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)

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

Quiz-10

1.While considering loans for project financing, the promoters are required to bring in their share in the project as under:

a) 100% upfront

b) 75% upfront and remaining in stages

c) 40-50% upfront and remaining in stages

d) at the discretion of banks

e) None of the above

2.Which of the following categories of loans can be priced by banks without reference to the Base Rate?

a) DRI loans

b) Loans to members of staff

c) Loans to bank's depositors against their own deposit

d) All the above

e) None of the above

3.In case of Information Technology and Software development industry, the loans upto Rs.2 crores can be sanctioned as per:

a) MPBF method of Tandon Committee

b) Turnover method of Nayak Committee

c) Cash budget method

d) Any of the above

e) None of the above

4.Which of the following commodities are covered under RBI's restrictions under Selective Credit Control?

a) wheat and pulses

b) buffer stocks of sugar with sugar mills

c) imported oil and oil seeds

d) course grains

e) none of the above

5.With a view to preventing speculative holding of essential commodities with the help of bank credit and the resultant rise in their prices, RBI can impose restrictions on advances (called Selective Credit Control) against such commodities:

a) u/s 21 and 35 A of RBI Act

b) u/s 21 and 35 A of Banking Regulation Act

c) u/s 34 and 35 A of Banking Regulation Act

d) u/s 34 and 35 A of RBI Act

e) none of the above

6.Loans to senior officers or their relatives are required to be reported to Board of the bank.  For this purpose, the senior officer means an officer in _____________

a) scale IV or above

b) scale V or above

c) scale VI or above

d) scale VII

e) None of the above

7.Banks cannot grant loan to its own director, against which of the following security?

a) loans against govt. securities

b) life insurance policies

c) bank deposits

d) all the above

e) none of the above

8.A bank cannot grant any loans and advances on the security of its own shares under the provisions of 

a) Section 19(B) of Banking Regulation Act

b) Section 21(3) of Banking Regulation Act

c) Section 20(1) of Banking Regulation Act

d) Section 21(B) of Reserve Bank of India Act

e) None of the above

9.The base rate is required to be reviewed by banks at least ______.

a) once in a month

b) once in a quarter

c) once in a half year

d) once in a year

e) none of the above

10.In which of the following cases, an account becomes NPA?

a) where principal and / or interest in TL has become due and not paid by the borrower for 75 days

b) where the cash credit account has been out of order for more than 90 days

c) where the bill purchased / discounted has become overdue and continues to be overdue for 87 days

d) where amount remains unpaid for less than two crop seasons for long duration crop in case of all agriculture accounts

e) all the above

Ans:

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

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Quiz-8

Quiz-8

1.Which of the following is not included as part of SLR assets?

a) cash in hand

b) gold owned by the bank

c) investment in unencumbered approved govt. securities

d) investment in quoted shares

e) none of the above

2.Following liability is not taken as part of time and demand liabilities for the purpose of CRR

a) fixed deposits

b) saving bank accounts

c) recurring deposits

d) paid-up capital

e) None of the above

3.RBI's Model for Rating of Indian Banks is known as

a) CAMELS

b) CAMEL

c) eRATING

d) eCAMEL

e) None of the above

4.Which of the following extension of abbreviation does not match?

a) BCSBI - Banking Codes and Standards Board of India

b) BCBS - Banking Codes and Banking Standards

c) BFS - Board for Financial supervision

d) BIFR - Board for Industrial and Financial Reconstruction

e) All the above matches

5.Under which kind of following mechanisms, the DSB returns being submitted by banks to RBI, fall?

a) early alert system

b) on-site surveillance

c) off-site surveillance

d) risk based supervision system

e) prevention of money laundering

6.Revolving Credit is made available in which of the following?

a) Debit Card

b) Prepaid Card

c) Credit Card

d) All the above

e) None of the above

7.The customer service in a bank branch has been disrupted for 2 hours, due to failure of the Central Server. What type of risk is it?

a) Reputation Risk

b) Systemic Risk

c) Operational Risk

d) Settlement Risk

e) None of the above

8.Risk associated with changes in the credit profile of the borrowers and counter parties is called:

a) Credit Risk

b) Market Risk

c) Counter-party Risk

d) Liquidity Risk

e) a and b above

9.A bank has failed to meet its obligation on account of a payment on due date due to its incapacity to pay.  What kind of risk is it?

a) Credit Risk

b) Liquidity Risk

c) Settlement Risk

d) Payment Risk

e) All the above

10.For transfer of borrowal account to another bank / financial institution, the consent or otherwise, should be conveyed within ______ days from the date of receipt of request.

a) 7 days

b) 15 days

c) 21 days

d) 30 days

e) No prescribed limit

Ans:

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