Model Question of Jaiib

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  • Topic: Fractional-reserve banking, Cheque, Bank
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  • Published : December 29, 2012
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MODEL QUESTIONS --- JAIIB

PRINCIPLES OF BANKING – MODULE A & B

1) When a cheque is drawn on a bank, the bank is called the
a)Payee
b)Drawee
c)Drawer
d)Endorsee(b)
2) One of the State Government avails of a temporary financial assistance from Reserve Bank of India. This type of finance is called :
a)Overdraft
b)Temporary loan
c)Short term finance
d) Ways and Means advance(d)

3) Maximum Bank Rate is:
a) 6%
b) 20%
c) 25%
d) None(d)

4) Obligation of a Banker to maintain secrecy is applicable to a) Only in case of existing deposit accounts
b) Only in respect existing loan accounts
c) Only in case of closed accounts
d) All types of deposit/loan accounts (existing/closed)(d)

5) Bank A allows one of its clients to withdraw against
clearing of a cheque. The banker is called as:
a) Collecting and Paying banker
b) Holder in due course
c) Holder for value
d) Reimbursement banker (c)

6) As per the provisions of NI Act,1881 a banker gets protection for payment of a cheque only if it is a :
a) Holder in due course
b) Payment in due course
c) Holder for value
d) All of the above(b)
7) At a Railway station, you withdraw cash from ATM of State Bank of India. SBI is a : a) Paying Banker
b) Collecting Banker
c) Advising Banker
d) Issuing Banker(a)

8) Management of a Bank vests with
a) Reserve Bank of India
b) Asset Liability Committee (ALCO)
c) Board of Directors
d) None of the above(c)

9) Hari issues a stop payment instructions to his banker to Stop payment of a cheque for Rs,20,000.00. This is
a) A request from Hari
b) An intimation from Hari
c) An advice from Hari
d) A mandate from Hari(d)
10) Except one of the following instruments others are issued at discount. Identify the exception:
a) A Certificate of Deposit (CD)
b) A Treasury Bill (TBill)
c) A Commercial Paper (CP)
d) A Fixed Deposit (FD)(d)

11) Cash Reserve Ratio (CRR) is to be maintained on Net
Demand and Time Liabailities (NDTL).SLR is to be
maintained on:
a) Total Demand and Time Liabilities
b) Net Demand and Time Liabilities
c) Total Demand and Time Assets
d) Net Demand and Time Assets (b) 12) Garnishee order is issued by:
a) Judgement Debtor
b) Judgement Creditor
c) Judgement Debtor’s Debtor
d) None of the above (d)
13) CAMEL model is used by
a) Bankers to evaluated a credit proposal
b) Bankers to manage their risks
c) RBI inspectors to evaluate banks functions
d) Merchant Bankers to evaluate portfolio investment (c) 14) One of your NRI customers wants to place FCNR
deposits in Canadian $ with your bank. You will
a) Accept his request and open a FCNR a/c
b) Will not accept his request to open FCNR a/c in
Canadian $
c) Will inform the customer to place FCNR in any
one of the currencies (US$/GBP/JPY/EUR)
d) Both b and c (a)
15) Which one of the Non Resident Deposit schemes
is not permitted.
a) FCNR a/cs
b) NRNR a/cs
c) NRE a/cs
d) NRO a/cs (b)

16)At the time of receipt of a garnishee order your customer’s accounts showed :
i)SB a/c uncleared balance Rs.2,000.35 (Cleared balance Rs 550.35)
ii) An overdue fixed deposit for Rs.25,753.22 matured one week earlier iii)OD account showed a credit balance of Rs.8,728.96
iv)CC account showed a credit balance of Rs,2,247.18
Indicate the amount which can be attached by the garnishee order? a) Rs.28,550.75
b) Rs.10,228.96
c) Rs.37,729.71
d) Rs 4,247.53...
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