In this article we have provided JAIIB Mcq with Answers Pdf 2021. There are 30 Mcq in this JAIIB Mcq with Answers Pdf 2021. This JAIIB Legal and Regulatory Aspects of Banking Mcq Pdf are essential for candidates to practice and solve the paper to get confidant about the upcoming exam. JAIIB Principles and Practices of Banking Questions with Answers will not only help you in the exams with time management but also with some of the repeated questions which will help you with the few marks which can lead to extra scores…!!!
JAIIB stands for Junior Associate of Indian Institute of Bankers.
JAIIB Legal and Regulatory Aspects of Banking Mcq Pdf
JAIIB Mcq with Answers Pdf 2021
1. RBI approved the currency futures in the following foreign currencies ______?
(a) Euro
(b) Pound
(c) Yen
(d) All the above
Correct!
Wrong!
2. How many Stock Exchanges are there in India?
(a) 2
(b) 3
(c) 21
(d) 23
Correct!
Wrong!
3. 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%
(c) Central Government 15%, State Government 35%, Sponsoring Bank 50%
(d) Central Government 35%, State Government 50%, Sponsoring Bank 15%
Correct!
Wrong!
4. A cheque issued by a Director of a Limited Company is presented for payment after death of the Director which the Bank pays, But the company raises the claim on the plea that Bank cannot pay such cheque after death of the Director?
(a) Bank cannot pay the cheque as the drawer expired
(b) Bank can pay the cheque as the company is still a legally competent person to contract signed as agent of the company
(c) Bank should contact the Co. because loss will be of the company is case of dispute
(d) B and c
(e) None of the above
Correct!
Wrong!
5. In case of a Deferred Payment Guarantee, normally _________ advance payment is made by the buyer of machinery to the supplier of the machinery, which is treated as margin by the bank?
(a) 5% to 10%
(b) 5% to 30%
(c) 10% to 15%
(d) 20% to 30%
Correct!
Wrong!
6. Your branch has sanctioned a cash credit limit of Rs.12 lac to M/s Ideal Pharmaceuticals. As at the close of July 31, it has been carrying stocks worth Rs.9 lac, sundry creditors of Rs.3 lac and book debts of Rs.6 lac. Bank has prescribed a margin of 25% on stocks and 30% on book debts, what is the maximum amount that can be withdrawn in the cash credit limit?
(a) Rs.8.70 lac
(b) Rs.8.30 lac
(c) Rs.12 lac
(d) Rs.6.75 lac
(e) Rs.7.25 lac
Correct!
Wrong!
7. A bank purchases a commercial complex from XYZ in order to make a loan. What is the disposal period _____, RBI discretion ________ to extend the said disposal period u/s ______ of Banking Regulation Act?
(a) 7 years, 5 years, Sec 9
(b) 7 years, 7 years, Sec 9
(c) 5 years, 7 years, Sec 6 (1)
(c) 5 years, 7 years, Sec 6 (1)
(d) 5 years, 5 years, Sec 6 (1)
Correct!
Wrong!
8. Private Banks and foreign banks are regulated by_____ Act for their constitution and _______ Act and _____ Act for their business of Banking?
(a) Companies Act, NI Act, RBI Act
(b) NI Act, B R Act, RBI Act
(c) Companies Act, B R Act, RBI Act
(d) Companies Act, B R Act, NI Act
Correct!
Wrong!
9. Which of the following cannot be included in value added services that are offered under wholesale banking by banks?
(a) Derivative desk
(b) Letter of credit
(c) Employee trust
(d) Channel financing
Correct!
Wrong!
10. In ______, each node is joined to the central node by a separate link?
(a) Star topology
(b) Bus topology
(c) Ring topology
(d) None of the above
Correct!
Wrong!
11. In star topology for a local area network, ______?
(a) Each node is joined to each other by a common link
(b) All nodes are linked to the server through individual nodes
(c) Each node is joined to the central node by a separate link
(d) The nodes are connected through a continuous cable
Correct!
Wrong!
12. What relationship is created when the bank collects a cheque in clearing?
(a) holder for value
(b) clearing member and principal
(c) agent and principal
(d) collecting bank and holder
(e) None of above
Correct!
Wrong!
13. In wholesale banking, banks normally do not deal with which of the following?
(a) Corporates including multinationals
(b) Trading houses
(c) Prime public sector companies
(d) None of the above
Correct!
Wrong!
14. RBI undertakes govt. business. Which among the following statements is not correct in this connection?
(a) RBI cannot refuse to transact banking business of Central Govt.
(b) RBI undertakes banking business of the State government as a result of agreement with respective State govt.
(c) RBI provides ways and means to advance the Central Govt. only and not the State govt.
(d) None of the above
Correct!
Wrong!
15. There are various restrictions on banks on the issues relating to – (A) shareholding, (B) directorship, (C) voting powers, which of these is correct, under the provisions of _____ Act?
(a) A to C all, Banking regulation Act
(b) A and B only, Banking regulation Act
(c) B and C only, Banking regulation Act
(d) A and C only, RBI Act
Correct!
Wrong!
16. Code for a bank’s commitment to customers is a minimum standard of service to individual customers. However, it does not cover which of the following areas?
(a) Deposit accounts
(b) Loans and advances
(c) Service charges
(d) None of the above
Correct!
Wrong!
17. A document is executed outside India and it requires payment of stamp duty in India. The duty can be paid on this document within ______?
(a) Before it is used in India
(b) Immediately when the document enters India
(c) Within 4 months from date of its execution abroad
(d) Within 3 months of its entry into India
Correct!
Wrong!
18. A computer network is used for which of the following?
(a) To share date
(b) To share software
(c) To share hardware
(d) All the above
Correct!
Wrong!
19. The acronym “PCR” stands for _____?
(a) Provision coverage ratio
(b) Prudential coverage ratio
(c) Premature cover ratio
(d) None of the Above
Correct!
Wrong!
20. “Bankers’ Lien” is called Implied Pledge, because _______?
(a) It is governed by an Agreement
(b) It is related to movable properties
(c) It is to secure a debt
(d) The Banker has a right to sell the security
Correct!
Wrong!
21. Guarantees covering a series of transactions, is known as ______?
(a) Continuing Guarantee
(b) Serial Guarantees
(c) Guarantees in Series
(d) Contingent Guarantee
Correct!
Wrong!
22. Banks are required to convey to the borrowers, the reasons in writing for rejection of their loan applications as part of _______?
(a) Code for Banks and Financial Institutions
(b) Fair Practices Code for Lenders
(c) Chapter for the Borrowers
(d) Courtesy
Correct!
Wrong!
- The cash budget method for sanction of working capital limits is useful in case of _____? (A) issuance of letter of credit (B) seasonal industries
(C) software development (D) firm financing
(a) A to D all
(b) B, C and D only
(c) A, C and D only
(d) A, B and C only
Correct!
Wrong!
24. Margin for working capital under 2nd method of lending suggested by Tandon Committee is _______?
(a) 20% of working capital limit
(b) 25% of maximum permissible bank finance
(c) 25% of current assets
(d) 5% of projected sales
Correct!
Wrong!
25. “Interest Corridor” includes _______?
(a) Base rate and savings rate
(b) Bank rate and Reverse Repo rate
(c) Base rate and Repo rate
(d) Repo rate and Reverse Repo rate
Correct!
Wrong!
26. Asset-Liability mismatch usually happens in _______?
(a) Home Loan and Infrastructure Project Financing
(b) Education loan and personal loan
(c) Personal loan and marriage loan
(d) Travel loan and marriage loan
Correct!
Wrong!
27. “Syndicate Bank opened an account in the name of M/s. Axle Conductor Industries Ltd. with proprietor R.K. Vyas. The introduction was given by one Nanjunde Gowda, Who was having a small shop just opposite the bank’s branch. No information was sought or inquiry held, as to the incorporation certificate of the Ltd. Company nor were any Memorandum of Articles copies obtained. One demand draft for Rs.2,51,125 was collected by Syndicate Bank for the account holder company. The High Court of Karnataka (Syndicate Bank vs. Jaishree Industries AIR 1994 kar. 315) decided the case.” Which of the following is correct?
(a) In order to get protection under section 131 of N.I. Act, an essential requirement is that the bank should receive payment for a customer and account opening procedure should be done properly and be verified (which was missing in the case). Hence the bank was negligent in collecting drafts.
(b) In order to get protection under sec.10 of N.I.Act, wherein two conditions must be satisfied (i) in good faith and without negligence and (ii) entitled to receive payment. Both the conditions are satisfied and Syndicate bank will be protected.
(c) In order to get protection for drafts collected by Syndicate Bank, protection is available under section 85A of N.I. Act. to the bank. Court decided the case in favour of the bank.
(d) None of the above.
Correct!
Wrong!
28. Major benefits of Centralized Business solutions or Core Banking Solutions (CBS) include _______? (A) it relieves branches of jobs like data backup, MIS generation (B) attracts low cost initially (C) enables centralized management information and decision support (D) standardization of branch automation software using single version
(a) A to D all
(b) A, B and C only
(c) A, B and D only
(d) A, C and D only
Correct!
Wrong!
28. The process where data is written on two or more hard discs simultaneously over different channels is called ______?
(a) Disk mirroring
(b) Disk duplexing
(c) Disk maneuvering
(d) Server copying
Correct!
Wrong!
29. Account holder Animesh K draws a cheque for Rs. 5,000 favouring Rajesh (a minor aged 13 years) or bearer. Rajesh presents the cheque on the counter duly signed on the back. What should the banker do with the cheque of a minor?
(a) Refuse to pay, since no contractual capacity
(b) pay the cheque after inquiring with Animesh K
(c) pay to Rajesh without any responsibility of bank
(d) Section 26 N.I. Act, 1881, does not allow minor to receive payment
Correct!
Wrong!
30. Which of the following does not match?
(a) Modem – converts digital signals into analog and signals to digital
(b) Twisted pair cable consists of two insulated copper wire
(c) Message switch is used to store and forward data to large no. of terminals over a single communication channel
(d) Multiplexer is used to send only one signal over a multi communication channel
Correct!
Wrong!
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