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)