MODEL QUESTIONS --- JAIIB PRINCIPLES OF BANKING MODULE B

1) An account holder draws a cheque on a : a)Banker of the Payee b)Banker of the Drawee c)Banker of the Drawer d)Banker of the Endorsee

(c)

2)Obligation of a Banker to maintain secrecy is applicable to a) Existing deposit accounts b) Existing safe deposit accounts c) Closed deposit accounts d) a,b and c (existing/closed) (d) 3)A holder for value is : a) A bank allows one of its clients to withdraw against clearing of a cheque. b) A bank which maintains high net worth customers accounts b) A bank which collects cheques for non customers c) A bank which handles high value clearing cheques (a) 4)State which of the following is/are incorrect: i) A Certificate of Deposit (CD) is issued by a banker ii) In a garnishee order the banker on whom the order is issued is judgement debtors debtor iii) A book debt advance is secured by a mortgage iv) CAMEL model is used by RBI inspectors a) i and ii b) ii c) ii and iv d) iii (d) 5) RTGS stands for : a)Real Time Settlement System b)Real Time Gross Settlement System c)Real Gross Settlement System d)Real Gross Time Settlement System

(b)

6) Your bank receives a cheque in inward clearing which has not been signed by the account holder. Which one of the following reasons you will select to return the cheque? a) Cheque is not signed by the payee b) Refer to the drawer c) Cheque is not signed by the drawee d) Cheque is not signed by the endorsee (b) 7) A purchaser of a demand draft for Rs.500,000.00, lost the DD To obtain a duplicate draft he needs to furnish a)A Power of Attorney b)A letter c)An Indemnity d)Amandate (c ) 8) Which of the following is a material alteration? a) An open cheque is crossed with two lines across the cheque b) The purchaser of a DD changes the word order to bearer c) In a bearer cheque the holder of the cheque changes the word bearer to order by striking bearer with a line d) A blank endorsement on a cheque is converted into a full endorsement (b)
9) At a Big shopping mall,Hari withdraws cash from ATM of

Central Bank of India. Central Bank of India is a: a) Paying Banker b) Collecting Banker c)Advising Banker d) Correspondent Banker

(a)

10) )An order cheque is endorsed as without recourse to me by the endorser. This endorsement is known as a)Blank endorsement b)Restrictive endorsement c)Endorsement in full (d) d)Sans recourse endorsement

11) Match the following: i)IRDA ii)Garnishee Order iii)ATMs iv)Book debt a) i-D,ii-C,iii-A,iv-B b) i-A,ii-B,iii-D iv-C c) i-B,ii-A,iii-D,iv-C d)i-D,ii-C,iii-B,iv-A 12) Match the following: i)Classification of Assets ii)Allonge iii)Funds Transfer iv)Crossed cheques a) i-A,ii-B,iii-C,iv-D b) i-D,ii-C,iii-A,iv-B c) i-A,ii-D,iii-B,iv-C d) i-B,ii-A,iii-C,iv-D

A) Insurance B) Judgement debtor C) Assignment D) E- Banking

(b) A) Narasimham B) Endorsement C) EFT D) Collecting banker

(a)

13) Which one of the following is secured by a mortgage? a) A cash credit against inventory b) An overdraft against book debts c) A term loan against land and building d) An educational loan (c ) 14) In case of a Non Resident Indian which of the following is permitted? a)A SB account in joint names in Candian dollars b)A Fixed deposit account in Australian dollars c)A NRNR account in Indian rupees d)An EEFC account in Indian rupees (b)

15)Once a Bearer is always a bearer is applicable in respect of a) A bill of exchange payable after 90 days b) A cheque c) A demand promissory note d) A certificate of deposit (b) 16) State which of the following statement/s is/are correct? i) KYC norms is applicable only to deposit accounts ii) Either or survivor is applicable to all joint accounts iii) A cash credit facility is a fund based limit iv) An incomplete negotiable instrument is called as an inchoate instrument a) i and ii b)ii and iii c)iii and iv d)iv (c) 17) A stop payment instruction of a cheque can be issued by: a) The payee b) The endorsee c) The drawer d) The drawee (c) 18) A customer has the flexibility to select the number of instalments and also vary his monthly instalment amounts subject to certain conditions. Identify the account a) An EEFC account b) A variable recurring deposit account c) A flexi deposit account d) A roaming current account (b)