Friday, April 25, 2014

MODEL QUESTIONS --- JAIIB principles of banking important questions

  1) An account holder draws a cheque on a :
a)Banker of the Payee
b)Banker of the Drawee
c)Banker of the Drawer
d)Banker of the Endorsee                                              (c)
      2)Obligation of a Banker to maintain secrecy is applicable to
           a) Existing deposit accounts
                     b) Existing safe deposit accounts
                    c) Closed deposit accounts
                    d) a,b and c  (existing/closed)                               (d) 

                 3)A holder for value is :
                    a) A bank allows one of its clients to withdraw against
                       clearing of a cheque.
                    b) A bank which maintains  high net worth customers accounts
                    b) A bank which collects cheques for non customers
                    c) A bank which handles high value clearing cheques  (a)
                 4)State which of  the following is/are incorrect:
                   i) A Certificate of Deposit (CD) is issued by a banker
                  ii) In a garnishee order the banker on whom the order is issued
                      is judgement debtor’s debtor
                 iii) A book debt advance is secured by a mortgage
                  iv) CAMEL model is used by RBI inspectors
                  a) i and ii
                  b) ii
                  c) ii and iv
                  d) iii                                                                                                   (d)

                 5) RTGS stands for :
                    a)Real Time Settlement System
                    b)Real Time Gross Settlement System
                    c)Real Gross Settlement System
                    d)Real Gross Time Settlement System                (b)
      6) Your bank receives a cheque in inward clearing which  has
                     not been signed by the account holder. Which one of the
                     following reasons you will select to return the cheque?
                 a) Cheque is not signed by the payee
                 b) Refer to the drawer
                 c) Cheque is not signed by the drawee
                 d) Cheque is not signed by the endorsee                                           (b)

                  7) A purchaser of  a demand draft for Rs.500,000.00, lost the DD
                    To obtain a duplicate draft he needs to furnish         
                    a)A Power of  Attorney
                    b)A letter
                    c)An Indemnity
                    d)Amandate                                                                         (c )

                8) Which of the following is a material alteration?
                    a) An open cheque is crossed with two lines across the cheque
                    b) The purchaser of  a DD changes the word “order” to “bearer”
                    c) In a bearer cheque the holder of the cheque changes the
                        word “bearer” to “order” by striking “bearer” with a line
                   d) A blank endorsement on a cheque is converted into a full
                       endorsement                                                                              (b)

         9)  At a Big shopping mall,Hari withdraws cash from ATM of
                  Central Bank of India. Central Bank of  India is a:

                a) Paying Banker
      b) Collecting Banker
      c)Advising Banker
      d) Correspondent Banker                                                                 (a)

               10) )An order cheque is endorsed as “without recourse to me “ by
                      the endorser. This endorsement is known as
                a)Blank endorsement
                b)Restrictive endorsement
               c)Endorsement in full                                                                          (d)
              d)Sans recourse endorsement

                   11)  Match the following:
                    i)IRDA                                           A)  Insurance
                   ii)Garnishee Order               B)  Judgement debtor
                  iii)ATMs                                       C) Assignment
                 iv)Book debt                                  D) E- Banking

                 a) i-D,ii-C,iii-A,iv-B
                 b) i-A,ii-B,iii-D iv-C
                 c) i-B,ii-A,iii-D,iv-C
                 d)i-D,ii-C,iii-B,iv-A                                                         (b)                                      
                  12) Match the following:
             i)Classification of  Assets                     A) Narasimham
            ii)Allonge                                            B) Endorsement
           iii)Funds Transfer                                C) EFT
           iv)Crossed cheques                              D) Collecting banker

              a) i-A,ii-B,iii-C,iv-D
              b) i-D,ii-C,iii-A,iv-B
              c) i-A,ii-D,iii-B,iv-C
             d) i-B,ii-A,iii-C,iv-D                                                                    (a)
              13) Which one of  the following is secured by a mortgage?
                a) A cash credit against inventory
                b) An overdraft against book debts
                c) A term loan against land and building
                d) An educational loan                                                 (c )

              14) In case of a Non Resident Indian which of the following
                   is permitted?
                a)A SB account in joint names in Candian dollars
                b)A Fixed deposit account in Australian dollars
                c)A NRNR account in Indian rupees
                d)An EEFC account in Indian rupees                         (b)

              15)Once a Bearer is always a bearer is applicable in respect of
               a) A bill of  exchange payable after 90 days
               b) A cheque
               c) A demand promissory note
               d) A certificate of deposit                                           (b)

             16) State which of  the following statement/s is/are correct?
               i) KYC norms is applicable only to deposit accounts
              ii) Either or survivor is applicable to all joint accounts
             iii) A cash credit facility is a fund based limit
              iv) An incomplete negotiable instrument is called as an
                  inchoate instrument
              a) i and ii
              b)ii and iii
              c)iii and iv
              d)iv                                                                             (c)

            17) A stop payment instruction of  a cheque can be issued by:
             a) The payee
             b) The endorsee
             c) The drawer
             d) The drawee                                                             (c)

           18) A customer has the flexibility to select the number of
                 instalments and also vary his monthly instalment amounts
                subject to certain conditions. Identify the account
            a) An EEFC account
            b) A variable recurring deposit account
           c)  A flexi deposit account
           d) A roaming current account                                      (b)