JAIIB Practice Test Online | Principles & Practices of Banking

JAIIB - Principles and Practices of Banking Mock Test

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In the last post you have seen important Banking Abbreviations for JAIIB exam and in this post you’ll see some of the most frequently asked and useful sample questions for your upcoming JAIIB Examination in paper of “Principles & Practices of Banking”. Practice these questions before you appear in your next JAIIB Exam. Answers are also given with each questions.

Model questions on Principles & Practices of Banking for JAIIB Exam:

1. Insurance Business in India is Controlled by which of the following:
a) SEBI, b) IRDA, c) RBI, d) None of These

Answer: b) IRDA – Insurance Regulatory and Development Authority

2. Mutual Fund Business in India is controlled by which of the following:
a) SEBI, b) IRDA, c) RBI, d) None of These
Answer: a) SEBI

3. Promissory note is defined in which section of NI (Negotiable Instrument) act?
a) 2, b) 3, c) 4, d) 5, e) 6
Answer: c) 4
Promissory note is defined in section 4 of NI act.

4. Cheque and Bill of Exchange are respectively defined in which sections of NI (Negotiable Instrument) act?
a) 2 and 3, b) 3 and 2, c) 5 and 6, d) 6 and 5, e) None of these
Answer: d) 6 and 5
Checque is defined in section 6 and Bill of Exchange is defined in section 5 of NI act.

5. Crossing on Cheque is a direction of …….. ?
a) endrser to endorsee, b) payee to drawer, c) drawer to payee, d) none of the above
Answer: d) none of the above
Crossing is a direction of drawer to drawee Bank.

6. Payment in due course is defined under which section of NI act?
a) 10, b) 12, c) 13, d) 15 e) none of these
Answer: a) 10

7. The right of set-off of a banker has been conferred on the banks in which of the following:
a) RBI Act, b) Negotiable Instrument act, c) Criminal Procedure Code, d) Indian Contract Act e) none of these
Answer: d) Indian Contract Act

8. In a public limited company, maximum and minimum no. of shareholders is:
a) No limit and 5, b) No limit and 7, c) 1000 and 5, d) 100 and 10, e) none of these
Answer: b) No limit and 7

9. When a cheque is drawn on a bank, the bank is called …………
a) Payee, b) Endorsee, c) Drawer, d) Drawee, e) None of these
Answer: d) Drawee

10. As per the provisions of NI Act, 1881 a banker gets protection for payment of a cheque only if it is a:
a) Payment in due course b) Holder in due course c) Holder for value d) All of the above
Answer: a) Payment in due course

11. Identify the correct matching with the Committees:
iClassification of AssetsANayak Committees
iiComputerisation in BanksBTarapore Committees
iiiWorking Capital for SSIsCNarashimha Committees
ivCapital Account ConvertabilityDRangrajan

a) i-B,ii-D,iii-C,iv-A
b) i-D,ii-C,iii-A,iv-B
c) i-C,ii-D,iii-A,iv-B
d) i-B,ii-A,iii-C,iv-D

Answer: (c)

12. A banker is expected to honour the cheques within the specified banking hours as per Section ……. of NI Act.
a) 22 b) 25 c) 31 d) 65
Answer: (d) Section 65

13. 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.
Answer: (d)

14. 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.
Answer: (d)

15. Syndicated credit means ?
a) A facility which is granted to a Syndicate of stock brokers
b) An agreement between two or more lending institutes to provide the credit facilities to a borrower on the basis of common loan documentation
c) Credit facilities sanctioned by Syndicate Bank
d) None of these
Answer: (b)

16. Which of the following is not correct ?
A) RBI appoints CEOs of private sector banks.
B) CRR is higher than SLR
C) RBI maintains the financial stability of financial institutions in India.
D) RBI is the regulator of banks and the securities market in India.
a) A and D, b) B and C, c) B and D, d) A and C, e) all
Answer: (c)

More Questions will be added soon..

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