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)