As you want to get the JAIIB question papers on Accounting and Finance previous year

question papers so here is the information of the same for you:

1) The apex institution which handles refinance for agriculture and rural development is
called:
a) RBI
b) SIDBI
c) NABARD
d) SEBI
Ans:- (c)
2) Long Form Audit Report (LFAR) is prepared and submitted by
a) RBI inspectors
b) Internal inspectors
c) Statutory auditors
d) Concurrent auditors
Ans:- (c)
3) As per FIMMDAs guidelines, the Mid-Office is responsible for:
a) Dealing activities
b) Risk Management
c) Reconciliation
d) Confirmation of deals
Ans:- (b)
4) Interest is calculated on actual/365 days basis in respect of the following products,
except one :
a) Call Money
b) Notice Money
c) Term Money
d) GOI dated securities
Ans:- (d)
5) Which was the first Mutual Fund started in India:
a) SBI Mutual Fund
b) Kotak Pioneer Mutual Fund
c) Indian Bank Mutual Fund

d) None of the above

Ans:- (d)
6) The regulator for Mutual Funds in India is:
a) FIMMDA
b) AMFI
c) RBI
d) SEBI
Ans:- (d)
7) FIMMDAs general principles and procedures are applicable to:
a) Fixed Income Markets
b) Money Markets
c) Derivatives Markets
d) All of the above
Ans:- (d)
8) Your banks customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00
The CC account shows a credit balance of Rs,10,205.00.
The relationship between your bank and XYZ Ltd is:
a) Debtor/Creditor
b) Creditor/Debtor
c) Bailor/Bailee
d) Bailee/Bailor
Ans:- (a)
9) The right of set-off is:
a) Customers Right
b) Customers Obligation
c) Bankers Right
d) Bankers Discretion
Ans:- (d)
10) Which of the following forms of business are permissible under BR Act:
a) Borrowing

b) Issuance of Letters of Credit

c) Buying and selling of bullion
d) All of the above
Ans:- (d)
11) Reserve Bank of Indias functions are classified into:
a) Supervisory & Regulatory
b) Promotional & Developmental
c) Refinance Activities
d) All of the above
Ans:- (d)
12) Minimum Bank Rate is:
a) 3%
b) 4%
c) 5%
d) None
Ans:- (d)
13) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes
a) 10
b) 18
c) 22
d) 26
Ans:- (c)
14) KYC means
a) Know Your Customer very well
b) Know Your existing Customer very well
c) Know Your prospective Customer very well
d) Satisfy yourselves about the customers identity and activities.
Ans:- (d)
15) In a Garnishee Order, the banker on whom garnishee order served is:
a) Judgement Debtors Creditor
b) Judgement Creditors Creditor

c) Judgement Creditors Debtor

d) Judgement Debtors Debtor
Ans:- (d)
1. Choose the wrong pair from the following. The information given in the pair is pertaining
to banking companies
(a) Demand Deposits - Compulsory deposits under excise rules
(b) rebate on bills discounted - unexpired discount
(c) Operating Expenses Schedule 14
(d) Other Income - Profit on sale of investments less loss on sale of investments
2. The name of the accounts with the coverage of various items in building that account is
given below. One of the items covered in on of the accounts is wrong. Select this account
(a) Closing balance of provisions held towards NPA - Opening Balance plus provisions made
during the year less write off of bad debts/write back of excess provisions
(b) Interest Earned - interest on advances plus income on investments plus interest on
deposit with RBI plus income earned by way of dividends from subsidiaries plus discount on
bills less unexpired discount
(c) Reserves & surplus - Opening balance plus additions during the year less deductions
during the year
(d) Term deposits - from banks and from Others
3. Identify a pair which is mismatch from the following pairs in respect of Company
Accounts
(a) Miscellaneous Expenditure Preliminary Expenses
(b) Contingent Liabilities footnote to balance sheet
(c) Debentures Unsecured Loans
(d) Outstanding Expenses Current Liabilities
4. Identify a pair which is mismatch from the following pairs in respect of Company
Accounts
(a) Discount on issue of shares Profit and Loss Account

(b) Bill discounted contingent liabilities

(c) Interest accrued and due on debentures Secured Loans
(d) Mortgage Loan Secured Loans
5. Companies are required to transfer certain percentage of their profit after tax to reserves,
to declare dividend. The various rates of transfer based on the rates of dividend are given
below in pair. Select the wrong pair.
(a) Rate of dividend exceeds 10% but not 12.50- Transfer to reserve @ Nil%
(b) Rate of dividend exceeds 12.50% but not 15%- Transfer to reserve @ 5%
(c) Rate of dividend exceeds 15% but not 20%- Transfer to reserve @ 7.50%
(d) Rate of dividend exceeds 20% - Transfer to reserve @ 10%
6. While preparing the final accounts of the company, the adjustments [(i) to (iv)] are to be
made by passing necessary entries. One of the entries passed is wrong entry. Select the
wrong entry.(i) Depreciate plant ,WDV of which is Rs.3,30,000 at 15% (ii) Write off
Rs.5,000 from Preliminary Expenses (iii) Half years debenture interest due (12% debentures
of Rs. 3,00,000) (iv) a claim of Rs. 25,000 for workmens compensation is disputed by the
company.
(a) Debit Depreciation on plant by Rs.49,500 credit plant by 49,500 AND Debit Profit & Loss
Account by 49,500 and Credit Depreciation on plant by 49,500
(b) Debit Profit and Loss Account by Rs.5,000 and Credit Preliminary Expenses
(c) Debit Debenture Interest by Rs.18,000 & Outstanding Liability for Deb. Interest by
18,000 AND Debit Profit and Loss Account by Rs.18,000 and Credit Debenture Interest by
Rs.18000
(d) Debit Wages by Rs.25,000 & Credit Outstanding Liability for Workers compensation AND
Debit Profit and Loss Account by Rs.25,000 and Credit Wages by Rs.25,000
7. While preparing the final accounts of the company, the adjustments [(i) to (iv)] are to be
made by passing necessary entries. One of the entries passed is wrong entry. Select the
wrong entry.(i) Provide dividend 5% of paid up share capital (Share capital of Rs. 5,00,000
consisting of shares of Rs. 10 each fully paid) (ii) Insurance for unexpired period is Rs.2000
(iii) A provision of Rs. 25,000 is to be made for income tax (iv) a provision of Rs. 5000 is to
be made for doubtful debts
(a) Debit Dividend by Rs.25000 & Credit Bank by Rs.25000

(b) Prepaid Insurance by Rs.2000 & Insurance by Rs.2000

(c) Debit Profit & Loss Account by Rs.25,000 & Credit Provision for Tax by Rs.25,000
(d) Debit Profit & Loss by Rs.5,000 & Credit Provision for doubtful debts by Rs.5,000
8. In respect of asset side of the balance sheet one of the items is presented in a proper
order, rests are disorderly. Select the orderly presented item from the following.
(a) Investments, Fixed Assets, Current Assets & Loan Advances, Profit & Loss Account(Dr.
balance), Miscellaneous Expenditure
(b) Fixed Assets, Investments, Current Assets & Loan Advances, Profit & Loss Account(Dr.
balance) , Miscellaneous Expenditure
(c) Fixed Assets, Investments, Current Assets & Loan Advances, Miscellaneous Expenditure,
Profit & Loss Account(Dr. balance)
(d) Fixed Assets, Current Assets & Loan Advances, Profit & Loss Account(Dr. balance),
Miscellaneous Expenditure
9. One of the statements in respect of Profit & Loss Adjustment account is incorrect, rest are
correct. Mark the incorrect sentence.
(a) The account is credited with closing balance of profit and loss account of last year
(b) The account is credited with current years net profit
(c) The account is debited with provision for taxes
(d) The account is debited with provision for dividend
10. The two portion of each pair relating to partnership accounts has got some relationship.
However one of the pairs is a mismatch and has no relationship. Select this pair from the
following
(a) Management of business - business may be run by one or some or all partner
(b) Treatment of losses - insolvency of a partner
(c) Loan from partners - No interest as partners are owners
(d) Goodwill - super profit method
11. The two portion of each pair relating to admission of a partner has got some

relationship. However one of the pairs is mismatch and has no relationship. Select this pair
from the following
(a) Admission of a partner - gain ratio
(b) Reserves & surplus - Old partners
(c) Goodwill - new partner
(d) Revaluation of assets & liabilities - Profit & Loss adjustment account
12. The two portion of each pair relating to retirement of a partner has got some
relationship. However one of the pair is mismatch and has no relationship. Select this pair
from the following
(a) Retirement - voluntary action
(b) Gain - retiring partner
(c) Share of goodwill - borne by continuing partners
(d) Reserve & surplus - belong to all partners
13. If the partners capital accounts are fixed, where will you record (either debit side or
credit side of which account ) the following transactions (i) Salary payable to partner (ii)
Fresh capital introduced by a partner (iii) Drawing made by a partner (iv) Share of profit
earned by a partner. The effect to one of the journal entries is wrongly given. Identify that
account from the following.
(a) Debit side of partners current account
(b) Credit side of partners capital account
(c) Debit side of partners current account
(d) Credit side of partners current account
14. L,K and P are partners. The following differences as listed at (i) to (iv) have arisen due
to misunderstanding. The answer to each point is given at (a) to (d). One of the solutions is
incorrect. Identify the wrong solution. (i) L used Rs.25,000 belonging to the firm and made
a profit of Rs.4,000. K wants the amount to be given to the firm (ii) P used Rs.10,000
belonging to the firm and suffered a loss of Rs. 3000. He wants the firm to bear the loss (iii)
L & K wishes to appoint S as new partner. P does not agree (iv) L has given loan of Rs.
50,000 to the firm, he wants interest at 6% ( there is no partnership deed)
(a) K is right .L must pay Rs.29,000 to the firm

(b) P is right . Firm should bear profit as well as losses.

(c) P is right. No new partner can be admitted without the consent of all.
(d) L is right. He is entitled for interest at 6% in the absence of partnership agreement.
15. Below are some statements about partnership. One of them is correct, identify that
statement.
(a) Partnership arises from reputation
(b) A partnership is formed only for a legal business
(c) The liability of partners is limited
(d) The business of the firm is conducted by two partners
16. O and P are two partners sharing profits in the ratio of 7:3. They admit Q into
partnership as a partner from 1st April 2006 on 3/7th share in the profit. What is the new
profit sharing ratio
(a) 14: 6 : 15
(b) 7: 3: 3
(c) 2: 2: 3
(d) None of the above
17. A firm earns Rs.10,000 as its normal profits. The rate of normal return being 10%. The
assets of the firm amount to Rs.72,000 and liabilities to Rs.24,000. Find out the value of
goodwill.
(a) Rs.52,000
(b) Rs.1,00,000
(c) Rs.28,000
(d) Nil
18. When a new partner gives cash for goodwill, the amount is credited to----(a) Goodwill account

(b) Capital account of new partner

(c) Cash account
(d) None of the above
19. If the goodwill account is raised for Rs.50,000, the amount is debited to----(a) The capital accounts of partners
(b) Goodwill account
(c) Cash account
(d) None of the above
20. A and B sharing profits and losses in the ratio of 2:1. C is admitted as partner giving
him share. The new profit sharing ratio will be----(a) 2:1:1
(b) 4: 4:3
(c) 3: 3: 2
(d) None of the above
21. If the adjustment in the values of assets at the time of the admission of a partner shows
a profit, it should be credited to the capital accounts of----(a) The old partners in their new profit-sharing ratio
(b) All partners in their new profit sharing ratio
(c) The old partners in their old profit sharing ratio
(d) None of the above
22. A, B and C are three partner sharing profits in the ratio of 3:1:1. C retires and his share
is purchased by B. the new profit sharing ratio shall be----(a) 3:1
(b) 7:3
(c) 3:2

(d) None of the above

23. On the retirement of the partner, the profits on revaluation of assets should be credited
to the accounts of----(a) All the partners in their profit sharing ratio
(b) The remaining partners in their new profit sharing ratio
(c) The remaining partners in their old profit sharing ratio
(d) None of the above
24. A, B and C share profits as 3:2:1. C retires. Calculate the gain ratio of A and B
(a) 3:2
(b) 1:1
(c) 2:1
(d) None of the above
25. Choose the incorrect statement in case of dissolution of partnership from the following
statements
(a) On the dissolution of the firm , first creditors like wages outstanding etc. will have to be
paid
(b) Goodwill will be raised in the books when a firm is dissolved
(c) The loan from the spouse of a partner is treated just like a loan from outside parties
(d) After the books are closed, no account will show any balance.
26. Choose the incorrect statement from the following statement which are pertaining to
company accounts
(a) The company is an artificial person
(b) A member of a company may bind the company by its actions.
(c) The shareholders are not liable for the acts of the company
(d) The premium received on shares may be distributed among shareholders.

27. A new company cannot issue shares----(a) at par

(b) at discount
(c) at premium
(d) none of the above
28. A company wishes to pay dividend on shares. State which of the following may be used
for the purpose.
(a) Premium of shares
(b) Profit on re-issue of forfeited shares
(c) General Reserve
(d) None of the above
29. If Rs.10 share has been issued at a premium of Rs.5, on which entire amount has been
called up, has been forfeited for non payment of Rs. 4, the Share Capital Account will be
debited by----(a) Rs.15
(b) Rs.10
(c) Rs.4
(d) Rs.6
30. Money received in advance from shareholder before it is actually called up by the
company is ----(a) Debited to Calls in arrears Account
(b) Debited to Calls in Advance Account
(c) Credited to Calls in Advance Account
(d) Credited to Share Capital Account
31. If a share of Rs.10 issued at a premium of Rs.1 on which Rs.9 ( including premium)

have been called and Rs.7( including premium) paid is forfeited, the capital account should
be debited by----(a) Rs.8
(b) Rs.10
(c) Rs.9
(d) Rs.7
32. Dividend are usually paid on
(a) Called up capital
(b) Paid up capital
(c) Authorised capital
(d) None of the above
33. Preliminary Expenses is----(a) Fictitious Asset
(b) Current liability
(c) Current asset
(d) None of the above
34. A and B are partners sharing profits in the ratio of 3:2. C is admitted as a partner. The
new profit sharing ratio among A, B and C is 4:3:2. Find out the sacrificing ratio
(a) 7:3
(b) 4:3
(c) 1:1
(d) None of the above
1) Reserve Bank of Indias functions are classified into:
a) Supervisory & Regulatory
b) Promotional & Developmental

c) Refinance Activities
d) All of the above
Ans:- (d)
2) Minimum Bank Rate is:
a) 3%
b) 4%
c) 5%
d) None
Ans:- (d)
3) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes
a) 10
b) 18
c) 22
d) 26
Ans:- ( c )
4) KYC means
a) Know Your Customer very well
b) Know Your existing Customer very well
c) Know Your prospective Customer very well
d) Satisfy yourselves about the customers identity and activities.
Ans:- (d)
5) In a Garnishee Order, the banker on whom garnishee order served is:
a) Judgement Debtors Creditor
b) Judgement Creditors Creditor
c) Judgement Creditors Debtor
d) Judgement Debtors Debtor
Ans:- (d)
6) Sec 131 of NI Act,1881 extends protection to the
a) Paying Banker
b) Collecting Banker
c) Advising Banker
d) Issuing Banker

Ans:- (b)
7) Hypothecation is applicable in the case of
a) Movable goods
b) Immovable property
c) Book debts
d) Corporate guarantee
Ans:- (a)
8) A cheque is dated 12/05/05.the due date is:
a) 12/08/05
b) 14/09/05
c) 12/11/05
d) None
Ans:- (d)
9) Charge created on LIC Policy is:
a) Hypothecation
b) Pledge
c) Assignment
d) Mortgage
Ans:- ( c )
10) Your bank grants a working capital finance to ABC & Co, a partnership firm, against
hypothecation of inventory. The charge is to be registered with Registrar of Companies
within
a) 30 days from the date of advance
b) 30 days from the date of hypothecation agreement
c) 30 days from the date of sanction of loan
d) None
Ans:- (d)
11) Which one of the following is not barred by law of limitation?
a) Pledge
b) Hypothecation
c) Bankers lien
d) Guarantee

Ans:- ( c )
12) The term Credit Management covers
a) Capital adequacy norms
b) Risk management including Asset/Liability management
c) Credit appraisal decision and review of loans & advances
d) All of the above
Ans:- (d)

13) Banks Assets are classified in to standard assets, substandard assets doubtful assets
and loss assets, based on the recommendations of -------------------- Committee
a) Rangarajan
b) Narasimham
c) Ghosh
d) Tandon
Ans:- (b)
14) The time taken to convert cash into raw materials, semi finished goods, finished goods
and into cash , is known as
a) Trade cycle
b) Cash cycle
c) Operating cycle
d) Revolving cycle
Ans:- ( c )
15) A company which pools money from investors and invests in stocks, bonds, shares is
called
a) A bank
b) An insurance company
c) Bancassurance
d) Mutual Fund
Ans:- (d)
16) Bancassurance is
a) An insurance scheme to insure bank deposits
b) An insurance scheme to insure bank advances

c) A composite financial service offering both bank and insurance products

d) A bank deposit scheme exclusively for employees of insurance companies
Ans:- ( c )
17) John & James are friends aged 14 & 15 respectively. They want to open a joint account
in your bank. You will
a) Allow them to open a joint account to be operated jointly
b) Allow them to open a joint account with operating instructions Either or Survivor
c) Allow them to open a joint account with operating instructions Former or Survivor
d) Allow them to open a joint account with operating instructions Any one or Survivor
Ans:- (a)
18) Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed by
Mr.Atmaram as director of the Ltd company. The bank
a) Can honour the cheque only after obtaining confirmation from other directors
b) Can honour the cheque
c) Cannot hounour the cheque
d) The company should issue a stop payment instructions to the bank
Ans:- (b)
19) Tele banking service is based on
a) Virtual Banking
b) Online Banking
c) Voice processing
d) Core Banking
Ans:- ( c )
20) In a securitisation deal, the role of a Special Purpose Vehicle (SPV) is
a) To acquire large Non Performing Loans (NPA)
b) To acquire such loans from a bank or financial institution
c) To acquire such loans for a transfer price, with or without recourse
d) To manage the acquired loans for the purpose of realization or holds them as investment
till maturity (d)
21)Securitisation is a process of acquiring the loans classified as
a) Bookdebts
b) Performing debts

c) Bad debts
d) Non performing debts
Ans:- (d)
22)The minimum percentage of Priority Sector advances to be maintained by foreign banks
in India
a
) 40%
b) 18%
c) 32%
d) 60%
Ans:- ( c )
23) Loan for fish rearing is covered under Prirority Sector as ----------- advances
a) Direct Agriculture
b) Indirect Agriculture
c) Self Employment Scheme
d) Allied to indirect Agriculture
Ans:- (a)
24) Cash Budget is a statement of
a) Cash-Non cash funds
b) Cash receipt and Cash payments
c) Another name for cash flow
d) None
Ans:- (b)
25) In banks parlance credit risk in lending is
a) Default of the banker to maintain CRR
b) Default of the banker to maintain SLR
c) Default of the banker to release credit to the customer
d) Default of the customer to repay the loan
Ans:- (d)
26) The apex institution which handles refinance for agriculture and rural development is
called:
a) RBI

b) SIDBI
c) NABARD
d) SEBI
Ans:- ( c )
27) Long Form Audit Report (LFAR) is prepared and submitted by
a) RBI inspectors
b) Internal inspectors
c) Statutory auditors
d) Concurrent auditors
Ans:- ( c )
28) As per FIMMDAs guidelines, the Mid-Office is responsible for:
a) Dealing activities
b) Risk Management
c) Reconciliation
d) Confirmation of deals
Ans:- (b)
29) Interest is calculated on actual/365 days basis in respect of the following products,
except one :
a) Call Money
b) Notice Money
c) Term Money
d) GOI dated securities
Ans:- (d)
30) Which was the first Mutual Fund started in India:
a) SBI Mutual Fund
b) Kotak Pioneer Mutual Fund
c) Indian Bank Mutual Fund
d) None of the above
Ans:- (d)
31) The regulator for Mutual Funds in India is:
a) FIMMDA
b) AMFI

c) RBI
d) SEBI
Ans:- (d)
32) FIMMDAs general principles and procedures are applicable to:
a) Fixed Income Markets
b) Money Markets
c) Derivatives Markets
d) All of the above
Ans:- (d)
33) Your banks customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00 The CC account
shows a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:
a) Debtor/Creditor
b) Creditor/Debtor
c) Bailor/Bailee
d) Bailee/Bailor
Ans:- (a)
34) The right of set-off is:
a) Customers Right
b) Customers Obligation
c) Bankers Right
d) Bankers Discretion
Ans:- (d)
35)Which of the following forms of business are permissible under BR Act:
a) Borrowing
b) Issuance of Letters of Credit
c) Buying and selling of bullion
d) All of the above
Ans:- (d)
36) A Co-Operative Bank operating in different States are regulated by:
a) State Co-Operative Societies Act
b) Banking Regulation Act
c) Multi Unit Co-Operative Societies Act
d) 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
b) Central Government 50%,State Government 15%,Sponsoring Bank
b) Central Government 15%,State Government 35%,Sponsoring Bank
b) Central Government 35%,State Government 50%,Sponsoring Bank

15%
35%
50%
15%

Ans:- (b)
38) Law of limitation is not applicable in respect of :
a) Advance against pledge of shares
b) CC granted against hypothecation of inventory
c) Term loan secured by mortgage of Plant & Machinery
d) Bank Term Deposit
Ans:- (d)
39) A bank in India, wants to undertake capital market activities, it should:
a) Obtain special license from AMFI
b) Obtain special license from FIMMDA
c) Both a and b
d) Register with SEBI
Ans:- (d)
40) FIMMDA stands for:
a) Foreign Exchange Markets and Derivative Markets
b) Fixed Income Markets Money Markets and Derivatives Markets
c) Fixed Income Markets and Derivatives Markets
d) None of the above
Ans:- (b)
41) The Capital Adequacy Ratio is :
a) 6%
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 Credit
b) Bank Guarantees
c) Co-acceptance of Bills
d) Trust Receipt
Ans:- (d)
43) FIMMDAs guidelines cover the following products, except one:
a) Call Money
b) Cross Currency Interest Rate swaps
c) Commercial Paper
d) Certificate of Deposit
Ans:- (b)
44) Except one of the following others are part of Public Sector Banks:
a) State Bank of Hyderabad
b) Central Bank of India
c) Regional Rural Bank, sponsored by a nationalized bank
d) HDFC Bank
Ans:- (d)
45) A banker is expected to honour the cheques within the specified banking hours as per
Section of NI Act,1881
a) 22
b) 25
c) 31
d) 65
Ans:- (d)

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)

5) Bank A allows one of its clients to withdraw against

clearing of a cheque. The banker is called as:

(d)

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 Debtors Debtor
d) None of the above
13) CAMEL model is used by
a) Bankers to evaluated a credit proposal
b) Bankers to manage their risks

(d)

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 customers

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

(c)

17)You receive a cheque in an overdraft account for Rs.27,000.00.

The debit balance in the account is Rs.30,000.00 and the OD
limit is Rs 55,000.00.What reason you will state while returning
a) Refer to drawer
b) Effects Not cleared
c) Exceeds arrangement
d) Endorsement not correct

(b)

18) Match the following:

i) Payment in Due Course

A) Insurance

ii) Karta

B) Cash Credit

iii) IRDA

C) HUF

iv) Hypothecation of InventoryD) Paying Banker

a) i-D,ii-C,iii-A,iv-B
b) i-A,ii-B,iii-C,iv-D
c) i-B,ii-A,iii-D,iv-C
d) i-D,ii-C,iii-B,iv-A

19) Match the following:

(a)

Identify the Committees:

i)Classification of Assets

A) Nayak

ii)Computerisation in Banks

B) Tarapore

iii)Working Capital for SSIs

C) Narasimham

iv)Capital Account Convertability

D) Rangarajan

a) i-B,ii-D,iii-C,iv-A
b) i-D,ii-C,iii-A,iv-B
c) i-B,ii-A,iii-C,iv-D
d) i-C,ii-D,iii-A,iv-B

(d)

20) Match the following:

i)Financial intermediaries

A) Mutual funds

ii)ATMs

B) E- Banking

iii)Certificate of Deposits

C) Money Markets

iv)Book debts

D)Assignment

a) i-C,ii-D,iii-A,iv-B
b) i-D,ii-C,iii-B,iv-A
c) i-A,ii-B,iii-C,iv-D
d) i-A,ii-C,iii-B,iv-D

(c)

21) RTGS stands for :

a)Real Time Settlement System
b)Real Time Gross Settlement System
c)Real Gross Settlement System
d)None of the above
22) The banker acts as a Bailee and the customer as Bailor,
this relationship is applicable:

(b)

a)when a bank lends funds to a corporate customer

b)when a bank accepts US$ FCNR deposits form a NRI customer
c)when a customer operates a safe deposit locker
d)when a customer keeps articles in safe custody with a bank (d)

23)One of your customers lost the Fixed Deposit Receipt issued

by the bank. To obtain a duplicate FD he needs to furnish
a)A Promissory note
b)A Guarantee
c)A Letter of Credit
d)An Indemnity bond

(d)

24) In a demand draft the word order is changed to bearer

by the holder of the dd. It is called as:
a)Endorsement
b)Material alteration
c)Crossing
d)None of the above
25) Capital adequacy is worked out based on:
a) Total demand and time liabilities
b) Net demand and time assets
c) Risk weighted assets

(b)

d) Risk weighted liabilities

(c)

26) One of your customers dies without leaving a will and

The court appoints a person to handle the customers
Property. Such a person is called as
a)An administrator
b)An executor
c)A liquidator
d)A successor

(a)

27)A negotiable instrument is endorsed as Pay to Raju only

This is called as:
a)Blank endorsement
b)Restrictive endorsement
c)Sans recourse endorsement
d) Endorsement in Full

(b)