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Principle internet question

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Principle internet question

  1. 1. JAIIB Sample Papers 2012- I:-1) Reserve Bank of India’s functions are classified into:a) Supervisory & Regulatoryb) Promotional & Developmentalc) Refinance Activitiesd) All of the aboveAns:- (d)2) Minimum Bank Rate is:a) 3%b) 4%c) 5%d) NoneAns:- (d)3) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notesa) 10b) 18c) 22d) 26Ans:- ( c )4) KYC meansa) Know Your Customer very wellb) Know Your existing Customer very wellc) Know Your prospective Customer very welld) Satisfy yourselves about the customer’s identity and activities.Ans:- (d)5) In a Garnishee Order, the banker on whom garnishee order served is:a) Judgement Debtor’s Creditorb) Judgement Creditor’s Creditorc) Judgement Creditor’s Debtord) Judgement Debtor’s DebtorAns:- (d)6) Sec 131 of NI Act,1881 extends protection to thea) Paying Bankerb) Collecting Bankerc) Advising Bankerd) Issuing BankerAns:- (b)7) Hypothecation is applicable in the case of
  2. 2. a) Movable goodsb) Immovable propertyc) Book debtsd) Corporate guaranteeAns:- (a)8) A cheque is dated 12/05/05.the due date is:a) 12/08/05b) 14/09/05c) 12/11/05d) NoneAns:- (d)9) Charge created on LIC Policy is:a) Hypothecationb) Pledgec) Assignmentd) MortgageAns:- ( c )10) Your bank grants a working capital finance to ABC & Co, a partnership firm, againsthypothecation of inventory. The charge is to be registered with Registrar of Companies withina) 30 days from the date of advanceb) 30 days from the date of hypothecation agreementc) 30 days from the date of sanction of loand) NoneAns:- (d)11) Which one of the following is not barred by law of limitation?a) Pledgeb) Hypothecationc) Banker’s liend) GuaranteeAns:- ( c )12) The term “Credit Management” coversa) Capital adequacy normsb) Risk management including Asset/Liability managementc) Credit appraisal – decision and review of loans & advancesd) All of the above
  3. 3. Ans:- (d)13) Bank’s Assets are classified in to standard assets, substandard assets doubtful assets andloss assets, based on the recommendations of -------------------- Committeea) Rangarajanb) Narasimhamc) Ghoshd) TandonAns:- (b)14) The time taken to convert cash into raw materials, semi finished goods, finished goods andinto cash , is known asa) Trade cycleb) Cash cyclec) Operating cycled) Revolving cycleAns:- ( c )15) A company which pools money from investors and invests in stocks, bonds, shares is calleda) A bankb) An insurance companyc) Bancassuranced) Mutual FundAns:- (d)16) Bancassurance isa) An insurance scheme to insure bank depositsb) An insurance scheme to insure bank advancesc) A composite financial service offering both bank and insurance productsd) A bank deposit scheme exclusively for employees of insurance companiesAns:- ( c )17) John & James are friends aged 14 & 15 respectively. They want to open a joint account inyour bank. You will
  4. 4. a) Allow them to open a joint account to be operated jointlyb) Allow them to open a joint account with operating instructions Either or Survivorc) Allow them to open a joint account with operating instructions Former or Survivord) Allow them to open a joint account with operating instructions Any one or SurvivorAns:- (a)18) Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed byMr.Atmaram as director of the Ltd company. The banka) Can honour the cheque only after obtaining confirmation from other directorsb) Can honour the chequec) Cannot hounour the chequed) The company should issue a stop payment instructions to the bankAns:- (b)19) Tele banking service is based ona) Virtual Bankingb) Online Bankingc) Voice processingd) Core BankingAns:- ( c )20) In a securitisation deal, the role of a Special Purpose Vehicle (SPV) isa) To acquire large Non Performing Loans (NPA)b) To acquire such loans from a bank or financial institutionc) To acquire such loans for a transfer price, with or without recoursed) To manage the acquired loans for the purpose of realization or holds them as investment tillmaturity (d)21)Securitisation is a process of acquiring the loans classified asa) Bookdebtsb) Performing debtsc) Bad debtsd) Non performing debts
  5. 5. Ans:- (d)22)The minimum percentage of Priority Sector advances to be maintained by foreign banks inIndiaa) 40%b) 18%c) 32%d) 60%Ans:- ( c )23) Loan for fish rearing is covered under Prirority Sector as ----------- advancesa) Direct Agricultureb) Indirect Agriculturec) Self Employment Schemed) Allied to indirect AgricultureAns:- (a)24) Cash Budget is a statement ofa) Cash-Non cash fundsb) Cash receipt and Cash paymentsc) Another name for cash flowd) NoneAns:- (b)25) In bank’s parlance credit risk in lending isa) Default of the banker to maintain CRRb) Default of the banker to maintain SLRc) Default of the banker to release credit to the customerd) Default of the customer to repay the loanAns:- (d)26) The apex institution which handles refinance for agriculture and rural development iscalled:a) RBIb) SIDBI
  6. 6. c) NABARDd) SEBIAns:- ( c )27) Long Form Audit Report (LFAR) is prepared and submitted bya) RBI inspectorsb) Internal inspectorsc) Statutory auditorsd) Concurrent auditorsAns:- ( c )28) As per FIMMDA’s guidelines, the Mid-Office is responsible for:a) Dealing activitiesb) Risk Managementc) Reconciliationd) Confirmation of dealsAns:- (b)29) Interest is calculated on actual/365 days basis in respect of the following products, exceptone :a) Call Moneyb) Notice Moneyc) Term Moneyd) GOI dated securitiesAns:- (d)30) Which was the first Mutual Fund started in India:a) SBI Mutual Fundb) Kotak Pioneer Mutual Fundc) Indian Bank Mutual Fundd) None of the aboveAns:- (d)31) The regulator for Mutual Funds in India is:a) FIMMDA
  7. 7. b) AMFIc) RBId) SEBIAns:- (d)32) FIMMDA’s general principles and procedures are applicable to:a) Fixed Income Marketsb) Money Marketsc) Derivatives Marketsd) All of the aboveAns:- (d)33) Your bank’s customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00 The CC accountshows a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:a) Debtor/Creditorb) Creditor/Debtorc) Bailor/Baileed) Bailee/BailorAns:- (a)34) The right of set-off is:a) Customer’s Rightb) Customer’s Obligationc) Banker’s Rightd) Banker’s DiscretionAns:- (d)35)Which of the following forms of business are permissible under BR Act:a) Borrowingb) Issuance of Letters of Creditc) Buying and selling of bulliond) All of the aboveAns:- (d)36) A Co-Operative Bank operating in different States are regulated by:a) State Co-Operative Societies Actb) Banking Regulation Act
  8. 8. c) Multi Unit Co-Operative Societies Actd) Banking Laws (applicable to Co-Operative Societies)Ans:- ( c )37) 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)38) Law of limitation is not applicable in respect of :a) Advance against pledge of sharesb) CC granted against hypothecation of inventoryc) Term loan secured by mortgage of Plant & Machineryd) Bank Term DepositAns:- (d)39) A bank in India, wants to undertake capital market activities, it should:a) Obtain special license from AMFIb) Obtain special license from FIMMDAc) Both a and bd) Register with SEBIAns:- (d)40) FIMMDA stands for:a) Foreign Exchange Markets and Derivative Marketsb) Fixed Income Markets Money Markets and Derivatives Marketsc) Fixed Income Markets and Derivatives Marketsd) None of the aboveAns:- (b)41) The Capital Adequacy Ratio is :a) 6%
  9. 9. b) 8%c) 9%d) 10%Ans:- ( c )42) Except one of the following others are known as Non Fund based facilities:a) Letters of Creditb) Bank Guaranteesc) Co-acceptance of Billsd) Trust ReceiptAns:- (d)43) FIMMDA’s guidelines cover the following products, except one:a) Call Moneyb) Cross Currency Interest Rate swapsc) Commercial Paperd) Certificate of DepositAns:- (b)44) Except one of the following others are part of Public Sector Banks:a) State Bank of Hyderabadb) Central Bank of Indiac) Regional Rural Bank, sponsored by a nationalized bankd) HDFC BankAns:- (d)45) A banker is expected to honour the cheques within the specified banking hours as perSection of NI Act,1881a) 22b) 25c) 31d) 65Ans:- (d)

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