JAIIB QUESTIONS AND MODEL QUESTION PAPER :
1
1. Every banking company has to prepare its balance
sheet and profit and loss account as stipulated in sec.29 of the ___ Act.
a.
RBI Act
b.
Companies Act
c.
Banking Regulation Act
d.
Both RBI and Banking Regulation Act
Ans : C
2.
2. For unclaimed deposit in respect of Reinvestment
plan term deposit the same will figure in the return.
a.
When the said deposit has not completed 10 years
b.
When the said deposit has completed 10 years
c.
Provided the period of 10 years starts from the
expiry period of the deposit
d.
10 years counted from the date of the deposit
Ans : C
3.
3. A Drawee Bank will get protection in respect of
a.
When the Account holder? Signature is forged
b.
When the payee?s signature is forged
c.
When one of the joint account holders signature
is forged
d.
When the cheque is signed by a person other than
the drawer(who is not authorized by the account holder.
Ans : B
4.
4. RBI provides temporary advances to meet
immediate needs when there is interval between expenditures and flow of
revenue. Such facilities are provided to both central and state government.
a.
Temporary overdrawing
b.
Tide over credit facility
c.
Ways and means advances
d.
Line of credit
Ans : C
5.
5. Loans charging exorbitant rates of interest
a.
Substantial interest
b.
Usufructuary loans
c.
Anomalous loans
d.
Usurious loans
Ans : D
6.
6. Identify the incorrect statement with respect to
preferential payment
a.
Depositors in savings bank accounts up to Rs.
250= and then other depositors upto Rs.,250= get priority over other creditors
b.
After making these payments, the balance will be
for general creditors
c.
The balance left out is then allocated for
payment of further amounts due to the depositors
d.
Finally the amount left is paid to depositors
covered by the DICG Act
Ans : D
7.
7. A bank has paid a forged cheque. They filed a
suit against the collecting banker as well as the payee who received the money.
Whether drawee bank would succeed?
a.
Yes
b.
No
c.
If the collection banker has acted in good faith
and without negligence they would loose the case
d.
The paying bank need not suffer
Ans. B
8.
8. The directors of a banking company shall not
hold office for more then 8 years continuously. However it is not applicable to
the chairman
a.
Not more then 5 years
b.
Not only chairman but also a whole time director
c.
In addition to the both even executive director
d.
In addition to b & c even for RBI nominated
director
Ans: B
9.
9. These banks have to display in a conspicuous
place in their principal office a copy of the last audited balance sheet and
profit and loss account. This has to be done not later than the first Monday in
august of any year in which it carries on business.
a.
Nationalized bank
b.
State bank of india also
c.
Co operative banks
d.
None of these
Ans. D
1 10
A nationalized bank has to hold an annual
general meeting of shareholders within ____ of the date of forwarding the
balance sheet and related statements \ returns to the central government
a.
Within 4 weeks
b.
Within 8 weeks
c.
Within 6 weeks
d.
Within 3 months
Ans : C
1 11.
Return on unclaimed deposits to cover all
deposits not operated for
a.
10 years
b.
12 years
c.
18 years
d.
20 years
Ans : A
1 12.
Identify the correct relationship between the
customer – banker
a.
Deposit=creditor ? debtor
b.
Deposit = donor ? trustee
c.
Deposit = Agent – principal
d.
Deposit = debtor – creditor
Ans: A
1 13.
Which statement is not appropriate withrespect
to banking ombudsman.
a.
Failure to honour LC commitment
b.
Inordinate delay in the payment or collection of
cheques
c.
Non issue of drafts to non customers
d.
Non of the above
Ans : B
1 14.
Authorization under the law for a debtor to
postpone payment of dues for a specified time is known as
a.
Postponement
b.
Deferred
c.
Deferment
d.
None of
these
Ans : D
1 15.
Acceptance of deposits by non banking financial
companies is regulated by
a.
RBI
b.
Central government
c.
Both A & B
d.
Registrar of companies
Ans : A
1 16.
Which statement is not correct with regard to
foreign banks.
a.
Have to deposit with RBI Rs. 20 lacs when they
have place of business in Kolkata
b.
20% of the profit in india to be deposited with
rbi’
c.
15% of the profit to be deposited with rbi and
not 20%
d.
The securities deposited can be replaced
Ans : C
1 17.
Provisions of banking regulation act applicable
to
a.
State co operative bank
b.
Central co operative bank
c.
Primary co operative bank
d.
All of these
Ans : D
1 18.
The shareholders of an acquired bank have a
right to get compensation under sec 36AG of the banking regulation act. The
amount thereof will be determined as provided in the fifth schedule to the act
after consultation with the RBI
a.
True
b.
False
c.
Not banking regulation act
d.
Companies act
Ans : A
1 19.
Which of the following statements in incorrect
with respect to RRB?
a.
A person qualified to act as an auditor of
companies under sec 226 of the companies. Act is qualified to be an auditor of
a RRB.
b.
The board consists of a chairman appointed by
the RBI
c.
RRBs were first set up in 1975 under the
regional rural banks ordinance, 1975. The ordinance was later replaced by the
regional rural banks act 1976.
d.
The central government is empowered to give
directions to RRBs on matters of policy involving public interest
Ans : B
2 20.
Which one is not the permitted banking business
a.
Buying or selling or bartering of good directly
or indirectly
b.
Acquire, construct and maintain any building for
its own purpose
c.
Negotiating of loans and advances
d.
Undertake and execute trust.
Ans : A
2 21.
These are banking companies operating only in a
limited geographical area
a.
Command area banks
b.
Regional rural banks
c.
Satellite banks
d.
None of these
Ans : D
2 22.
A collecting banker will get protection under NI
act 1881, only when he collects a cheque
a.
For his customer
b.
As an agent
c.
Collects a crossed cheque
d.
All the these
Ans : D
2 23.
Collection of third party cheque is
a.
Prohibited
b.
Not prohibited
c.
Avoided
d.
Not protected
Ans : B
2 24.
The director of a banking company is exempted
under sec 10 of the BR act, from the requirement of holding qualification
shares.
a.
The correct one is not director but the managing
director
b.
The whole? Time chairman
c.
The whole time chairman and the managing
director
d.
The whole time chairman or the managing director
Ans : D
2 25.
On an order cheque the word order has been
altered as bearer. The cheque has been received at the front office for
payment. The counter clerk refused payment on the ground the alteration needs
the full signature of the drawer (who is not present)
a.
The counter clerk warned and paid the amount
b.
Counter clerk is wrong
c.
Counter
clerk paid since its not a material alteration
d.
He is not incorrect since it is a material
alteration
Ans : D
2 26.
Which is not part of sec131 of NI act, 1881
protection to collecting banker.
a.
The banker to act in good faith & without
negligence
b.
Should collect for any one including a customer
c.
The cheque so collected must have been crossed
generally or specially before receipt by the collecting banker
d.
None of these
Ans : B
2 27.
A paying banker has to return an instrument
(cheque) for the reason the cash credit limit is fully utilized. Choose the appropriate
reason.
a.
Insufficient funds
b.
Not arranged for
c.
Limit full
d.
None of these
Ans : D
2 28.
Find out the correct one (state bank of india
& subsidiary banks)
a.
The appointment of auditors is done by RBI in
consultation with the central government
b.
The state bank of saurashtra was constituted
under the state bank of india (subsidiary banks act 1959
c.
The chairman and managing director of SBI are
appointed for a period not exceeding seven years and are not eligible for
reappointment
d.
The central government may direct any subsidiary
bank in consultation with RBI acquire the business of any bank.
Ans : A
2 29.
As per sec 12(1) of the BR act the subscribed
capital of a banking company shall not be less than half of its authorized
capital and the paid up capital shall not be less than half of its subscribed
capital.
a.
The above statement is not incorrect
b.
The above statement is not as per BR act
c.
RBI act has discussed the above
d.
The above statement is incorrect
Ans : A
3 30.
The additional director may be appointed by the
RBI
a.
In the interest of banking policy
b.
In the public interest
c.
In the interest of the depositors of the banking
company
d.
All the above
Ans : D
3 31.
The paid up capital of a banking company
represents
a.
Nominal capital
b.
Amount subscribed
c.
Amount collected
d.
Contribution of the sponsor bank
Ans : C
3 32.
The RBI empowered to order amalgamation of two
banking companies under sec 396 of the companies act. But such power has to be
exercised only after consultation with the central government.
a.
True
b.
RBI is not empowered but central government is
empowered and they have to consult RBI
c.
Central government can direct and no need for
any consultation with RBI
d.
Rbi has been empowered to go ahead with
amalgamation
Ans : B
3 33.
Apart from making regular inspection, reserve
bank is also empowered to conduct
a.
Further inspection
b.
Surprise verification
c.
Scrutiny
d.
Checking
Ans : c
3 35.
As per the banking regulation act nomination
facility is not applicable in respect of
a.
Deposits
b.
Safe custody articles
c.
Safe deposit locker
d.
None of these
Ans : D
3 36.
Identify the incorrect statement (regarding
payment of dividend to shareholders by banking
companies)
a.
No dividend is payable until all capitalized
expenses are completely written off
b.
Dividend may be paid without writing of
depreciation
c.
Preliminary expenses, share selling commission
and organization expenses will come under item A
d.
The above are as per section 15 of the Reserve
Bank of India Act
Ans : D
3 37.
The holding of shares by a banking company in
any company as pledge, morgagee or absolute owner shall not exceed.
a.
25% of the paid up share capital and reserves of
that company or the paid up capital of the banking company
b.
30% of the paid up share capital and reserves of
that company or the paid up capital of the banking company
c.
25% of the paid up capital of that company or
the paid up capital and reserves of the banking company
d.
30% of the paid up capital of that company or
the paid up capital and reserves of the banking company
Ans : D
3 38.
Identify the correct order in case RRB share
holding pattern norms, 35%50%15% issued capital
a.
35% nationalized bank 50% RBI : 15% SBI
b.
35% sponsor bank : 50% state govt : 15% central
govt
c.
35% apex bank : 50% central govt : 15% state
govt
d.
35% sponsor bank : 50% central govt: 15% state
govt
Ans : D
3 39.
Branch licensing (identify the odd one)
a.
Changing the location of an existing place of
business within the same city. Town or village would not need prior permission.
b.
Opening of a temporary place of business upto
one month for extending banking business for any exhibition mela or conference
requires prior permission
c.
For RRBs permission is given by RBI
d.
For co-operative banks RBI permission is a must
Ans : D
4 40.
The banking ombudsman passes an order after
affording the parties reasonable opportunity to present their case. The order
is known as
a.
Preliminary order
b.
Interim order
c.
Final order
d.
None of these
Ans : D
4 41.
A committee established under the regulations
framed by reserve bank of india under
sec 58 of the reserve bank of india act to exercise powers of
supervision and regulation under that act and the BR act
a.
Committee for financial supervison
b.
Board for financial regulation
c.
Committee for financial regulation
d.
Board for financial supervision
Ans : D
4 42.
A collecting banker will not get protection on
a.
A crossed cheque
b.
A specially crossed cheque
c.
An uncrossed cheque
d.
None of the above
Ans : C
4 43.
RBI previous approval not required in respect of
a banking company
a.
Appointment of auditor
b.
Reappointment of auditor
c.
Removal of auditor
d.
None of the above
Ans : D
4 44.
Apart from giving various directions, RBI may
also
a.
Caution
b.
Give advises
c.
Both a and b
d.
Instruct the banks to carry out certain
directions
Ans
:C
