applicable to:

a) Fixed Income Markets
b) Money Markets
c) Derivatives Markets
d) All of the above 

Ans:- (d)

13) Your bank’s customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00
The CC account shows a credit balance of Rs,10,205.00. 
The relationship between your bank and XYZ Ltd is:

a) Debtor/Creditor
b) Creditor/Debtor
c) Bailor/Bailee
d) Bailee/Bailor 

Ans:- (a)

14) The right of set-off is:

a) Customer’s Right
b) Customer’s Obligation
c) Banker’s Right
d) Banker’s Discretion 

Ans:- (d)

15) Which of the following forms of business are permissible under BR Act:

a) Borrowing 
b) Issuance of Letters of Credit
c) Buying and selling of bullion
d) All of the above 

Ans:- (d)

16) Reserve Bank of India’s functions are classified into:

a) Supervisory & Regulatory 
b) Promotional & Developmental
c) Refinance Activities
d) All of the above 

Ans:- (d)

17) Minimum Bank Rate is:

a) 3%
b) 4%
c) 5%
d) None 

Ans:- (d)

18) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes

a) 10
b) 18
c) 22
d) 26 

Ans:- (c)

19) KYC means

a) Know Your Customer very well
b) Know Your existing Customer very well
c) Know Your prospective Customer very well
d) Satisfy yourselves about the customer’s identity and activities. 

Ans:- (d)

20) In a Garnishee Order, the banker on whom garnishee order served is:

a) Judgement Debtor’s Creditor
b) Judgement Creditor’s Creditor
c) Judgement Creditor’s Debtor
d) Judgement Debtor’s Debtor 

Ans:- (d)

JAIIB Previous year Question free-Part 2

1)Securitisation is a process of acquiring the loans classified as

a) Bookdebts
b) Performing debts
c) Bad debts
d) Non performing debts 

Ans:- (d)

2)The minimum percentage of Priority Sector advances to be maintained by foreign banks in India
a) 40%
b) 18%
c) 32%
d) 60% 

Ans:- ( c )

3) Loan for fish rearing is covered under Prirority Sector as ----------- advances

a) Direct Agriculture
b) Indirect Agriculture
c) Self Employment Scheme 
d) Allied to indirect Agriculture 

Ans:- (a)

4) Cash Budget is a statement of

a) Cash-Non cash funds
b) Cash receipt and Cash payments
c) Another name for cash flow
d) None 

Ans:- (b)

5) In bank’s parlance credit risk in lending is

a) Default of the banker to maintain CRR
b) Default of the banker to maintain SLR
c) Default of the banker to release credit to the customer
d) Default of the customer to repay the loan 

Ans:- (d)

6) The apex institution which handles refinance for agriculture and rural development is called:

a) RBI
b) SIDBI
c) NABARD
d) SEBI 

Ans:- ( c )

7) Long Form Audit Report (LFAR) is prepared and submitted by

a) RBI inspectors
b) Internal inspectors
c) Statutory auditors 
d) Concurrent auditors 

Ans:- ( c )

8) As per FIMMDA’s guidelines, the Mid-Office is responsible for:

a) Dealing activities
b) Risk Management
c) Reconciliation
d) Confirmation of deals 

Ans:- (b)

9) Interest is calculated on actual/365 days basis in respect of the following products, except one :

a) Call Money
b) Notice Money
c) Term Money
d) GOI dated securities 

Ans:- (d)

10) Which was the first Mutual Fund started in India:
a) SBI Mutual Fund
b) Kotak Pioneer Mutual Fund
c) Indian Bank Mutual Fund
d) None of the above 

Ans:- (d)

11) The regulator for Mutual Funds in India is:

a) FIMMDA
b) AMFI
c) RBI
d) SEBI 

Ans:- (d)

12) FIMMDA’s general principles and procedures are applicable to:
a) Fixed Income Markets
b) Money Markets
c) Derivatives Markets
d) All of the above 

Ans:- (d)

13) Your bank’s customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00 The CC account shows a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:

a) Debtor/Creditor
b) Creditor/Debtor
c) Bailor/Bailee
d) Bailee/Bailor 

Ans:- (a)

14) The right of set-off is:

a) Customer’s Right
b) Customer’s Obligation
c) Banker’s Right
d) Banker’s Discretion 

Ans:- (d)

15)Which of the following forms of business are permissible under BR Act:

a) Borrowing 
b) Issuance of Letters of Credit
c) Buying and selling of bullion
d) All of the above 

Ans:- (d)

16) A Co-Operative Bank operating in different States are regulated by:
a) State Co-Operative Societies Act
b) Banking Regulation Act
c) Multi Unit Co-Operative Societies Act
d) Banking Laws (applicable to Co-Operative Societies) 

Ans:- ( c )

17) In respect of Regional Rural Banks, the share holding pattern is:
a) Central Government 50%,State Government 35%,Sponsoring Bank 15%
b) Central Government 50%,State Government 15%,Sponsoring Bank 35%
b) Central Government 15%,State Government 35%,Sponsoring Bank 50%
b) Central Government 35%,State Government 50%,Sponsoring Bank 15%

Ans:- (b)

18) Law of limitation is not applicable in respect of :

a) Advance against pledge of shares
b) CC granted against hypothecation of inventory
c) Term loan secured by mortgage of Plant & Machinery
d) Bank Term Deposit 

Ans:- (d)

19) A bank in India, wants to undertake capital market activities, it should:

a) Obtain special license from AMFI
b) Obtain special license from FIMMDA
c) Both a and b
d) Register with SEBI 

Ans:- (d)

20) FIMMDA stands for:

a) Foreign Exchange Markets and Derivative Markets
b) Fixed Income Markets Money Markets and Derivatives Markets
c) Fixed Income Markets and Derivatives Markets
d) None of the above 

Ans:- (b)

JAIIB Previous year Question free- Part -1

Hello friend,

Today We are sharing with  you JAIIB Previous year question, which will help you in understanding the pattern of question asked by IIBF in JAIIB Exam. We hope it will definitely help full for you. Here we shall share in post of 20 question. 

1) Reserve Bank of India’s functions are classified into:
a) Supervisory & Regulatory 
b) Promotional & Developmental
c) Refinance Activities
d) All of the above

Ans:- (d)

2) Minimum Bank Rate is:
a) 3%
b) 4%
c) 5%
d) None 

Ans:- (d)

3) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes

a) 10
b) 18
c) 22
d) 26 

Ans:- ( c )

4) KYC means

a) Know Your Customer very well
b) Know Your existing Customer very well
c) Know Your prospective Customer very well
d) Satisfy yourselves about the customer’s identity and activities. 

Ans:- (d)

5) In a Garnishee Order, the banker on whom garnishee order served is:
a) Judgement Debtor’s Creditor
b) Judgement Creditor’s Creditor
c) Judgement Creditor’s Debtor
d) Judgement Debtor’s Debtor 

Ans:- (d)

6) Sec 131 of NI Act,1881 extends protection to the

a) Paying Banker
b) Collecting Banker
c) Advising Banker
d) Issuing Banker 

Ans:- (b)

7) Hypothecation is applicable in the case of 

a) Movable goods
b) Immovable property
c) Book debts
d) Corporate guarantee 

Ans:- (a)

8) A cheque is dated 12/05/05.the due date is:

a) 12/08/05
b) 14/09/05
c) 12/11/05
d) None 

Ans:- (d)

9) Charge created on LIC Policy is:
a) Hypothecation
b) Pledge
c) Assignment
d) Mortgage 

Ans:- ( c )

10) Your bank grants a working capital finance to ABC & Co, a partnership firm, against hypothecation of inventory. The charge is to be registered with Registrar of Companies within

a) 30 days from the date of advance
b) 30 days from the date of hypothecation agreement
c) 30 days from the date of sanction of loan
d) None 

Ans:- (d)

11) Which one of the following is not barred by law of limitation?

a) Pledge
b) Hypothecation
c) Banker’s lien
d) Guarantee 

Ans:- ( c )

12) The term “Credit Management” covers

a) Capital adequacy norms
b) Risk management including Asset/Liability management
c) Credit appraisal – decision and review of loans & advances
d) All of the above 

Ans:- (d)


13) Bank’s Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendations of -------------------- Committee

a) Rangarajan
b) Narasimham
c) Ghosh
d) Tandon 

Ans:- (b)

14) The time taken to convert cash into raw materials, semi finished goods, finished goods and into cash , is known as

a) Trade cycle
b) Cash cycle
c) Operating cycle
d) Revolving cycle 

Ans:- ( c )

15) A company which pools money from investors and invests in stocks, bonds, shares is called

a) A bank
b) An insurance company
c) Bancassurance
d) Mutual Fund 

Ans:- (d)

16) Bancassurance is

a) An insurance scheme to insure bank deposits
b) An insurance scheme to insure bank advances
c) A composite financial service offering both bank and insurance products
d) A bank deposit scheme exclusively for employees of insurance companies

Ans:- ( c )

17) John & James are friends aged 14 & 15 respectively. They want to open a joint account in your bank. You will

a) Allow them to open a joint account to be operated jointly
b) Allow them to open a joint account with operating instructions Either or Survivor 
c) Allow them to open a joint account with operating instructions Former or Survivor
d) Allow them to open a joint account with operating instructions Any one or Survivor 

Ans:- (a)

18) Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed by Mr.Atmaram as director of the Ltd company. The bank

a) Can honour the cheque only after obtaining confirmation from other directors
b) Can honour the cheque
c) Cannot hounour the cheque
d) The company should issue a stop payment instructions to the bank 

Ans:- (b)

19) Tele banking service is based on 

a) Virtual Banking
b) Online Banking
c) Voice processing
d) Core Banking 

Ans:- ( c )

20) In a securitisation deal, the role of a Special Purpose Vehicle (SPV) is

a) To acquire large Non Performing Loans (NPA)
b) To acquire such loans from a bank or financial institution
c) To acquire such loans for a transfer price, with or without recourse
d) To manage the acquired loans for the purpose of realization or holds them as investment till maturity

Ans :- (d)

IIBF release guideline for asking question in JAIIB & CAIIB Exam on Recent development in banking industry

Cut-off Date of Guidelines /Important Developments for Examinations

The Institute has a practice of asking some questions in each exam about the recent developments / guidelines issued by the regulator(s) in order to test if the candidates keep themselves abreast of the current developments. However, there could be changes in the developments / guidelines from the date the question papers are prepared and the dates of the actual examinations.

In order to address these issues effectively, it had been decided that:

(i)         In respect of the exams to be conducted by the Institute for the Period from February 2017 to July 2017, instructions/guidelines issued by the regulator(s) and important developments in banking and finance up to 31st December, 2016 will only be considered for the purpose of inclusion in the question papers.

(ii)        In respect of the exams to be conducted by the Institute for the period from August 2017 to January 2018, instructions/guidelines issued by the regulator(s) and important developments in banking and finance up to 30th June, 2017 will only be considered for the purpose of inclusion in the question papers.

 It is taken from iibf website.

How to Change IIBF Exam centre for JAIIB & CAIIB

Hello friend,

There are many question found on banker facebook group or whattsApp group regarding JAIIB & CAIIB Exam and regarding “how to change IIBF exam centre for JAIIB and CAIIB.  Here we just posting  copy as posted on IIBF website under Member/Candidate Support Service(Help) pages. Candidate can go their and register their issue regarding exam or other IIBF  exam related  query.

Members / Candidates Support Services (HELP)

Members of the Institute / Candidates enrolled for the examinations of the Institute can register their Queries here.

                       GENERAL INFORMATION

1) Membership ID cards - will be sent to all New Members through Speed/Registered Post within 45 days from the date of successful enrolment. ID card will not be issued to candidates registered for examinations under Non-member category. Pl note that to appear for examinations Members as well as Non-members can use any one of the following ID card (original)along with printed copy of the Admit Letter.
a) Photo Id Card issued by the employer b) PAN Card c) Driving License d) Election Voter's I Card e) Passport f) Aadhar Card

2) Admit Letter(Hall Ticket) - will be sent to all eligible Candidates to their e-mail Id registered with the Institute 10 days before the start of the examination. The same will also be hosted on Institute's website www.iibf.org.in under the heading 'Exam Related', 1 week before the examination date. Candidates can down load the Admit Letter using their Login ID(Membership/registration No.) and Profile Password.

3) Change of Centre requests - will be accepted till 45 days before the start of the examination for quarterly/half yearly examinations. Request for change of centre will be accepted for official purpose like transfer/deputation/Training etc only. Members are required to provide scanned copy of supportive document along with the request for change of centre.

4) Results - are expected to be declared within 45 days of the conclusion of the Examination. On declaration, Results will be available on the Institute's website for download and printed copy of the same will not be sent by post.

5) Consolidated Mark Sheet - Candidates who have completed the Examinations having more than 1 subject, Consolidated Mark sheet of all subjects will be available on the Institute's website. Candidates can download the same after entering login credentials using their Membership/Registration number and Profile Password. Printed copy of the same will not be sent by post.

6) Final Certificate - will be sent by speed post within 2 months after the declaration of result.

For detailed information, refer Rules/Syllabus / Important Instructions available on the web site

JAIIB-AFB UNIT-13. BALANCE SHEET EQUATION : Analysis in lucid language

Friends due to hectic schedule in bank, We are unable to post daily and more content, sorry for that. But we promise we will provide you Study material of course in lucid language at one plat form. Ok friends lets go with today's topic.

This topic is very important from exam point of view as well as banker’s day to day work. From this topic 3 to 5  question generally asked in JAIIB exam. One question is fixed from this following equation :-

Assets = Capital + Liabilities

Or Liabilities=Assets – Capital

Or Capital = Assets – Liabilities

Or Assets = Equities (total claim)

-        Liabilities consist of claims of owners( =Net worth= Paid up capital + balance of reserves and surplus) and claims of outsiders.

-        As per concept of accountancy, the business and its owner are considered as to separate and distinct entities & All transactions of the business are recorded in the books of the business from the point of the business, not its owners.

Ø To understand Balance sheet  we must have  clear concept about Assets & liabilities . Following chart will help you in this.

Assets =	Capital +Liabilites
Cash Bank Bill Receivable Debtor Stock in trade Furniture Machinery Building	Capital + reserve & surplus Creditor Bill payable Outstanding expenses Bank overdraft

Nothing more than this you have to know for exam. For more clearance read transaction example from Mcmillan book.( Page-225)

Quiz-11

1.Banks are required to classify NPA accounts

a) into 2 categories i.e. doubtful and loss accounts

b) into 3 categories i.e. sub-standard, doubtful and loss accounts c) into 4 categories i.e. special mention accounts, sub-standard, doubtful and loss accounts

d) into 4 categories i.e. standard accounts, sub-standard, doubtful and loss accounts

e) into 5 categories i.e. special mention accounts, standard accounts, sub-standard, doubtful and loss accounts

2.A company is sanctioned certain working capital limits by 3 banks under a formal consortium arrangement.  In such cases, the ratio of charge over the securities, will be as per the:

a) Balance in the limits allocated under the consortium

b) Limit sanctioned by the individual banks

c) Balance outstanding even where allocated limit exceeded

d) Limit allocated or sanctioned whichever is higher

e) Limit allocated or sanctioned whichever is lower

3.The number of banks which can participate in consortium advance is:

a) Two

b) Three

c) Five

d) Ten

e) No minimum or maximum is prescribed

4.For the purpose of exposure, the exposure in loans is to be taken as under:

a) in case of cash credit or overdraft, the sanctioned limit

b) in case of letter of credit or bank guarantee, the sanctioned limit

c) in case of TL sanctioned limit but if TL fully disbursed, then outstanding balance

d) all the above

e) None of the above

5.Which of the following accounts is not exempted from application of exposure ceiling norms?

a) weak / sick units

b) food credit

c) State govt. guaranteed accounts

d) Loan against deposits

e) None of the above

6.What is the exposure ceiling under group exposure for single borrower and borrowing group, as a percent of capital fund?

a) 10% and 30%

b) 10% and 40%

c) 15% and 30%

d) 15% and 40%

e) 15% and 50%

7.On which of the following types of loans, the loan system of credit delivery is not applicable?

a) advances to rehabilitation units

b) advances to manufacturing of mass consumption goods

c) advances for seasonal industry

d) export credit proposal

e) a, c and d

8.Which of the following organisations, provide credit history of the borrowers?

a) CIBIL

b) SEBI

c) RBI

d) CCIL

e) None of the above

9.Which of the following is not part of prudent guidelines issued by Reserve Bank of India?

a) income recognition

b) asset classification

c) loan recovery rules

d) provisioning norms

e) none of the above

10.In respect of documents signed jointly and severally, the bank can seek recourse in the Court against:

a) all

b) any one

c) all separately

d) All or any of the above

e) At the discretion of the Court

Ans.

1	2	3	4	5	6	7	8	9	10
b	a	e	d	c	d	e	a	c	c

JAIIB PPB UNIT-1. Indian financial System-An overview

·Financial System = A system to mobilize the capital from various surplus sectors of the economy and allocate & distribute the same to the various needy sector

 - It transform “saving into investment and consumption”.

· Central Banking Authority = RBI (Reserve Bank of India)

-Two distinct role :

a)Monetary control including controlling inflation.

b)Bank Supervision.

- Monetary control is exercised through CRR, SLR and Bank Rate &Repo rate (Main instruments to control Prime rates of leading banks)

- It acts as lenders of last resort to banking system.

• · Commercial Banks : It include public sector banks, foreign banks and old & new private sector banks.
• ·  NBFCs(Non Banking Financial Companies) :

-NBFCs are allowed to raise deposits from the public and lend through various instruments including leasing, hire purchase and bill discounting etc.

• ·   PDs(Primary Dealers) :

- It deals in government securities in both primary and secondary markets.

• · FIs (Financial Institution) = A development financial institution provide long term funds for industry and agriculture.

- It deals with financial transactions such as investments, loans and deposits.

·      Co- Operative Banks :

- Urban co operative banks are controlled by state Government and RBI (many times asked in JAIIB)

- Other co-operative banks are controlled by National Bank for Agriculture and Rural Development(NABARD) and State Government.

·    CRR (Cash Reserve Ratio) = As per section 42(1) of RBI Acts 1934.

-It is the mandatory deposit (Prescribed percentage of NDTL (Net Demand & Time Liabilities) that all scheduled commercial banks are required to maintain with RBI.

·      SLR (Statutory Liquidity Ratio) :

-  It is prescribed percentage of NDTL of banks to be held in prescribed securities, mostly government securities.

- The ratio of liquid assets to Demand and time liabilities known as SLR.

-The increase or decrease in CRR & SLR , contracts or expands credit creation.