JAIIB - 101 - MOCK TEST - 1
JAIIB - MOCK TEST - 1 Question 1: SLBMG-JAIIB#9462900411- -JIB-101-SL
Global Bank is having a current account of M/s Ruchi Enterprises and a cheque of Rs.13500 ispresented through clearing, drawn in favour of Mr. Ramesh. Through an oversight the cheque is dishonoured wrongfully. When information about this dishonour is received by Mr. Ramesh, he sends a notice to the Global Bank for wrongful dishonour and claims damages. What would you do with this notice?
a Bank should contact Mr. Ramesh for withdrawls of the notice for damages.
b Banks should contact the drawer and ask them to prevail upon the payee for withdrawal of the notice.
c Bank can ignore this notice as the bank is not liable for such damages to the payee.
d Bank is liable to the drawer of the cheque and no one else.
e c and d above
Answer: e c and d above
Question 2: SLBMG-JAIIB#9462900411- -JIB-101-SL
Corporate Bank had opened a saving bank account in the name of Mr. Subramanian and Murlidhar operated as `former or survivor’. The wife of Mr. Subramanian, who is nominee in the account comes to your branch and informs you that Mr. Subramanian has expired a month back. She also hands over the death certificate and requests for payment of the balance
a the payment to the nominee will be made on proper identification as she is also having the death certificate.
b the payment will be made to the wife of deceased being legal heir of the former.
c the payment will not be made as with the death of the former, nomination has been cancelled.
d the payment will not be made as with the death of the former, survivor gets the authority to operate the account and nominee comes in to picture only when none of the account holders is available
e any of the above
Answer: d the payment will not be made as with the death of the former, survivor gets the authority to operate the account and nominee comes in to picture only when none of the account holders is available
Question 3: SLBMG-JAIIB#9462900411- -JIB-101-SL
Bank Universal Limited receives a letter of credit of $ 20000 in favour of M/s Diamond Exports Pvt Ltd for exports to Germany. After verification of the genuineness of the credit, it is forwarded to the beneficiary through registered letter. Unfortunately, due to postal strike, by the time the letter of credit is delivered, its validity period expires. The exporter threatens legal action against the bank:
a bank is liable as bank has not handed over the credit in time to the beneficiary
b postal department is liable for the loss and exporter has to take up the matter with the postal department
c bank is not liable as it does not assume any liability for the consequences arising out of delay in transit due to actions beyond its control
d bank could persuade the opening bank to extend the validity date so that it is not put to loss
e any of the above
Answer: c bank is not liable as it does not assume any liability for the consequences arising out of delay in transit due to actions beyond its control
Question 4: SLBMG-JAIIB#9462900411- -JIB-101-SL
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:
a an advice ready for despatch to another branch after debit to the account in payment of cheque
b an advice received for a cheque which was sent in collection, from another branch but not credited to the account so far
c a cheque sent in clearing, the amount of which has been credited to the account
d an amount of Rs.4000 relating to his wife’s account credited by mistake to the account of the customer
e all the above
Answer: c a cheque sent in clearing, the amount of which has been credited to the account
Question 5: SLBMG-JAIIB#9462900411- -JIB-101-SL
Your branch opens a fixed deposit of Rs.50000 in the joint name of Mr. Anil Kumar and Mr. Suhail Kumar payable to either or survivor. They also nominate Miss Konica a minor daughter of Mr. Suhail Kumar with the provision that the payment can be claimed by Mrs. Suhail Kumar on behalf of the minor. Unfortunately, Mr. Suhail Kumar expired and subsequently Mr. Anil Kumar decides to change the nomination from Miss Konica to his own son. To this, Mrs. Suhail Kumar objects and asks your branch not to accept the instruction of Mr. Anil Kumar:
a bank has no option to ignore the request from Mr. Anil Kumar as, being survivor all rights relating to deposit are vested with him.
b bank can request Mr. Anil Kumar to decide the case in consultation with the existing nominee
c bank has to accept the request from Mrs. Suhail Kumar, as she was the nominee coupled with interest
d bank will ask them to go to a court of law for decision and would implement the decision of the court
e b and c above
Answer: a bank has no option to ignore the request from Mr. Anil Kumar as, being survivor all rights relating to deposit are vested with him.
Question 6: SLBMG-JAIIB#9462900411- -JIB-101-SL
Sh. Amrit Lal opens a term deposit account with Bank of Bengal and nominates his niece Ms Aruna Pande. Unfortunately, he expires in an accident but Ms Aruna Pande does not turn up despite a notice from the bank. Meantime, the legal heirs of Mr. Amrit Lal i.e. his two sons, visit the bank and request for making payment of the deposit. They also present a probate from court of law in which they are executors of the will of the deceased:
a the payment of the balance inthe account will be made by the bank to Ms Aruna Pande only
b the payment of the balance would be made to the legal heirs in terms of probate
c the payment will be made in equal proportion to the legal heirs and the nominee
d the bank will advise the legal heirs to bring specific order from the court in the light of nomination
e none of the above
Answer: a the payment of the balance inthe account will be made by the bank to Ms Aruna Pande only
Question 7: SLBMG-JAIIB#9462900411- -JIB-101-SL
The liability of a minor co-parcener in an HUF, for the acts of a Karta is:
a unlimited
b nil
c to the extent of his share in the family property
d 50% of the loss as per his share
e none of the above
Answer: c to the extent of his share in the family property
Question 8: SLBMG-JAIIB#9462900411- -JIB-101-SL
Mr. D Singh and Mr. K Singh are maintaining a current account in `former and survivor’ operations. Mr. K Singh (illiterate) issues a notice to the bank that the operations in the account should be stopped as there is some dispute between both of them. He also mentions that money in the account belongs to him but for operational convenience, the power to operate the account was given in favour of D Singh. What would you do with the cheque (signed by Mr.D Singh for Rs.670 favouring LIC of India) which has been presented through clearing, for payment from this account?
a the cheque is of small amount and shall be paid.
b the cheque is in favour of LIC of India and shall be paid
c cheque will be returned due to receipt of information about dispute
d cheque will be paid as instruction of K Singh can not be accepted so long as Mr. D Singh is alive
e Any of the above
Answer: d cheque will be paid as instruction of K Singh can not be accepted so long as Mr. D Singh is alive
Question 9: SLBMG-JAIIB#9462900411- -JIB-101-SL
An attachment order is received from Income Tax Officer for attaching funds lying in saving bank account of a person. In case, the bank fails to execute this order u/s 226 (3) of Income Tax Act:
a: Branch Manager can be arrested.
b: Branch Manager can be fined upto Rs. 5000 and sentenced upto one year
c: The banker shall be treated as a assessee in default
d Amount can be recovered from the bank, with penalty.
e: c and d.
Answer: e: c and d.
Question 10: SLBMG-JAIIB#9462900411- -JIB-101-SL
Your branch is having a fixed deposit receipt of Rs.2 lac in the name of B, which is to mature after one year. B defaults in payment of loan. The right of set-off can be exercised for a loan against fixed deposit receipt:
a: On maturity
b: Even before maturity
c by giving 30 days notice, it can be exercised
d: any of the above
e: None of the above.
Answer: a: On maturity
Question 11: SLBMG-JAIIB#9462900411- -JIB-101-SL
Your customer Mr. Veerapan issues a cheque payable to `self or order’, for Rs.55000. It is presented for payment by his peon Mr. Prakash. The cheque is endorsed by Mr. Veerapan in blank:
a cheque should not be paid as it is drawn in favour of self
b cheque should not be paid as it is not drawn properly
c cheque can be paid as it is properly drawn and endorsed in blank the payment of which can be obtained by the bearer
d cheques payable to self or order cannot be endorsed in blank
e none of the above
Answer: c cheque can be paid as it is properly drawn and endorsed in blank the payment of which can be obtained by the bearer
Question 12: SLBMG-JAIIB#9462900411- -JIB-101-SL
The bank received garnishee order on saving bank account of Mr. Ram at 10.50 a.m., who deposits Rs. 5000 at 12.10 p.m. i.e. after service of the order:
a: The order would apply to this amount also.
b: The bank will refuse to accept the deposit
c: The order will not apply to this amount
d order will apply if court is informed about this
e: order will apply if court declares so.
Answer: c: The order will not apply to this amount
Question 13: SLBMG-JAIIB#9462900411- -JIB-101-SL
For the purpose of change in classification of an advances from standard to sub-standard category due to non-payment of the loan, in case of crop based agriculture advances, which of the following is taken:
a two harvest seasons
b two crop seasons
c one crop season
d two crop seasons for short duration crop and one crop season for long duration crop
e two harvest seasons with maximum of one year.
Answer: d two crop seasons for short duration crop and one crop season for long duration crop
Question 14: SLBMG-JAIIB#9462900411- -JIB-101-SL
An exporter has received repayment of certain bills he had sent for collection and now wants to retain the same in foreign currency:
a he can open current account as EEFC account
b he can open fixed deposit account as EEFC account
c he can open saving bank account as EEFC account
d he can open any of the above provided no interest is paid
e he can open only a and c
Answer: a he can open current account as EEFC account
Question 15: SLBMG-JAIIB#9462900411- -JIB-101-SL
Your branch maintains a current account of a partnership firm Sandhu & Company with Sandeep Sandhu and Kuldeep Sidhu as partners. Master Sandesh Sandhu (sonof Mr. Sandeep Sandhu) is also admitted to the firm for benefits. In order to meet the financial requirements of the firm, Mr. Sandhu approaches the bank to sanction a demand loan against an FDR in the name of Master Sandesh u/g of Mr. Sandeep Sandhu:
a the loan is needed by the firm, in which the minor is a partner, hence can be sanctioned
b the loan is being raised by the father of the minor, due to which it can be sanctioned
c the loan can be sanctioned by keeping the FDR as security
d the loan can be sanctioned if the father declares that it is for the benefit of the minor.
e Loan cannot be sanctioned
Answer: e Loan cannot be sanctioned
Question 16: SLBMG-JAIIB#9462900411- -JIB-101-SL
Corporate Bank had granted a term loan of Rs.20 lac to M/s Kawal Society Limited which is not being repaid. The company is not signing the balance confirmation letter despite the fact that it has been sent three times. Bank sends a legal notice for repayment of the loan which shows balance of Rs.27 lac now. Company confronts bank’s claim of Rs.27 lac by way of a letter stating that they have already paid Rs.5 lac due to which the amount should be Rs.15 lac only:
a the letter will serve the purpose of acknowledgement letter and extend the limitation period for the entire amount
b the letter could extend the limitation period if it were duly stamped
c the letter is not an acknowledgement it is only a denial of bank’s claim
d any of the above
e none of the above
Answer: a the letter will serve the purpose of acknowledgement letter and extend the limitation period for the entire amount
Question 17: SLBMG-JAIIB#9462900411- -JIB-101-SL
Your branch has sanctioned working capital limit of Rs.9 lac to a partnership firm which submits stock report with stocks worth Rs.28 lac and sundry creditors of Rs.18 lac. The margin in the account is only 20% , the unit being an SSI unit. What is the maximum amount up to which the limit can be allowed to be availed by the party?
a Rs.6 lac
b Rs.8 lac
c Rs. 9 lac
d Rs.4.60 lac
e none of the above
Answer: b Rs.8 lac
Question 18: SLBMG-JAIIB#9462900411- -JIB-101-SL
Any old bank has to fulfill the following terms and conditions to be included in the second schedule of RBI Act 1934:
a: It should be either a State Co-op Bank or a Company defined under Indian Companies Act 1956 or an institution appointed by Central Govt. for undertaking banking operations.
b: Jointly its paid up capital and reserves should not be less than 5 lac.
c: It has to satisfy RBI that none of its functions, are against depositors interest.
d: All of the above.
e only c
Answer: d: All of the above.
Question 19: SLBMG-JAIIB#9462900411- -JIB-101-SL
For small scale service business enterprises (SSSBE), the investment ceiling in fixed assets excluding land and building is:
a Rs.20 lac
b Rs.3 lac
c Rs.5 lac
d Rs.10 lac
e Rs.5 lac
Answer: d Rs.10 lac
Question 20: SLBMG-JAIIB#9462900411- -JIB-101-SL
A person called Himmat Singh has been maintaining a saving bank account with your branch for the last 10 years where no nomination has been opted. Now he wants to make nomination in favour of his minor son.
a: Bank will accept the request for nomination
b: Bank will not accept the request for nomination in favour of minor since a long period has already passed when account was opened
c: Nomination in favour of minor can be allowed only when a person is also appointed who can receive the payment on behalf of minor if the account holder dies during his minority
d: Both (c) and (b) above
e none of the above
Answer: c: Nomination in favour of minor can be allowed only when a person is also appointed who can receive the payment on behalf of minor if the account holder dies during his minority
Question 21: SLBMG-JAIIB#9462900411- -JIB-101-SL
Universal Bank has been maintaining a joint fixed deposit account in the name of Mr. Asha Singh and Mr. Manjeet Singh. After sudden death of the Mr. Asha Singh in a road accident, Mr. Manjeet Singh approaches the bank for payment of the fixed deposit before maturity, which the bank makes after obtaining an indemnity bond. The legal heirs dispute the payment and insist on 50% payment:
a the claim of legal heirs is not tenable as after death of one of the joint holders, the balance becomes payable to the survivor
b the bank has made the payment to the survivor negligently, as in case of death of one of the holders, the deposit receipt cannot be cancelled
c the bank has acted negligently as the payment was required to be made to the legal heirs of the deceased holder and the survivor jointly
d a and c
e any of the above
Answer: c the bank has acted negligently as the payment was required to be made to the legal heirs of the deceased holder and the survivor jointly
Question 22: SLBMG-JAIIB#9462900411- -JIB-101-SL
A business firm has been sanctioned working capital limits of Rs.6 lac at 25% margin by the bank and book debt limit of Rs.4 lac at 50% margin. What will be total margin requirement to avail the limit fully:
a 4 lac
b 5 lac
c 6 lac
d 6.5 lac
e 8 lac
Answer: c 6 lac
Question 23: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the maximum time available to a customer for lodging complaint to Ombudsman:
a 1 month from date of complaint made to bank and no reply received
b 1 month from date of complaint, reply received but customer not satisfied
c 1 year from date of receipt of reply from the bank
d 1 year from date of lodgement of complaint with the bank + 1 month, where reply has not been received.
e c or d
Answer: e c or d
Question 24: SLBMG-JAIIB#9462900411- -JIB-101-SL
An FD payable to either or survivor for Rs. 25000 is in the names of A and B. The receipt is lost and a duplicate is issued on the basis of indemnity. Later on A comes with original on date of maturity for payment.
a: The bank will pay to A because it is payable to either or survivor
b: The bank will not pay because a duplicate has been issued making the original as useless. Hence the consent of B is required
c: The court will be informed.
d any of the above at the discretion of the bank
e: None of the above
Answer: b: The bank will not pay because a duplicate has been issued making the original as useless. Hence the consent of B is required
Question 25: SLBMG-JAIIB#9462900411- -JIB-101-SL
Ravi your customer of a saving bank account is approached by a person called Ram to give an introduction to enable him to open a saving bank account with your branch to which he agrees.Subsequently it is proved that Ravi gave introduction though he really did not know much about Ram. In such situation:
a: Bank can hold Ravi responsible as he carelessly gave the introduction
b: Bank cannot hold Ravi responsible as Ravi has not violated introduction rules
c: Bank can recover 50% of amount from Ravi
d any of the above
e: None of the above
Answer: b: Bank cannot hold Ravi responsible as Ravi has not violated introduction rules
Question 26: SLBMG-JAIIB#9462900411- -JIB-101-SL
Intt. in SF account is calculated on:
a: Minimum balance during the month
b: Balance as on 30th of the month
c: Minimum balance between 10th and last day of the month
d balance as on 10th and last day of the month
e: None of the above
Answer: c: Minimum balance between 10th and last day of the month
Question 27: SLBMG-JAIIB#9462900411- -JIB-101-SL
A gives a mandate in favour of B to operate his account and later on a power of attorney is executed by A in favour his wife. In the case:
a: Mandate will would remain effective along with power of attorney
b: Mandate would become ineffective, if revoked specifically
c: Court intervention should be had
d Only power of attorney will be operative
e: a and b.
Answer: e: a and b.
Question 28: SLBMG-JAIIB#9462900411- -JIB-101-SL
In a public limited company, maximum and minimum no. of shareholders is:
a: 50 and 10
b: No limit and 7
c: 100 and 2
d: 1000 and 100
e any number at the discretion of the company
Answer: b: No limit and 7
Question 29: SLBMG-JAIIB#9462900411- -JIB-101-SL
A company is availing credit facilities from your branch. Which among these credit facilities does not require registration of charges u/s 125 of Companies Act 1956 for :
a: Packing Credit for shipment of goods
b: Hypothecation of stocks
c: Pledge of stock
d: Term loan for machinery
e bills discounting
Answer: c: Pledge of stock
Question 30: SLBMG-JAIIB#9462900411- -JIB-101-SL
For door-step banking by banks, RBI has issued directives under which of the following Acts:
a RBI Act
b Negotiable Instrument Act
c Banking Regulation Act
d Shops and Establishment Act
e Industrial Disputes Act
Answer: c Banking Regulation Act
Question 31: SLBMG-JAIIB#9462900411- -JIB-101-SL
In a partnership firm, the no. of partners cannot go beyond 10 or 20 depending upon the nature of business. The provision regarding this maximum no. of partners is mentioned in:
a: Indian Partnership Act
b: Indian Contract Act
c: Indian Companies Act
d Banking Regulation Act
e: None of the above.
Answer: c: Indian Companies Act
Question 32: SLBMG-JAIIB#9462900411- -JIB-101-SL
Ravi Kumar and Sons, an HUF, maintain a current account. The Karta of the HUF dies and leaves behind three family members i.e. his wife and two minor sons. How will you deal with the account:
a: Bank will stop operations in the account
b: Account can be operated by minor son being male member
c: Account would be operated by widow being guardian of eldest male member to be called Karta
d account can be operated by any of the two sons
e: None of the above.
Answer: c: Account would be operated by widow being guardian of eldest male member to be called Karta
Question 33: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which of the following documents in case of a company, is called Charter of the company:
a: Resolution from Board of Directors
b. Resolutio from Shareholders
c: Articles of Association
d Certificate of Incorporation
e: Certificate of Commencement of Business
Answer: c: Articles of Association
Question 34: SLBMG-JAIIB#9462900411- -JIB-101-SL
A bank receives a cheque for collection from its customer. Bank gives credit before collection of the cheque. It also allows the customer to withdraw the amount. In such case, the:
a: Bank is holder
b: Bank is holder for value
c: Bank becomes holder in due course
d representative of the drawer
e: None of the above
Answer: b: Bank is holder for value
Question 35: SLBMG-JAIIB#9462900411- -JIB-101-SL
Not negotiable crossing means:
a: The collecting banker should confirm about the genuineness of holder before collection of his cheque
b: The not negotiable cheque cannot be further negotiated.
c: Collection of not negotiable cheque will not get protection under NI Act
d: A transferee cannot get better title than a transferor and he also cannot transfer a better title than he possesses.
e any of the above
Answer: d: A transferee cannot get better title than a transferor and he also cannot transfer a better title than he possesses.
Question 36: SLBMG-JAIIB#9462900411- -JIB-101-SL
A bill is payable to or to order of a non-trading firm. Endorsement can be made by:
a: Any partner of the firm
b: All the partners
c: Authorised partner through power of attorney
d: Any two partners
e any of the above
Answer: b: All the partners
Question 37: SLBMG-JAIIB#9462900411- -JIB-101-SL
The term `allonge’ refers to:
a: A plain sheet appended to a negotiable instrument for the purpose of making endorsement thereon
b: Conditional endorsement of a negotiable instrument
c: A plain sheet appended to a will
d enclosures to the balance sheet of the bank
e: None of the above
Answer: a: A plain sheet appended to a negotiable instrument for the purpose of making endorsement thereon
Question 38: SLBMG-JAIIB#9462900411- -JIB-101-SL
A customer of Delhi branch of the bank having Multi-city cheque book under the centralized business solution (CBS) demands payment of a cheque at Lucknow branch of the bank and there is connectivity between these two branches:
a it is not a proper demand
b demand is in order. Lucknow branch should pay. Bank would get proper discharge.
c to demand money all bankbranches are considered one unit whether the cheque is normal or multi-city.
d demand is in order, but Lucknow branch cannot get valid discharge as contract is with Delhi branch
e b and c
Answer: b demand is in order. Lucknow branch should pay. Bank would get proper discharge.
Question 39: SLBMG-JAIIB#9462900411- -JIB-101-SL
A cheque is presented for payment through clearing house but due to certain reasons, it is returned unpaid. The returning memo is enclosed to comply with:
a: Negotiable Instruments Act
b: RBI Act
c: Banking Regulations Act
d: It is a practice
e RBI clearing House rules
Answer: e RBI clearing House rules
Question 40: SLBMG-JAIIB#9462900411- -JIB-101-SL
The provision for making the payment of amount mentioned in words in a cheque is described u/s...of NI Act:
a: 18
b: 19
c: 20
d: 21
e 118
Answer: a: 18
Question 41: SLBMG-JAIIB#9462900411- -JIB-101-SL
A bearer cheque is issued by one Mr. Ashok in favour of Aman, but he forgets to hand over the cheque to Aman. Aman however, picks up the cheque in his absence from his table. Whether the negotiation has taken place ?
a: No, endorsement is also needed
b: No, delivery is also needed
c: No, endorsement and delivery both required
d yes, the cheque is drawn in his favour
e: None of the above
Answer: b: No, delivery is also needed
Question 42: SLBMG-JAIIB#9462900411- -JIB-101-SL
An export client M/s Shanbeg Exports of your branch receives an export order for export of handicraft items to US under a letter of credit of $ 30000. It is stated that your bank can issue another credit in favour of local supplier/manufacturer from whom the exporter is to procure the material. Under which of the following categories, such letter of credit can be classified:
a red clause letter of credit
b green clause letter of credit
c stand by letter of credit
d transferable letter of credit
e back to back letter of credit
Answer: e back to back letter of credit
Question 43: SLBMG-JAIIB#9462900411- -JIB-101-SL
A bank can purchase NPA from another bank, if in the books of selling bank, the account was NPA for ____:
a 2 years
b 3 years
c 4 years
d 5 years
e 7 years
Answer: a 2 years
Question 44: SLBMG-JAIIB#9462900411- -JIB-101-SL
If NPA is purchased from X bank by Y Bank and Y bank wants to sell it to Z bank, what is the minimum period for which the account should remain with bank Y:
a: 6 months
b: 12 months
c: 15 months
d 18 months
e: 36 months
Answer: c: 15 months
Question 45: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the risk weightage for capital adequacy purpose, in case of credit card:
a: 25%
b: 50%
c: 100%
d: 125%
e: 150%
Answer: d: 125%
Question 46: SLBMG-JAIIB#9462900411- -JIB-101-SL
In case of SJSRY, what is the minimum no. of members of women group under DWCUA:
a: 25
b: 20
c: 15
d 12
e: 10
Answer: e: 10
Question 47: SLBMG-JAIIB#9462900411- -JIB-101-SL
Under the Nayak Committee recommendations, the quantum of working capital limits from the bank is minimum ____ of the projected annual sales:
a: 5%
b: 15%
c: 20%
d: 25%
e 3%
Answer: c: 20%
Question 48: SLBMG-JAIIB#9462900411- -JIB-101-SL
A bearer cheque of Rs. 3 lac has been presented by Mr. Sham Kumar, the payees of a cheque drawn on your branch. He being new to the bank has shown inability to give identification:
a in case of bearer cheque, no identification is needed irrespective of the amount of the cheque
b Identification is required to safe guard the interest of the bank
c Identification is essential for all instruments for getting protection
d Identification would not be required if presented with pass book
e none of the above
Answer: a in case of bearer cheque, no identification is needed irrespective of the amount of the cheque
Question 49: SLBMG-JAIIB#9462900411- -JIB-101-SL
Mr. Dharmvir has given a power of attorney to Mr. Ashok Kumar for operation of accounts and dealing with negotiable instruments drawn in favour of Mr. Dharmvir. What will be the correct endorsement by Mr. Ashok Kumar among the following:
a Dharmvir sd/ by Ashok Kumar
b Ashok Kumar sd/ Ashok Kumar
c For Dharmvir sd/ Dharmvir by Ashok Kumar
d For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)
e For Ashok Kumarsd/ by Ashok Kumar
Answer: d For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)
Question 50: SLBMG-JAIIB#9462900411- -JIB-101-SL
Mr. Jugraj Lal comes to open a saving bank account with your branch. He also has a cheque of Rs.500, which he would deposit in the account when account is opened. Which among the following can be accepted as first deposit in the account?
a cash only
b cheque
c bank draft
d bankers’ cheque
e any of the above
Answer: e any of the above
Question 51: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the target (quota) for SC/ST and other backward classes under PMEGP:
a 40%, 10%
b 30%, 20%
c 22.5%, 27%
d 27%, 22.5%
e 20%, 30%
Answer: c 22.5%, 27%
Question 52: SLBMG-JAIIB#9462900411- -JIB-101-SL
In case of a partnership firm, the managing partner execute the documents on behalf of firm. If you are branch auditor, what would you suggest to the branch staff ?
a: All the partners sign all documents
b: All partners sign in both the capacities i.e. jointly and severally
c partners sign in their individual capacity
d: Both the above
e: None of the above
Answer: b: All partners sign in both the capacities i.e. jointly and severally
Question 53: SLBMG-JAIIB#9462900411- -JIB-101-SL
For Term loan the period of limitation is three years from:
a: Date of documents
b: Date of default
c: Date of sanction
d: Due date of each instalment
e date of default of each instalment
Answer: d: Due date of each instalment
Question 54: SLBMG-JAIIB#9462900411- -JIB-101-SL
In case the debt is acknowledged after the expiry of limitation period, the limitation period will be:
a: Extended by another three years from this date
b: Extended for another three years from date of expiry
c extended for3 years
d: Not be extended
e: None of the above
Answer: d: Not be extended
Question 55: SLBMG-JAIIB#9462900411- -JIB-101-SL
In term loans, NPA is the account when:
a: Principal has remained past due for 3 months wef March 31, 2004
b: Interest, principal or other charges, remain unpaid for a period more than 90 days wef March 31, 2004
c Interest and principal have fallen due and paid after more than 90 days
d: any of the above which ever is earlier
e: None of the above
Answer: b: Interest, principal or other charges, remain unpaid for a period more than 90 days wef March 31, 2004
Question 56: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the extent up to which the credit is allowed to women as part of the overall credit being extended by the banks:
a 3% of their priority sector credit
b 5% of their total credit
c 5% of their net bank credit
d 5% of their priority sector credit
e 5% of their incremental deposits
Answer: c 5% of their net bank credit
Question 57: SLBMG-JAIIB#9462900411- -JIB-101-SL
In case of advances covered under ECGC or DICGC guarantee, the provision under provisioning guidelines is to be made for the outstanding balance:
a: After reducing the amount of cover available from the outstanding balance
b: Without taking into account the above said cover
c reducing the amount if actually recovered
d: Any of the above
e: None of the above
Answer: a: After reducing the amount of cover available from the outstanding balance
Question 58: SLBMG-JAIIB#9462900411- -JIB-101-SL
In the group approach system of lending, the following norms have been prescribed by RBI relating to ceiling on exposure of banks:
a: 15% of capital fund for individual borrower
b: 40% of capital fund for borrowing group
c 5% for infrastructure projects
d: a and b above
e: a to c above
Answer: d: a and b above
Question 59: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the %age of loan accounts that is to be routed through rural or semi urban branches in DRI advances:
a 2/3rd
b 50%
c 40%
d 1/3rd
e 30%
Answer: a 2/3rd
Question 60: SLBMG-JAIIB#9462900411- -JIB-101-SL
Wha tis the reservation for women in SGSY scheme:
a: 60%
b: 50%
c: 40%
d 30%
e: 25%
Answer: c: 40%
Question 61: SLBMG-JAIIB#9462900411- -JIB-101-SL
There are certain financial instruments whose prices are derived from the price of the underlying currency or interest rate or stocks etc. These are known as:
a Derivatives
b Securitisation
c Leasing
d Factoring
e Venture Capital Funding
Answer: a Derivatives
Question 62: SLBMG-JAIIB#9462900411- -JIB-101-SL
The concepts of Monetary Aggregates and Liquidity aggregates such as M1, M2, M3 and L1, L2 and L3 have been revised on the recommendations of which of the following committees:
a Narasimham Committee
b Rangarajan Committee
c Raja Chelliah Committee
d Y V Reddy Committee
e L C Gupta Committee
Answer: d Y V Reddy Committee
Question 63: SLBMG-JAIIB#9462900411- -JIB-101-SL
A process, through which, a member owned organisation becomes a shareholder-owned company, is called:
a Demutulisation
b Dematerialisation
c Factoring
d Derivatives
e Securitisation
Answer: a Demutulisation
Question 64: SLBMG-JAIIB#9462900411- -JIB-101-SL
After the conversion of hypothecation into pledge the bank will have the same right as that of:
a: Pledgee
b: Mortgagee
c: Pledger
d: hypothecatee
e: Hypothecator
Answer: a: Pledgee
Question 65: SLBMG-JAIIB#9462900411- -JIB-101-SL
On CRR the banks get interest ___ on ___:
a: bank rate, entire balance
b: 3.5%, eligible balance
c: bank rate, eligible balance
d 3.5%, entire balance
e: discretion of RBI.
Answer: b: 3.5%, eligible balance
Question 66: SLBMG-JAIIB#9462900411- -JIB-101-SL
Charge created by a borrower in favour of a secured creditor on movable assets without possession, is known as per provisions of ___ Act:
a: Lien, Indian Contract Act
b: Assignment, SARFAESI Act
c: Mortgage, Transfer of Property Act
d: Hypothecation, Indian Contract Act
e none of the above
Answer: e none of the above
Question 67: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the funding ratio for SGSY scheme within state and central govt.:
a: 25:75
b: 33:67
c: 50:50
d 75:25
e: 80:20
Answer: a: 25:75
Question 68: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which two currencies have been included by RBI in its REER:
a: Japanese Yen and Chinese Yuan
b: Chinese Yuan and Singapore Dollar
c Singapore Dollar
d: Australian Dollar
e: none of the above
Answer: b: Chinese Yuan and Singapore Dollar
Question 69: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which among the following is limited to 150% of threshold yield under the Rashtriya Krishi Bima Yojna?
a the amount of loan to be covered by the insurance policy
b the amount of premium on the insurance policy
c the amount of the insurance
d the amount of claim under the insurance policy
e any of the above, whichever is higher
Answer: c the amount of the insurance
Question 70: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the amount of claim which will be paid immediately by the Credit Guarantee Fund to a bank if the amount of loan in default is Rs.16 lac on the eligible date :
a Rs.16 lac
b Rs.12 lac
c Rs.9 lac
d Rs.3 lac
e none of the above
Answer: c Rs.9 lac
Question 71: SLBMG-JAIIB#9462900411- -JIB-101-SL
The funding in the ratio of 75:25 is done by Central and State Govt. for which of the following Govt. sponsored schemes:
a PMRYScheme
b SJSRY scheme
c DRI scheme
d SLRS scheme
e all the above
Answer: b SJSRY scheme
Question 72: SLBMG-JAIIB#9462900411- -JIB-101-SL
Your branch proposes to sanction loan to a retail trader for the commodities which are not covered by the definition of essential commodities. What is the maximum amount of loan that could be sanctioned to the borrower:
a Rs.3 lac
b Rs. 5 lac
c Rs.10 lac
d Rs. 20 lac
e no ceiling
Answer: c Rs.10 lac
Question 73: SLBMG-JAIIB#9462900411- -JIB-101-SL
A letter of credit is silent about the currency in which the insurance is to be obtained. In which of the following will it be obtained?
a Indian rupees
b Euro
c US Dollar
d Pound
e currency of the letter of credit
Answer: e currency of the letter of credit
Question 74: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which of the following confers on the trustees, the power to obtain loan:
a: Trust deed
b: Trust deed writer
c: Beneficiary
d resolution from the trustees
e: Commissioner of Charity
Answer: a: Trust deed
Question 75: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the amount of minimum paid up capital and capital adequacy ratio % for a new private bank:
a: Rs.100 cr, 15%
b: Rs.200 cr, 15%
c: Rs.200 cr, 12%
d: Rs.200 cr, 10%
e: Rs.300 cr, 10%
Answer: e: Rs.300 cr, 10%
Question 76: SLBMG-JAIIB#9462900411- -JIB-101-SL
On which kind of the following deposits, the senior citizens can be allowed additional interest as per RBI directives?
a current deposits
b saving bank deposits
c term deposits
d a to c all
e b and c only
Answer: c term deposits
Question 77: SLBMG-JAIIB#9462900411- -JIB-101-SL
How many review of the Annual Policy Statement (Credit Policy) are made by RBI and when:
a One, during October
b two, during April and October
c Three, during July / October / January
d Four, during April, July, Oct
e none of the above
Answer: c Three, during July / October / January
Question 78: SLBMG-JAIIB#9462900411- -JIB-101-SL
The maximum level upto which SLR is maintainable is:
a 25%
b 30%
c 35%
d 40%
e 45%
Answer: d 40%
Question 79: SLBMG-JAIIB#9462900411- -JIB-101-SL
As per the loan delivery system recommended by Jilani Committee, the borrowers are required to split their fund based working capital limits or MPBF into:
a term loan and bills
b demand loan and cash credit
c working capital demand loan and cash credit
d cash credit and bills
e term loan and cash credit
Answer: c working capital demand loan and cash credit
Question 80: SLBMG-JAIIB#9462900411- -JIB-101-SL
Prompt corrective action is initiated by RBI in respect of which of the following:
a when capital adequacy is below %
b when net NPAs are above 10%
c when return on assets falls below 0.25%
d a to c all
e a and b
Answer: d a to c all
Question 81: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the level of net NPA of a bank when on satisfying other conditions, the bank can declare dividend:
a less than 9%
b less than 8%
c less than 7%
d less than 5%
e less than 4%
Answer: d less than 5%
Question 82: SLBMG-JAIIB#9462900411- -JIB-101-SL
A cheque with amount in words written as rupees five thousand is presented but the amount in figures is not stated. The payee insists on immediate payment:
a cheque can be paid after consulting the drawer only
b cheque can be paid after obtaining indemnity from the payee and the drawer.
c cheque can be paid for amount in words u/s 18 of Negotiable Instrument Act
d cheque being Inchoate Instrument cannot be paid
e none of the above
Answer: d cheque being Inchoate Instrument cannot be paid
Question 83: SLBMG-JAIIB#9462900411- -JIB-101-SL
A bearer cheque has been drawn in favour of Mrs. Durani, who wants to negotiate it further. How she will endorse the cheque:
a Durani (Mrs.)
b Mrs. Durani
c sd/ ( Mrs. Durani)
d Any of above
e none of the above
Answer: e none of the above
Question 84: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which among the following is the most appropriate crossing to consider it a `special crossing’?
a `Pay X through his bank’ within two transverse lines
b Payee’s account through his bank without transverse lines
c Name of the bank without transverse lines
d Name of the bank within transverse lines
e c and d
Answer: e c and d
Question 85: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which among the following is provided u/s 22 of Negotiable Instrument Act in the context of a Bill of Exchange:
a drawee to be permitted 48 hours for acceptance of the bill
b drawee can accept the bill by signing on the face of the bill
c presentation of the bill should be at the business place of the drawee
d drawee can be allowed 3 days of grace for making payment
e drawee can make the payment on next preceding business day if the payment falls due on a holiday
Answer: d drawee can be allowed 3 days of grace for making payment
Question 86: SLBMG-JAIIB#9462900411- -JIB-101-SL
A term loan is sanctioned for:
a: Working capital purposes
b: Investment in current assets
c: Investment in fixed assets
d both for fixed assets and current assets
e: any of the above
Answer: c: Investment in fixed assets
Question 87: SLBMG-JAIIB#9462900411- -JIB-101-SL
What is the maximum amount of donation that a profit making bank make during a year:
a: 5% of its profits after tax
b: 4% of its audits profits
c: 2% of the profits of the previous year
d: 1% of the profits of the previous year
e maximum Rs.5 lac
Answer: d: 1% of the profits of the previous year
Question 88: SLBMG-JAIIB#9462900411- -JIB-101-SL
A borrowing firm submits to the Commercial Bank, the balance sheet with following particulars:
Capital and Reserves 24 lac
term loans 16 lac
Trade Creditors 12 lac
Expenses payable 8 lac
Fixed assets 24 lac
Security deposit for Electricity 4 lac
Preliminary expenses 2 lac
Stocks 30lac Bills receivable/book debts 14 lac
Cash and bank balances 6 lac
Net profits 6 lac
Sales 120 lac
On the basis of above information, please work the following ratio?
88 Current ratio would be:
a 1.10:1
b 1.15:1
c 1.20:1
d 1.25:1
e 1.33:1
Answer: d 1.25:1
Question 89: SLBMG-JAIIB#9462900411- -JIB-101-SL
What will be the quick ratio:
a 0.85:1
b 0.75:1
c 0.50:1
d 0.40:1
e 0.30:1
Answer: c 0.50:1
Question 90: SLBMG-JAIIB#9462900411- -JIB-101-SL
The debt equity ratio would be:
a 2.1:1
b 1.76:1
c 1.34:1
d 1.10:1
e 0.73:1
Answer: e 0.73:1
Question 91: SLBMG-JAIIB#9462900411- -JIB-101-SL
Debtor’s velocity ratio would be:
a 1.4 months
b 1.6 months
c 1.8 months
d 2.0 months
e 2.2 months
Answer: a 1.4 months
Question 92: SLBMG-JAIIB#9462900411- -JIB-101-SL
What will be stock turnover ratio:
a 3 times
b 4 times
c 5 times
d 5.5 times
e 6 times
Answer: b 4 times
Question 93: SLBMG-JAIIB#9462900411- -JIB-101-SL
Under Uniform Practices for Documentary Credit, if quantity is not specified to be exceeded or reduced, it should not exceed the tolerance level of:
a 1%
b 2%
c 3%
d 5%
e 10%
Answer: d 5%
Question 94: SLBMG-JAIIB#9462900411- -JIB-101-SL
In case interest rates rise during a year, the current market value of existing Govt. securities generally:
a remain constant
b increases
c falls
d moves up after falling initially
e none of the above
Answer: c falls
Question 95: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which of the following is not a term which is used in the context of Asset Liability Management ?
a Maturity Buckets
b Capital Fund
c Residual maturity
d Interest rate risk
e none of the above
Answer: b Capital Fund
Question 96: SLBMG-JAIIB#9462900411- -JIB-101-SL
Which agency processes the loan applications under the scheme Swarn Jayanti Shehri Rozgar Yojna:
a DRDA
b Distt Industry Centre
c KVIC
d Urban local body
e Reserve Bank
Answer: d Urban local body
Question 97: SLBMG-JAIIB#9462900411- -JIB-101-SL
Under which of the following categories, a contract of insurance is categorised?
a contract of agency
b contract of guarantee
c contract of indemnity
d contract of guarantee and indemnity
e an actionable claim
Answer: c contract of indemnity
Question 98: SLBMG-JAIIB#9462900411- -JIB-101-SL
Under the provisions of law, what is the maximum no. of companies, on the Board of Directors of which, an individual can become a Director:
a 5
b 10
c 15
d 20
e 25
Answer: c 15
Question 99: SLBMG-JAIIB#9462900411- -JIB-101-SL
As per RBI directives, what amount a bank is expected to transfer to statutory reserve fund :
a 20% of profits beforetax
b 25% of the profits
c 20% of profits before declaration of dividend
d 25% of profits before declaration and dividend and tax
e 25% of profits before dividend declaration
Answer: e 25% of profits before dividend declaration
Question 100: SLBMG-JAIIB#9462900411- -JIB-101-SL
A cheque of Rs.15000 issued in favour of M/s Manish Kumar & Sons is deposited by the proprietor of the firm Mr. Manish Kumar in his personal saving bank account, which the collecting bank refuses to collect, to guard itself against conversion, while Manish Kumar insists on that:
a the stand taken by the bank is correct since the cheque belonging to the firm cannot be collected for the account of individual
b the stand taken by Manish Kumar is wrong as it is discretion of the bank to decide whether to collect or not
c stand taken by the bank is incorrect since in the case of proprietorship, the account of the firm and that of the individual are considered in the same name and same capacity
d cheque can be collected only if Manish Kumar provides an indemnity
e none of the above
Answer: c stand taken by the bank is incorrect since in the case of proprietorship, the account of the firm and that of the individual are considered in the same name and same capacity
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