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MUMBAI
INDIAN INSTITUTE OFBANKING AND FINANCE,
EXAMINATION: 1AIIB
(I) PRINCIPLES OF BANKING
1 Message switcher is used to :
(a) Store andIorward data tolarge number oI terminals over a single communication channel
(b) Sendmore than one signal simultaneously over a single communication channel
(c) Intercept and handle communication activities Ior the host computer
(d) All oI these
Correct Answer (a)
2. NABARDextends reIinance to :
(a) State Land Development Banks and State Co-operative Banks.
(b) Regional Rural Banks.
(c) Commercial Banks and other Financial Institutions approved by RBI.
(d) All oI these
Correct Answer (d)
3. The number oI product items in a product line is called:
(a) Count
(b) Depth
(c) Length
(d) Width
Correct Answer (c)
4. Which oI the Iollowingis aIIectedby mistakes made by a Iirm in Pricing?
(I) ProIit, (II) Growth, (III) Future Prospects
(a) (I)
(b) (II) and (III)
(c) (I) and (II)
(d) (I), (II) and(III)
Correct Answer (d)
5. Which oI the Iollowing statements is not true?
(a) Aminor may be appointed as an agent to act on behalI oI his principal.
(b) Aminor agent cannot be held responsible to his principal.
(c) The principal may be held responsible to the third parties in respect oI the acts oI his minor
agent.
(d) Aminor may employ anagent to act on his behalI.
Correct Answer (d)
6. Non-resident (External) Accounts are opened in the Iorm oI :
(a) Savings accounts
(b) Current accounts
(c) Recurring and Iixed deposit accounts
(d) All oI these
Correct Answer (d)
7. Cash credit Iacility against merchandise (i.e., goods) is allowed by way oI :
(a) Hypothecation (b) Pledge (c) (a) and (b) (d) None oI these
Correct Answer (c)
Question paper pattern Ior JAIIB examination
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8. Avalidpledge can be inrespect oI :
(a) goods or anyother movable property (b) Stocks and shares
(c) documents oI title to goods (d) All oI these
Correct Answer (d)
9. Syndicated credit means:
(a) an agreement between two or more lending institutions to provide the credit Iacilities to a
borrower on the basis oI common loan documentation.
(b) AIacility which is granted toa Syndicate oI stock brokers.
(c) Credit Iacilities sanctioned by Syndicate Bank
(d) None oI these
Correct Answer (a)
10. Agarnishee order is operative only when the relationship between two is oI :
(a) Bailor and Bailee (b) Debtor and Creditor
(c) Trustee and BeneIiciary (d) Principal and Agent
Correct Answer (b)
(II) ACCOUNTING & FINANCE FOR BANKERS
1. What annual rate oI simple interest was paid iI Rs. 500 earned Rs. 55 as interest in 2 years and 9
months?
(a) 3
(b) 2
(c) 3.5
(d) 4
Correct Answer (d)
2. At a certain rate oI simple interest, a sum doubles itselI in10 years. It will treble itselI in..
(a) 12 years
(b) 15 years
(c) 18 years
(d) 20 years
Correct Answer (d)
3. Recording business transactions on the basis oI documents is to observe the accounting assumption
oI ...
(a) Money measurement
(b) Goingconcern
(c) Accounting equity
(d) VeriIiable objectives
Correct Answer (d)
4. Credit entries will decrease the balance oI ...
(a) Capital Account
(b) Cash Account
(c) Creditor A/c
(d) Purchases ReturnsAccount
Correct Answer (b)
5. Sales Book is maintained to record ..
(a) sale oI Iixed assets
(b) all cash sales oI goods only
(c) all credit sales oI goods only
(d) all sales (cash and credit)
Correct Answer (c)
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6. When Aadvances money toBin the course oI joint venture, then Adebits such money to..
(a) Joint Venture a/c
(b) Joint Bank a/c
(c) B's Personal a/c
(d) Expenses a/c
Correct Answer (a)
7. Maintenance oI Iixed assets is an example oI ..
(a) revenue expenditure
(b) capital expenditure
(c) deIerred revenue expenditure
(d) All oI the above
Correct Answer (a)
8. Income & ExpenditureAccount is a ..
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Either Real Account or Personal Account
Correct Answer (c)
9. Goodwill is an example oI ..
(a) Iictitious asset
(b) current asset
(c) tangible asset
(d) intangible asset
Correct Answer (d)
10. In the event oI death oI a partner, the accumulated proIits andlosses are sharedby the partner in ..
(a) capital ratio
(b) newratio
(c) old ratio
(d) sacriIice ratio
Correct Answer (c)
(III) LEGALASPECTS OF BANKING
1. What is nomination?
(a) AIacilitygivento depositors by the government.
(b) It conIers a right to the nominee to receive payment oI a deposit aIter death oI depositors
(c) It is a process oI appointing legal heir by the depositor
(d) It is a part oI will on behalI oI a depositor
Correct Answer (b)
2. As per section 5 (I) oI the BankingRegulation Act, 1949, time liabilities men:
(a) time deposits
(b) liabilities payable aIter a speciIied time
(c) liabilities which are not demand liabilities
(d) None oI these
Correct Answer (c)
3. Acompany :
(a) Is a legal entity
(b) Has perpetual succession
(c) Has its own common seal
(d) All oI these
Correct Answer (d)
4. The deIinition oI 'contract oI indemnity' as given in the Indian Contract Act includes:
(a) cases where the loss is caused by the conduct oI the promisor himselI or by the conduct oI any
other person
(b) Implied promises to indemniIy
(c) Cases where loss arises Irom accidents and events not depending onthe conduct oI the promisor
(d) None oI these
Correct Answer (a)
5. What is meant by securityagreement?
(a) An agreement, instrument or any other document or arrangement under which security interest
is created in Iavour oI secured creditor
(b) Agreement given by the Borrower to the secured creditor permitting the securitization company
to acquire the security asset
(c) Any agreement that creates securityin Iavour oI securitization company
(d) Agreement enteredinto between securitization company and the Borrower
Correct Answer (a)
6. What is settlement under the Banking Ombudsman Scheme?
(a) An agreement reached by the parties either by conciliation or mediation by the Banking
Ombudsman
(b) The order or award passedby the Banking Ombudsman
(c) Settlement reached out oI court by the parties
(d) Withdrawal oI the complaint aIter mutual settlement
Correct Answer (a)
7. The diIIerence between Bailment and Pledge is :
(a) Pledge is the Bailment oI goods Ior speciIic purpose i.e., security Ior a loan
(b) Pledgee has right to sale, the Bailee does not have
(c) Pledgee has no right oI using the goods pledged, where as bailee can
(d) All oI these
Correct Answer (d)
8. Which oI the Iollowing are not documents oI title?
(a) Quotation obtained Ior the goods.
(b) Railway Receipt
(c) Bill oI Lading/Dock warrant
(d) Warehouse certiIicate
Correct Answer (a)
9. The Ieatures oI FOB(Free On Boardor Rail) are :
(a) Seller has to deliver goods at the ship named in the contract.
(b) Seller has to bear all the expenses up to and including shipment on behalI oI buyer.
(c) The buyer has to bear Ireight insurance and subsequent expenses.
(d) All oI these
Correct Answer (d)
10. Whena guaranteed loan is repaidby the guarantor the :
(a) guarantor steps in to the shoes oI the bank
(b) securities in possession oI creditors will be handed over to him
(c) guarantor is not entitled tothe securities
(d) (a) and (b) above
Correct Answer (d)
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