Jaiib Question

Which one doesn't come under the classification of scheduled banks?
a. Public Sector Banks

b. Private Sector Banks
c. Foreign Banks
d. None of these
Macro Economics doesn't deal with...
a. GDP
b. Unemployment Rates
c. Individual Firms
d. Price Indices
LC which can be amended or cancelled by the opening bank is called......
a. Transferable LC
b. Irrevocable LC
c. Revocable LC
d. Revolving LC
As a cover for bank note issue, RBI keeps some minimum value of total approved assets in the form
of:
a.cash and bank balances
b.cash, gold coins and bank balances
c.gold coins, bullion and foreign securities
d.all the above
Who gave wealth theory of economics?
a. Alfred marshall
b. Lionel Robbions
c. Adam smith
d. None of these
RBI exercises monetary control in India through...
a. Issue of currency
b. Cash reserve and liquid reserve ratios
c. Repo and Reverse Repo Rate
d. Regulated Payment System
Which one doesn't come under the classification of scheduled banks?

c. Foreign Banks
d. None of these
Which of the following is not covered under selective credit control,at present:
a.sugar
b.buffer stocks of sugar
c.unreleased stocks of sugar with sugar mills representing free levy sugar
d.none of above
In India, consumer price index released by......
a. Ministry of commerce
b. Ministry of Finance
c. Ministry of labour and employment
d. Ministry of Agriculture
Which one of the following doesn't come under the functions of SEBI in India?
a. Supervision over listed companies
b. Management of Payment System
c. Control over Equity Market
d. Regulation of Debt Market
Who regulates the Insurance Business in India?
a. RBI
b. SEBI
c. IRDA
d. AMFI
The apex institution which handles refinance for agriculture and rural development is called:
a) RBI
b) SIDBI
c) NABARD
d) SEBI
Which one of the following doesn't come under the functions of RBI in India?
a. Regulating the Money Market

b. Supervision over NBFCs
c. Supervision over FIIs
d. Management of Payment System
Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes
a) 10
b) 18
c) 22
d) 26
Coins are issued by
a. RBI
b. Govt of India
c. both a and b
d. None of these
For controlling inflationary or deflationary situations in india, RBI makes use of(which one is
excluded):
a.Cash Reserve Ratio
b.Statutory Liquidity ratio
c.Open Market operations
d.Liquidity adjustment facility
Certification Test for marketing & selling of mutual fund products is conducted by
a. SEBI
b. NSE or BSE
c. AMFI
d. RBI
For controlling inflationary or deflationary situations in india, RBI makes use of(which one is
excluded):
a.Cash Reserve Ratio
b.Statutory Liquidity ratio
c.Open Market operations
d.Liquidity adjustment facility
Price Index used in India to calculate inflation for policy formulation is
a. Consumer price index

b. GDP deflator
c. Wholesale price index
d. Retail price index
Narrow Money consists of
a. Currency with the Public Demand Deposits, 'Other 'Deposits with the RBI
b. Currency with the Public, Time Deposits, `Other' Deposits
c. Time deposits, Demand Deposits, 'Other' Deposits with the RBI
d. Currency with the Public, Demand Deposits
Macro Economics doesn't deal with...
a. GDP
b. Unemployment Rates
c. Individual Firms
d. Price Indices
Which of the following is part of the money market?
a. Debentures
b. Bonds issued by PSUs
c. Term Money
d. Bonds issued by Govt
Which is not a major promotor of CIBIL?
a. HDFC
b. SBI
c. RBI
d. Trans Union International Inc.
Which of the following can't be included in the money market?
a. CDs
b. Treasury Bills
c. Corporate Securities
d. Call/Notice money
Which of the following is an important reason for regulation of banking system:
a.to promote confidence of public in banking system

b.to protect interest of the investors
c.to ensure that the financial markets are efficient and transparent
d.all the above
Which of the following can't be included in the definition of "Financial Intermediary"?
a. Financial Institutions
b. Banks
c. NBFC & Mutual Funds
d. None of these
The negotiable financial instrument which is traded on a stock exchange of another country but
represents security issued by foreign listed company is called:
a.buyers credit
b.depository receipt
c.cross listed stock
d.participatory note
Universal Banking means...
a. International Banking
b. Wholesale Banking
c. Offering multiple Financial Products
d. All of the above
National Clearing Cell of the RBI is located in ......
a) Mumbai
b) New Delhi
c) Calcutta
d) Chennai
Notice Money means money lent/borrowed between banks and entities like PDs for ......
a. 1 day
b. 2-14 days
c. More than 14 days
d. None of these
Participatory notes are issued by

a. NREs
b. NRIs
c. FIIs
d. PIOs
Supervision over stocks,brokers,mutual funds etc. is done by
A. Capital markets regulatory authority
B. Central banking authority
C. Insurance and pension regulators
BCSBI has been set up on the recommendations of ...... Committee.
a. Jankiraman
b. Narasimhan
c. Tarapore
d. Rangarajan
Call Money means money lent/borrowed between banks and entities like PDs for ......
a. 1 day
b. 2-14 days
d. None of these
Treasury bills are issued for a period of upto......
a. 30 days
b. 31 days
c. 90 Days
d. 91 days
Which of the following is value added service as part of wholesale banking:
a.structured finance
b.channel financing
c.supply chin management
d.letter of credit
Reforms in the financial services sector were initiated on the recommendations of ...... Committee.
a. Jankiraman
b. Narasimhan
c. Tarapore
d. Rangarajan
CPs are issued normally for a tenure of......
a. 30 Days
b. 60 Days
c. 90 Days
d. 120 Days
Under forfaiting, the exporter is able to transfer ...... risk.
a. Credit
b. Political
c. Interest Rate
d. All the above
The validity period of SEBI's observation letter for IPO offer document is......
a. 1 month
b. 2 months
c. 3 months
d. 6 months
Inter-Bank Term money means, borrowings among banks for ......
a. 1 day
b. 2-14 days
c. more than 14 days
d. None of these
Which of the following products in retail banking do not fall under retail deposit products:
a.no frill accounts
b.deposit accounts of senior citizens
c.depository services
d.all the above
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
cash flow statements deals with ......
a. cash funds
b. non-cash funds
c. both a and b
d. None of these
Banking Ombudsman Scheme is introduced under ......... of BR Act, 1949?
a. Section 34A
b. Section 35A
c. Section 43A
d. Section 53A
Which is not defined in NI Act?
a. Special Crossing
b. A/c Payee
c. General Crossing
d. None of the above
While opening an account in the name of a Joint Hindu Family a JHF letter is obtained. It will be
signed by?
a. Karta
b. Adult Coparceners
c. Minor Coparceners
d. Only by a and b
As per Indian Stamp Act, which one attracts stamp duty?
a. DPN
b. Agreements
c. both a and b
d. Neither a not b
Under PMRY scheme, which is not levied?
a. Penal Interest
b. Processing charges
c. both a and b
d. None of these
Who are eligible for subsidy under SHG?
a. All the members
b. only BPL members
c. only APL members

As per Indian Stamp Act, which one attracts stamp duty?
a. DPN
b. Agreements
c. both a and b
d. Neither a not b
Under PMRY scheme, which is not levied?
a. Penal Interest
b. Processing charges
c. both a and b
d. None of these
In Garnishee Order, the personal account of a partner ...... for the debts of the firm.
a. can be attached
b. can't be attached
c. can be attached if ordered so by the court
d. None of these
Customer keeps certain valuables with the bank for safe-keeping. Here the bank is a ......
a. Debtor
b. Creditor
c. Trustee
d. Lessee
Mandate is a ...... agreement
a. stamped
b. unstamped
c. memorandum
d. letter
National Clearing Cell of the RBI is located in ......
A. Mumbai
B. New Delhi
C. Calcutta
D. Chennai
Banknet doesn't link ......
A. Nagpur
B. Bangalore
C. Hyderabad
D. Ahmedabad
HNI stands for ......
a. Hindustan National Investment

b. High National Investment
c. High Networth Individual
Communication software which allows free format messaging and file transfer on Banknet
infrastructure is ......
A. NICNET
B. Banknet
C. RBI Net
D. Indonet
Smart Card is ......
a. Special purpose Cards
b. Processing unit contains memory for storing data
c. Processing unit for software handling
d. None of these
Banknet link ...... cities
A. 5
B. 6
C. 7
D. 8
When goods and services are sold,the monetary product is known as.
A-capital
B-income
C-asset
D-profit
E- revenue
Cheque book facilities are provided to deposit customers by
Commercial Banks
Mutual Funds
NBFCs
All of the above
Profit and loss account of a banking company is prepared on which of the following format...
A.schedule VI of companies act
B. Form A- schedule 3rd
C.form lll , prescribed by RBI
D. Form B-schedule 3rd
E.none of the above
Which of the following is not a category of priority sector lending....
1 Agriculture
2 SME
3 Retail trade and education loan
4 Micro credit and housing loan
Asset Reconstruction company has to get registration from
A. RBI
B. its own bank
C. both
D. none
ATMs are typically deployed by banks for
wholesale banking
merchant banking
retail banking
all the above
Which of the following can't be taken as Proof of Identity?
a. Voter ID
b. Driving Licence
c. Ration Card
d. Aadhaar Card
IRR (internal rate of return) wherever applicable should not be less than proposed.......of loan
a. interest rate
B. cost
C. cash generation
D. fixed rate
In securitisation, who is the obligor?
a. Borrower
b. Lending Bank
c. Securitisation Company
White levelled ATM can be setup by
a.RRBs
b.Co-operative banks
c.NBFC
d.any bank
INTEREST IN SB A/C IS CALCULATED ON
(A) MINIMUM BALANCE DURING THE MONTH
(B) BALANCE AS ON 30TH OF THE MONTH
(C) MINIMUM BALANCE BETWEEN 10TH & LAST DAY OF THE MONTH
(D) ON DAILY BALANCE BASIS
Q 2 . Microcredit concentrates on______
a) small loan
b) women
c) rural areas
d) all of these
A firm has been changing its depreciation policy after every 2-3 years,it is violating, which of the
following concept.
A.conservation concept
B.consistency concept
C.accounting period concept
D.historical cost concept.
If A bank is planning to shift or close his branch the bank have to give prior notice of ____ months?
Which of the following is not a category of priority sector lending....
1 Agriculture
2 SME
3 Retail trade and education loan
4 Micro credit and housing loan
21. Participatory notes are issued by _____.

a. NREs
b. NRIs
c. FIIs
d. PIOs
22. Which of the following can't be included in the

money market?
a. CDs
b. Treasury Bills
c. Corporate Securities
d. Call/Notice money
23. Which of the following is part of the money market?

a. Debentures
b. Bonds issued by PSUs
c. Term Money
d. Bonds issued by Govt
24. As per Basel II recommendations, there are _____

key principles for Supervisory Review.
a. 3
b. 4
c. 5
d. 6
25. Who regulates the Insurance Business in India?

a. RBI
b. SEBI
c. IRDA
d. AMFI
26. As a cover for bank note issue, RBI keeps some

minimum value of total approved assets in the form of
_____.
a. cash and bank balances
b. cash, gold coins and bank balances
c. gold coins, bullion and foreign securities
d. all the above
27. RBI exercises monetary control in India through

_____.
a. Issue of currency
b. Cash reserve and liquid reserve ratios
c. Repo and Reverse Repo Rate
d. Regulated Payment System
28. The apex institution which handles refinance for

agriculture and rural development is called _____.
a) RBI
b) SIDBI
c) NABARD
d) SEBI
29. LC which can be amended or cancelled by the

opening bank is called_____.
a. Transferable LC
b. Irrevocable LC
c. Revocable LC
d. Revolving LC
30. For controlling inflationary or deflationary situations

in India, RBI makes use of (which one is excluded)
_____.
a. Cash Reserve Ratio
b. Statutory Liquidity ratio
c. Open Market operations
d. Liquidity adjustment facility
31. Which one of the following doesn't come under the

functions of RBI in India?
a. Regulating the Money Market
b. Supervision over NBFCs
c. Supervision over FIIs
d. Management of Payment System
32. Sec _____ of RBI Act,1934 gives sole power to RBI

to issue currency notes.
a) 10
b) 18
c) 22
d) 26
33. Certification Test for marketing & selling of mutual

fund products is conducted by _____.
a. SEBI
b. NSE or BSE
c. AMFI
d. RBI
34. Which of the following is not covered under selective

credit control, at present?
a. sugar
b. buffer stocks of sugar

c. unreleased stocks of sugar with sugar mills representing
free levy sugar
d. none of above
35. Which one of the following doesn't come under the

functions of SEBI in India?
a. Supervision over listed companies
b. Management of Payment System
c. Control over Equity Market
d. Regulation of Debt Market
36. Which one doesn't come under the classification of

scheduled banks?
c. Foreign Banks
d. None of these
37. Against which type of following security, the banks

can sanction loans _____.
a. commercial paper
b. certificate of deposit
c. FDR issued by other bank
d. none of above
38. Supervision over Capital Market and Stock

Exchanges is the role of _____.
a. RBI
b. SEBI
c. IRDA
d. AMFI
39. Which one is not a non-fund based service?

a. Collection of bills and documents
b. Letter of Credit
c. Bill discounting
d. Bank guarantee
40. Participatory notes are not allowed to be issued to

_____.
a. Foreigners
b. Non-Residents
c. PIOs
d. None of these
1. Call Money means money lent/borrowed between

banks and entities like PDs for _____.
a. 1 day
b. 2-14 days

d. None of these
2. BCSBI has been set up on the recommendations of

_____ Committee.
a. Jankiraman
b. Narasimhan
c. Tarapore
d. Rangarajan
3. Which of the following products in retail banking do

not fall under retail deposit products?
a. no frill accounts
b. deposit accounts of senior citizens
c. depository services
d. all the above
4. Inter-Bank Term money means, borrowings among

banks for _____.
a. 1 day
b. 2-14 days
c. more than 14 days
d. None of these
5. Under forfaeiting, the exporter is able to transfer

_____ risk.
a. Credit
b. Political
c. Interest Rate
d. All the above
6. CPs are issued normally for a tenure of_____.

a. 30 Days
b. 60 Days
c. 90 Days
d. 120 Days
7. The validity period of SEBI's observation letter for

IPO offer document is_____.
a. 1 month
b. 2 months
c. 3 months
d. 6 months
8. Reforms in the financial services sector were initiated

on the recommendations of _____ Committee.
a. Jankiraman
b. Narasimhan
c. Tarapore
d. Rangarajan
9. Which of the following is value added service as part

of wholesale banking?
a. structured finance
b. channel financing
c. supply chain management
d. letter of credit
10. Treasury bills are issued for a period of up to_____.

a. 31 days
b. 91 days
c. 182 Days
d. 364 days
11. Notice Money means money lent/borrowed between

banks and entities like PDs for _____.
a. 1 day
b. 2-14 days

d. None of these
12. Coins are issued by ____.

a. RBI
b. Govt of India
c. both a and b
d. None of these
13. The negotiable financial instrument which is traded

on a stock exchange of another country but represents
security issued by foreign listed company is called
_____.
a. buyers credit
b. depository receipt
c. cross listed stock
d. participatory note
14. Universal Banking means _____.

a. International Banking
b. Wholesale Banking
c. Offering multiple Financial Products
d. All of the above
15. Which is not a major promoter of CIBIL?

a. HDFC
b. SBI
c. RBI
d. Trans Union International Inc.
16. Normally what type of movement is seen in interest

rate with change in bank rate by RBI?
a. if bank rate is reduced, interest rate of Banks increase
b. if bank rate is increased, interest rate of Banks decrease
c. if bank rate is reduced, interest rate of Banks decrease

d. if bank rate is reduced or increased, there is no change
in the interest rate of Banks
17. Which one is not a fund based service?

a. Short term finance
b. Letter of Credit
c. Bill discounting
d. Export credit
18. Which of the following can't be included in the

definition of "Financial Intermediary"?
a. Financial Institutions
b. Banks
c. NBFC & Mutual Funds
d. None of these
19. In strategic Alliance, the alliance partners ______.

a. Merge with each other
b. One partner acquires the other
c. Remain separate entities
d. None of these
20. Which of the following is an important reason for

regulation of banking system?
a. to promote confidence of public in banking system
b. to protect interest of the investors
c. to ensure that the financial markets are efficient and
transparent
d. all the above
114. The risk arising owing to non-enforceability of contract against a counter party is the ____ risk.
a) Legal
b) Systematic
c) Credit
d) Liquidity
Ans: a
113. A Bank received an LC for USD 2 Mio issued by MT 700 and opened on Jan 25, 2011. The
credit calls for shipment of 200 tonnes of good
quality wheat cultivated in Punjab. What is the time available for issuing bank for examination of
documents under UCP600?
a. 21 days
b. Reasonable time not exceeding 7 days
c. Reasonable time not exceeding 7 banking days
d. Five banking days
Ans: d
111. Which of the following curency is not quoted as indirect quote (rate)?
a) NZD
b) USD
c) GBP
d) Euro
Ans: b
Ref: Page 10
Normally all curencies are quoted as indirect quotes except for the following GBP, Euro, AUd, and
NZD. USD is quoted as direct quote.
110. Select the incorrect sentence / sentences from the following:
1. In direct quotes, local currency is variable.
2. In direct quotes, local currency is fixed.
3. In indirect quotes, local currency is variable.
4. In indirect quotes, local currency is fixed.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) 2 and 4
Ans: c
Ref: Page 10
109. All rates quoted in foreign exchange are generally ____ rates.
a) Spot
b) Tom
c) Forward
d) Value
Ans: a
Ref: Page 9
108. All foreign currency inward remittances upto ......, as per FEDAI guidelines, be converted
immediately into Indian Rupees?
a. Rs. 50000 equivalent

b. USD 10000
c. USD 5000
d. 1000
Ans: c
107. The value of the currency is decided by supply and demand factors for a particular currency in
____ rates mechanism.
a) Fixed
b) Floating
c) Both a and b
d) None of these
Ans: b
Ref: Page11
106. An import bill not retired by the importer should be crystallized by the bank on what day?
a. On 21st day from the date of Bill of Lading
b. On the 10th day from the receipt of documents at the counters of the bank
c. On the expiry of five banking days
d. On the day of receipt of the Bill
Ans: b
105. How forward rates are calculated?
a. By adding a mark up to spot rates
b. By adding premium or discount to spot rates
c. By deducting premium or discount from spot rates
d. By adding premium to and deducting discount from spot rates
Ans: d
104. Failure of the counter party during the course of the settlement (due to time zone differences
between the two currencies to be exchnaged) is the ____ risk.
a) Operational
b) Market
c) Settlement
d) Legal
Ans: c
103. The crystallisation period cannot exceed ____.
a) 15 days
b) 30 days
c) 45 days
d) 60 days
Ans: d
102. Entities which are authorised only to buy foreign currency notes and traveller's cheques are
known as _____.
a) Authorised Person - Category I
b) Authorised Person - Category II
c) Authorised Person - Category III
d) Authorised Person - Category IV
Ans: c
101. FEDAI requires banks to undertake profit / loss evaluation of forex positions at the end of each
______.
a) week
b) month
c) quarter
d) year
Ans: b
99. The central bank absorbs excess liquidity from the banks using ___. Select the best option.
a) CRR
b) SLR
c) Repo Rate
d) Reverse Repo Rate
Ans: d
96. The amount that all banks have to maintain in cash or in the form of gold or approved securities
is known as ___ and it is a certain percentage of their ___ demand and time liabilities.
a) CRR, net
b) CRR, total
c) SLR, net
d) SLR, total
Ans: d
93. Which policy refers to government borrowings, spending and taxation?
a) monetary policy
b) fiscal policy
c) both a and b
d) None of these
Ans: b
92. Which policy is used by the government, central bank or monetary authority to control the supply,
availability and cost of money or ROI to obtain growth and stability of the economy?
a) monetary policy
b) fiscal policy
c) both a and b
d) None of these
Ans: a
91. ___ is a standard measure of income / expenditure inequality.
a) HDI
b) Gini coefficient
c) GDP
d) GNP
Ans: b
89. Under which of the following, 100% FDI is not permitted?
a) retail trading and lottery business
b) gambling and betting
c) atomic energy
d) print media and insurance
Ans: d
88. 100% FDI is permitted under a very limited number of sectors. Which of the following is one of
them?
a) retail trading and lottery business
b) investment companies
c) petroleum and air transport
d) defence, insurance and asset reconstruction
Ans: a
87. After the introduction of financial sector reforms in capital market, depository system was
replaced with ___.
a) 14-day settlement cycle
b) Badla system
c) open outcry system
d) dematting of securities
Ans: d
86. After the introduction of financial sector reforms in capital market, rolling settlement replaced ___.
a) 14-day settlement cycle
b) Badla system
c) open outcry system
d) depository system
Ans: a
85. Which of the following is the benchmark for pricing of securities in other markets?
a) Money Market
b) G - Secs Market
c) Foreign Exchange Market
d) Capital Market
Ans: b
84. Credit guarantee for collateral free loans to MSE units is provided by Credit Guarantee Trust
Fund administered by ___.
a) RBI
b) IDBI
c) SIDBI
d) CCI (Controller of Capital Issues)
Ans: c
83. Which sector is also called tertiary sector in India?
a) Agricultural
b) Industry
c) Services
d) External
82. Collateral is waived for loans up to Rs ___ to MSE units.
a) 1 lakh
b) 2 lakh
c) 3 lakh
d) 5 lakh
Ans: d
76. Pick the correct statement.
a) The quantity of money demanded increases with the fall in the rate of interest.
b) The quantity of money demanded increases with the decrease in the level of nominal income.
c) Increase in money supply leads to the rise in the rate of interest.
d) Demand of money is directly related to the rate of interest.
Ans: A
75. Pick the incorrect statement.
a) Bond prices and rate of interest are inversely related.
b) If bond prices go down, rate of interest increases.
c) If bond prices go up, rate of interest rises.
d) If bond prices go up, rate of interest declines.
Ans: C
73. CPI is the cost of living index popularly known as ___.
a) Cost push inflation

b) Demand pull inflation
c) Core inflation
d) Headline inflation
Ans: C
72 Hindu rate of growth is __.
a) 3%
b) 3.5%
c) 5%
d) 7%
Ans: B
71. An increase in government expenditure or transfer payments will shift the IS curve ___.
a) To right
b) To left
c) No change
d) Downwards
Ans: A
69. If in market, money supply increases and interest rate is down, the LM curve will be __.
a) Shift up and to left
b) Shift down and to right
c) Shift up and to right
d) Shift down and to left
Ans: B
68. Theory of interest is based on ____. Select the incorrect option.
a) Investment demand function
b) The interest rate functions
c) The liquidity preference function
d) The quantity of money
Ans: b
66. The finance minister is required to keep parliament informed through ____ reviews on the
implementation and to take corrective measures if the reviews show deviations.
a) half yearly review
b) annual reviews
c) monthly review
d) quarterly review
Ans: D
64. Changes in the level and composition of taxation and government spending can have impact on
the following variables in the economy. Pick up the odd one.
a) Aggregate demand and the level of economic activity
b) The pattern of resource allocation
c) The proper utilization of funds
d) The distribution of income
Ans: C
62. What government of India does in open market operations to suck money from the market?
a) absorbs bonds
b) sells bonds
c) increases CRR
d) increases interest Rate
Ans: B
61. The Equilibrium Price is also known as _____.
a) Market price
b) Optimum price
c) Real price
d) Market-clearing price
Ans: D
58. ____ is the rate of interest which a central bank charges on the loans and advance that it extends
to commercial banks and other financial intermediaries.
a) Base rate
b) Bank rate
c) CRR
d) Repo rate
Ans: B
57. The present banking system is called a _____.
a) on line banking system
b) fractional reserve banking system
c) accrual system of accounting
d) book keeping accounting system
Ans: B
56. A downward Sloping Demand Curve relates quantity demanded to ____.
a) Supply
b) Income
c) Price
d) Demand
Ans: C
54. Government of India introduced ____ policy for raising interest rate to combat inflation.
a) Expansionary policy
b) Monetary policy
c) Fiscal policy
d) Contractionary policy
Ans: D
53. Forces behind the demand curve ___.
a) Expectation about future economic conditions
b) Average Income
c) Cost of production
d) Both a and b
Ans d
52. Demographic advantage is popularly called as demographic ____.
a) Preference
b) Dividend
c) Premium
d) Coupon
Ans: B
48. Demand Schedule is the ____.
a) Relationship between demand and quantity bought
b) Relationship between price and quantity bought
c) Relationship between price and demand
d) None of these
Ans: B
47. Which of the following is Capitalistic Economy?
a) England
b) China
c) India
d) None of the above
Ans: A
46. 86th constitutional amendment has made free and compulsory education to all children _____.
a) up to age 14 girls child
b) up to 10th class to girl
c) 6 to 14 yr to all children
d) 6 to 14 yr to all female children
Ans: C
44. IS curve and LM curve relates which of the two variables?

a) Demand and supply
b) Money and market
c) Money and interest rate
d) Income and rate of interest
Ans: D
43. In capital market the erstwhile badla system is replaced by ____.
a) open market system
b) outcry system
c) option and futures
d) Logging system
Ans: C
42. Which one is the force behind the Supply Curve?
a) Cost of production
b) Technological advances
c) Government policies
d) All of the above
Ans: D
41. Pick odd man out.
a) Rent
b) Interest
c) Wages
d) Money
Ans: D
39. An increase in government expenditure or transfer payments will shift the IS curve ____.
a) To right
b) To left
c) No change
d) Downwards
Ans: A
37. The economy, in which the government makes all important decisions about production and
distribution, is called a ____ economy.
a) Laissez-faire economy
b) Socialistic economy
c) Command economy
d) Either of b or c
Ans: D
38. Which of the following statements is true about Inflation?
a) A rise in the general level of prices
b) Leads to fall in purchasing power

c) Both a and b
Ans: C
36. The economy, in which the government does not interfere at all in economic decisions, is called a
____ economy.
a) Market economy
b) Capitalistic economy
c) Laissez-faire economy
d) Command economy
Ans: C
35. The economy in which individuals and private firms make the major decisions about production
and consumption is called a ____.
a) Market economy
b) Capitalistic economy
c) Socialistic economy
d) Either of a and b
Ans: D
29. Supply curves relate quantity supplied to ___.
a) Supply
b) Demand
c) Price
d) Demand
Ans: C
28. Forces behind the supply curve
a) Cost of production
b) Technological advances
c) Government policies
d) All of the above
Ans: D
26. Which phase of business cycle is referred to as crisis?
a) Recession
b) Depression
c) Recovery
d) Boom
Ans: A
21. Narrow money is indicated by ___.
a) M1
b) M2
c) M3
d) M4
Ans: A
20. Which one is not an economic activity?
a) Investment
b) Production
c) Consumption
d) None of these
Ans: D
18. Factors of production are categorized into ___ categories.
a) 2
b) 3
c) 4
d) 5
Ans: C
17. Who is considered as father of Modern Economics?
a) Alfred Marshall
b) Lionel Robbions
c) Adam Smith
d) None of these
Ans: C
16. In ____ phase of business cycle, underemployment will be widespread.
a) Recession
b) Depression
c) Recovery
d) Boom
Ans: B
14. Economic Sector reforms were started in India in
a) 1983
b) 1985
c) 1991
d) 1981
Ans: C
08. Money is anything which performs the following. Pick up the odd one.
a) A measure of value
b) Medium of exchange
c) A store of value over time
d) Measure of prosperity
Ans: D
07. Macro Economics doesn't deal with ___.
a) GDP
b) Unemployment Rates
c) Individual Firms
d) Price Indices
Ans: C
05. Which price index is used in India to calculate inflation for policy formulation?
a) Consumer price index...
b) GDP deflator
c) Wholesale price index
d) Retail price index
Ans: C
04. In demand curve, quantity and prices are.......related.
a. Directly...
b. Inversely
c. Indirectly
d. Market
Ans: B
1. CPI measures prices at......
a. Wholesale Level
b. Consumer Level
c. Retail Level
d. None of these
Right Ans - C
2:50
Daily Quiz - JAIIB-ACCOUNTING &

FINANCE FOR BANKERS
Select the correct answer and click Get Results button provided below. The answers will be
displayed in the text box provided there.
All The Best !!!.
1. Which of the following may not be part of the reconciliation process.
a) Interest on overdraft.
b) Dishonour of cheque.
c) Cash drawn from bank.
d) Cheque deposited but not collected.
2. Which of the following is part of reconciliation

a) Cash paid by customer to the trader.
b) Cheque issued, presented, and on the debit side in the passbook. and cashbook.
c) Bank charges debited.
d) b) & c)
3. Reconciliation of overcasting on receipts side of cash book

a) Increases the balance in the cash book.
b) Increases the balance in the passbook.
c) Decreases the balance in the cash book.
d) Decreases the balance in the passbook.
4. Which of the following is true
a) Bank Reconciliation Statement(BRC) is an account.
b) BRC is prepared by the bank.
c) BRC shows causes of disagreement between cash book & passbook.
d) BRC shows only excess of cash book over passbook.
5. If x is a credit balance in cash book carried forward on the debit side, then
reconciliation is
a) Casting x on the debit side of cash book.
b) Casting 2x on the credit side of cash book.
c) Casting 2x on debit side of cash book.
d) Casting x on credit side of cash book.
6. If a trader enjoys an overdraft facility,then

a) His passbook will show debit balance.
b) His cash book will show credit balance .
c) Both a) & b).
d) Neither a) nor b).
7. Credit balance in a passbook indicates

a) Excess of deposits over withdrawals.
b) Excess of withdrawals over deposits.
c) Debit balance in cash book.
d) a) & c).
8. At any point in time, cash book & passbook balances will not be same.
a) True.
b) False.
c) May be.
d) None of above
9. A trader has a strict overdraft limit of 10,000/-, overdraft balance of 9,500/-; issues 2
cheques of 500/- each, which are presented, then
a) His cash book will show higher overdraft balance than passbook.
b) His cash book will show lesser overdraft balance than passbook.
c) His cash book will show same balance as passbook.
d) Neither a) nor b) nor c).
10. Direct deposit by a customer in the bank with no overdraft facility

a) Shows a higher passbook balance than cash book
b) Shows a lesser passbook balance than cash book.
c) Shows no difference.
d) None of the above.
11. Credit sale of X to Suresh is posted to his credit , then rectification is

a) Credit Suresh to the extent of 2X.
b) Credit Suresh to the extent of X.
c) Debit Suresh to the extent of 2X.
d) Debit Suresh to the extent of X.
12. Freight expenses for carrying Machinery is carried to Travel a/c, then rectification
in trial balance is
a) Debit machinery a/c and credit travel a/c.
b) Credit machinery a/c and debit travel a/c.
c) Credit profit and loss account and debit travel a/c.
d) Debit profit and loss a/c( P&L a/c) and credit travel a/c.
13. Goods worth X sold to Vijay was entered in purchase account; The rectification is
a) Credit purchases and credit sales to the extent of X each & debit Vijay.
b) Debit purchases and debit sales to the extent of X each & credit Vijay.
c) Debit sales to the extent of 2X.
d) Credit purchases to the extent of 2X.
14. Machinery worth (WDV) 1000/- sold for 1200/- is entered in sales register. The
rectification is
a) Credit sales 1200/-, debit machinery 1000/- and debit P&L a/c 200/-.
b) Debit sales 1200/- , credit machinery 1000/- and credit P&L a/c 200/-.
c) Credit machinery 1200/-, debit sales 1000/- and debit P&L a/c 200/-.
d) Debit machinery 1200/-, credit sales 1000/- and credit P&L a/c 200/-.
15. Sales return of amount X from Vijay was wrongly entered in purchase book. The
rectification is
a) Debit sales to the extent of 2X.
b) Credit purchases to the extent of 2X.
c) Credit Vijay 2X debit sales and purchases to the extent X each.
d) Debit sales return and credit purchases.
16. Which of the following will not affect Trial Balance

a) Goods sold on credit not recorded in books.
b) Overstating of sales register.
c) Rent account credited instead of debit.
d) Salary debited to the extent the amount.
17. Suspense a/c is not used in which of the following cases.
a) before trial balance.
b) after trial balance.
c) before final accounts.
d) none of the above.

a) Trial balance ensures arithmetical accuracy.
b) Trial balance errors are not located then the difference is sent to suspense a/c.
c) Trial balance is base for final accounts.
d) All of the above.
19. Statement showing debit and credit balances of ledger accounts is

a) Gross trial balance.
b) Net trial balance.
c) Trial balance.
d) d) None of the above.
20. Which of the following are true

a) Nominal accounts always have credit balances.
b) Real accounts always have debit balances.
c) Debit balance in ledger account is credit balance in trial balance.
d) P&L a/c appears in trial balance.
Clear answ ers
Score =
Correct Answers:
1. c 2. D 3. C 4. C 5. B 6. C 7. D 8. C 9. A 10. A 11. C 12. A 13. A 14. B 15. D 16.

A 17. A 18. D 19. C 20. B
Time Start Now : 8:52

FINANCE FOR BANKERS
All The Best !!!.
1. Freight expenses for moving machinery to factory is
a) Revenue expenses.
b) Deferred revenue expenditure.
c) Capital expenditure.
2. Which of the following is false?

a) Replacement of defective part of machinery is revenue expenditure.
b) Daily wages paid for erection /installing of machinery is capital expenditure.
c) Underwriting commission for issue of shares is revenue expenditure.
d) Excess of sale price of Machinery over its W D Value but less than cost price is
treated as revenue receipt.
3. Which of the following is not a deferred revenue expenditure

a) Preliminary expenses for setting up a company.
b) Rights issue amount.
c) Huge sales promotion expenditure in launch of new product.
d) Cost of preparing project report

5. For an expense to be classified as revenue or capital depends on

a) Kind of expense.
b) Duration of the benefit of the expenditure.
c) Effect on revenue earning capacity.
6. Inflation of current profits could be on account of

a) Inflation of closing stock in current year.
b) Deflation of closing stock in current year.
c) Inflation of closing stock in previous year.
7. Cost of goods sold is

a) Opening stock (+) purchases (+) closing stock.
b) Opening stock (+) purchases (-) closing stock.
c) Opening stock (-) purchases (+) closing stock.
d) None of above.
8. In LIFO method of inventory valuation
a) Issue of stocks to production is at latest price.
b) Closing stock is at latest price.
c) Both a) & b).
9. In FIFO method of inventory valuation

a) Closing stock is at latest price.
b) Issue of stocks to production is at earliest price.
c) Both a) & b).
10. Which of the following is most desirable

a) Pricing issue of goods to match current material costs.
b) Overstating profits.
c) Understating profits.
11. In a market of falling prices which is the best option

a) LIFO.
b) FIFO.
c) Weighted average cost method (WACM).
d) b) or c)
12. In a rising market which is the best option

a) LIFO.
b) FIFO.
c) WACM.
d) b) or c)
13. As per accounting standards which of the following is not a preferred method
a) LIFO.
b) FIFO.
c) WACM.
d) All of them.
rectification is
15. Cost of goods sold reflects the usual physical flow of goods. This statement is true of
a) LIFO.
b) FIFO.
c) WACM.
d) Adjusted selling price method.
16. Under written down value method of depreciation., the W D V of the asset is always
a) equal to zero
b) < zero
c) > zero
17. Depreciation is an estimate because

a) rates of depreciation are not fixed
b) residual value of the asset is not known.
c) useful life of the asset is difficult to ascertain
d) b) & c) .
18. In sinking fund method of depreciation accounting

a) A fund is created at the beginning to which depreciation is charged annually
b) Since acquiring an asset results in sunk costs depreciation of the asset is called so
c) Depreciation charged annually is transferred to a fund which is invested in growth
and income generating securities to take care of the replacement of the asset
19. What is G A A P
a) General American Accounting Practices
b) Greatly Accepted Accounting Practices
c) Generally Accepted Accounting Principles.
d) Good American Accounting Practices
20. In operating lease the period is

a) Less than the useful life of the asset.
b) Greater than the useful life of the asset
c) Equal to the useful life of the asset
Clear answ ers
Score =
Correct Answers:
1. c 2. C 3. B 4. C 5. D 6. A 7. B 8. A 9. C 10. A 11. D 12. D 13. A 14. B 15. B 16.

C 17. D 18. C 19. C 20. A
33:08

FINANCE FOR BANKERS
All The Best !!!.
1. Liabilities have ________ balance and assets have ___________ balance.
a) Credit; debit
b) debit; credit
c) Credit; credit
d) nil; credit
2. Which one of the following statement is wrong?

a) Long term liabilities + Short term liabilities = Total outside liabilities
b) Net worth + Long term liabilities = Long term sources of funds
c) Current liabilities + Long term liabilities = Net worth
d) Networth + Long term liabilities + Current liabilities = Source of Funds
3. Surplus of long term sources over long term uses called

a) Quick assets
b) Net worth
c) Net working capital
d) Intangible assets
4. Which of the following does not match:

a) Pre-operative expenses (-) current liability
b) Outstanding expenses (-) current liability
c) Prepaid expenses (-) current assets
d) Preliminary expenses (-) intangible assets
5. Networking capital can be calculated as:

a) Long term sources (-) long term uses
b) Current assets (-) current liabilities
c) Current assets (-) current liabilities other than bank borrowings
d) Both (a) and (b)
6. The total liabilities of a firm are 50, its long term uses 20 and long term sources 30.
Which one of the following statement is correct?
a) Current assets = 50 and current liabilities = 20
b) Current assets = 30 and current liabilities = 20
c) Current assets = 20 and current liabilities = 30
d) Current assets = 30 and current liabilities = 30
7. The total assets of a firm are 80 and its long term sources are 50 and net worth 20.
a) Current liabilities 30, total outside liabilities 60
b) Current liabilities 10, total outside liabilities 70
c) Current liabilities 20, total outside liabilities 60
d) Current liabilities cannot be worked as information is incomplete
8. A Car is a ________________(find the more suitable option from the following)

a) Current asset for a transport operator.
b) Fixed asset for a transport operator.
c) Current assets for a auto-mobile dealer /manufacturer and fixed assets for a
transport operator
d) Current assets for a auto-mobile dealer / manufacturer and transport operator
9. Letter of credit and Guarantees issued by banks on behalf of the organization is

tread as _________
a) Current liability
b) Current asset
c) Long term liability
d) Contingent liability
10. If a company issues bonus shares, the net worth of the company:
a) Will increase
b) Will not change
c) Will decline
d) It will change, may increase or decrease
11. A join stock companys total assets are Rs. 45 crore which include intangible assets
worth Rs. 2 cr. Its liabilities other than share capital and reserves are Rs. 40 cr.
What is the amount of tangible net worth?
a) 3 cr
b) 7 cr
c) 5 cr
d) 2 cr
12. A firm is having paid up capital of Rs. 2 lac, reserves of Rs. 1 lac, current liabilities
of Rs. 1 lac, prepaid expenses of Rs. 0.20 lac and preoperative expenses of Rs. 0.30
lac. What will be its tangible net worth:
a) Rs. 2.50 lac
b) Rs. 2.70 lac
c) Rs. 3 lac
d) Rs. 3.50 lac
13. A balance sheet shows total liabilities at Rs. 10 lac, current liabilities at Rs. 5 lac and
long term debt Rs. 2 lac and debit balance of profit and loss account at Rs. 1 lac.
The tangible net worth is
a) Rs. 2 lac
b) Rs. 4 lac
c) Rs. 3 lac
d) Rs. 5 lac
14. The term QUASI EQUITY refers to

a) Unsecured loans from friends and relatives which are pegged to our advance
b) Unpaid share capital
c) Capital reserve
d) All the above
15. In a milk society, the livelihood cows are classified as

a) A fixed assets
b) A current assets
c) Both the above
d) None of these
16. When the reserves of a company are capitalized, the result is :
a) a public issue
b) a private placement
c) rights issue of shares
d) bonus issue of shares
17. Calculate the tangible net worth from the following balance Sheet Capital Rs. 50,
000 , Fixed asset Rs. 60, 000 Term Loan Rs. 10, 000, Current Asset Rs. 30, 000,
Current Liabilities Rs.40,000 , Goodwill Rs. 10, 000
a) Rs.50, 000/-
b) Rs.10, 000/-
c) Rs.40, 000/-
d) Date insufficient
18. A company has net worth Rs. 5 lac, Term Liability Rs. 10 lacs. Fixed assets Rs. 16
lacs and Current assets Rs. 25 lacs. There is no intangible Assets or other Non
current assets. Calculate its Net Working Capital
a) Rs. 10 lac
b) Rs. 1 lac
c) Rs. 9 lac
d) Rs. (-) 1 lac
19. Current ratio is 2:5 Current Liability is Rs. 30, 000. The Net working capital is
a) Rs. 12, 000
b) Rs. 18, 000
c) Rs. (-) 45, 000
d) Rs. (-) 18, 000
20. In last year the Current Ratio was 3:1 and Quick Ratio was 2:1. Presently Current
ratio is 3:1 but quick Ratio is 1:1. This indicates comparably
a) high liquidity
b) higher stock
c) lower stock
d) high turnover
Clear answ ers
Score =
Correct Answers:
1. a 2. C 3. C 4. A 5. D 6. B 7. A 8. C 9. D 10. B 11. A 12. B 13. A 14. A 15. A 16.

D 17. C 18. D 19. D 20. B
JAIIB Quiz - Legal & Regulatory Aspects of

Banking
All The Best !!!.
1. The charge by way of lien over goods belonging to a company must be registered
with Registrar of Companies within a period of ______.

a) 30 days of creation of law
b) This charge need not be registered as this is not hypothecation, mortgage etc
c) 30 days of default in repayment
c) A or C whichever is earlier
2. DRT has jurisdiction relating to cases pertaining to Banks, Financial Institutions

with debt amount of.
a) Rs. 1 lakh and above
b) Rs. 5 lakh and above
c) Rs. 10 lakh and above
d) Rs. 15 lakh and above
3. The formation of a company is governed by the rules and regulations as contained

in ?
a) Indian Companies Act
b) RBI act
c) BR Act
4. For determining the advance amount the shares will be valued on the basis of.
a) Current market price
b) Average market price for the last 12 months
c) Face Value
d) A or B whichever is lower.
5. An Annuity is an ordinary Annuity if,

a) Payments are required to be made at the beginning of each period.
b) Payments are required to be made at the middle of each period
c) Payments are required to be made at ordinary instalments
d) Payments are required to be made at the end of each period.
6. Banking Ombudsman is appointed by
a) Central Government / Ministry of Finance
b) State Government
c) IDBI
d) RBI
7. A Customer Service Meet should be organized at every Branch .

a) Once in a Fortnight
b) Once in a Quarter
c) Once in a Month
d) Once in a Half Yearly
8. Who cannot file a complaint under Consumer Protection Act?

a) Banks
b) State Government
c) Public Interest Litigation Group
d) Persons receiving services free of charge
9. In how many days the opposite party can give the version of the case?
a) 5 days
b) 10 days
c) 30 days
d) no limit
10. The banking ombudsman receives maximum number of complaints in respect of;
a) foreign bank
b) public sector bank
c) regional rural bank
d) co- operative bank
Clear answ ers
Score =
Correct Answers:
1. b 2. C 3. A 4. D 5. D 6. D 7. D 8. D 9. C 10. B
An asset cost Rs. 3,30,000/- has residual value of Rs. 30,000/-, and is expected to last 4 years.
Calculate the depreciation for 4th year using sum of the digits Method.
a. Rs. 1,20,000/b. Rs. 60,000/c. Rs. 30,000/d. Rs. 15,000/-
2:52

FINANCE FOR BANKERS
All The Best !!!.
1. Which of the following may not be part of the reconciliation process.
a) Interest on overdraft.
b) Dishonour of cheque.
c) Cash drawn from bank.
d) Cheque deposited but not collected.
2. Which of the following is part of reconciliation

a) Cash paid by customer to the trader.
b) Cheque issued, presented, and on the debit side in the passbook. and cashbook.
c) Bank charges debited.
d) b) & c)
3. Reconciliation of overcasting on receipts side of cash book

a) Increases the balance in the cash book.
b) Increases the balance in the passbook.
c) Decreases the balance in the cash book.
d) Decreases the balance in the passbook.

5. If x is a credit balance in cash book carried forward on the debit side, then
reconciliation is
a) Casting x on the debit side of cash book.
b) Casting 2x on the credit side of cash book.
c) Casting 2x on debit side of cash book.
d) Casting x on credit side of cash book.
6. If a trader enjoys an overdraft facility,then

a) His passbook will show debit balance.
b) His cash book will show credit balance .
c) Both a) & b).
7. Credit balance in a passbook indicates

a) Excess of deposits over withdrawals.
b) Excess of withdrawals over deposits.
c) Debit balance in cash book.
d) a) & c).
8. At any point in time, cash book & passbook balances will not be same.
a) True.
b) False.
c) May be.
d) None of above
9. A trader has a strict overdraft limit of 10,000/-, overdraft balance of 9,500/-; issues 2
cheques of 500/- each, which are presented, then
a) His cash book will show higher overdraft balance than passbook.
b) His cash book will show lesser overdraft balance than passbook.
c) His cash book will show same balance as passbook.
d) Neither a) nor b) nor c).
10. Direct deposit by a customer in the bank with no overdraft facility

a) Shows a higher passbook balance than cash book
b) Shows a lesser passbook balance than cash book.
c) Shows no difference.
11. Credit sale of X to Suresh is posted to his credit , then rectification is

a) Credit Suresh to the extent of 2X.
b) Credit Suresh to the extent of X.
c) Debit Suresh to the extent of 2X.
d) Debit Suresh to the extent of X.
12. Freight expenses for carrying Machinery is carried to Travel a/c, then rectification
in trial balance is
a) Debit machinery a/c and credit travel a/c.
b) Credit machinery a/c and debit travel a/c.
c) Credit profit and loss account and debit travel a/c.
d) Debit profit and loss a/c( P&L a/c) and credit travel a/c.
13. Goods worth X sold to Vijay was entered in purchase account; The rectification is
a) Credit purchases and credit sales to the extent of X each & debit Vijay.
b) Debit purchases and debit sales to the extent of X each & credit Vijay.
c) Debit sales to the extent of 2X.
d) Credit purchases to the extent of 2X.
rectification is
15. Sales return of amount X from Vijay was wrongly entered in purchase book. The
rectification is
a) Debit sales to the extent of 2X.
b) Credit purchases to the extent of 2X.
c) Credit Vijay 2X debit sales and purchases to the extent X each.
d) Debit sales return and credit purchases.
16. Which of the following will not affect Trial Balance

a) Goods sold on credit not recorded in books.
b) Overstating of sales register.
c) Rent account credited instead of debit.
d) Salary debited to the extent the amount.
17. Suspense a/c is not used in which of the following cases.

a) before trial balance.
b) after trial balance.
c) before final accounts.

a) Trial balance ensures arithmetical accuracy.
b) Trial balance errors are not located then the difference is sent to suspense a/c.
c) Trial balance is base for final accounts.
19. Statement showing debit and credit balances of ledger accounts is

a) Gross trial balance.
b) Net trial balance.
c) Trial balance.
d) d) None of the above.
20. Which of the following are true

a) Nominal accounts always have credit balances.
b) Real accounts always have debit balances.
c) Debit balance in ledger account is credit balance in trial balance.
d) P&L a/c appears in trial balance.
Clear answ ers
Score =
Correct Answers:
1. c 2. D 3. C 4. C 5. B 6. C 7. D 8. C 9. A 10. A 11. C 12. A 13. A 14. B 15. D 16.

A 17. A 18. D 19. C 20. B

FINANCE FOR BANKERS
All The Best !!!.
1. Freight expenses for moving machinery to factory is
a) Revenue expenses.
b) Deferred revenue expenditure.
c) Capital expenditure.
2. Which of the following is false?

a) Replacement of defective part of machinery is revenue expenditure.
b) Daily wages paid for erection /installing of machinery is capital expenditure.
c) Underwriting commission for issue of shares is revenue expenditure.
d) Excess of sale price of Machinery over its W D Value but less than cost price is
treated as revenue receipt.
3. Which of the following is not a deferred revenue expenditure

a) Preliminary expenses for setting up a company.
b) Rights issue amount.
c) Huge sales promotion expenditure in launch of new product.
d) Cost of preparing project report

5. For an expense to be classified as revenue or capital depends on

a) Kind of expense.
b) Duration of the benefit of the expenditure.
c) Effect on revenue earning capacity.
6. Inflation of current profits could be on account of

a) Inflation of closing stock in current year.
b) Deflation of closing stock in current year.
c) Inflation of closing stock in previous year.
7. Cost of goods sold is

a) Opening stock (+) purchases (+) closing stock.
b) Opening stock (+) purchases (-) closing stock.
c) Opening stock (-) purchases (+) closing stock.
d) None of above.
8. In LIFO method of inventory valuation

a) Issue of stocks to production is at latest price.
b) Closing stock is at latest price.
c) Both a) & b).
9. In FIFO method of inventory valuation

a) Closing stock is at latest price.
b) Issue of stocks to production is at earliest price.
c) Both a) & b).
10. Which of the following is most desirable

a) Pricing issue of goods to match current material costs.
b) Overstating profits.
c) Understating profits.
11. In a market of falling prices which is the best option

a) LIFO.
b) FIFO.
c) Weighted average cost method (WACM).
d) b) or c)
12. In a rising market which is the best option
a) LIFO.
b) FIFO.
c) WACM.
d) b) or c)
13. As per accounting standards which of the following is not a preferred method
a) LIFO.
b) FIFO.
c) WACM.
d) All of them.
rectification is
15. Cost of goods sold reflects the usual physical flow of goods. This statement is true of
a) LIFO.
b) FIFO.
c) WACM.
d) Adjusted selling price method.
16. Under written down value method of depreciation., the W D V of the asset is always
a) equal to zero
b) < zero
c) > zero
17. Depreciation is an estimate because

a) rates of depreciation are not fixed
b) residual value of the asset is not known.
c) useful life of the asset is difficult to ascertain
d) b) & c) .
18. In sinking fund method of depreciation accounting

a) A fund is created at the beginning to which depreciation is charged annually
b) Since acquiring an asset results in sunk costs depreciation of the asset is called so
c) Depreciation charged annually is transferred to a fund which is invested in growth
and income generating securities to take care of the replacement of the asset
19. What is G A A P
a) General American Accounting Practices
b) Greatly Accepted Accounting Practices
c) Generally Accepted Accounting Principles.
d) Good American Accounting Practices
20. In operating lease the period is

a) Less than the useful life of the asset.
b) Greater than the useful life of the asset
c) Equal to the useful life of the asset
Clear answ ers
Score =
Correct Answers:
1. c 2. C 3. B 4. C 5. D 6. A 7. B 8. A 9. C 10. A 11. D 12. D 13. A 14. B 15. B 16.

C 17. D 18. C 19. C 20. A
33:10

FINANCE FOR BANKERS
All The Best !!!.
1. Liabilities have ________ balance and assets have ___________ balance.

a) Credit; debit
b) debit; credit
c) Credit; credit
d) nil; credit
2. Which one of the following statement is wrong?

a) Long term liabilities + Short term liabilities = Total outside liabilities
b) Net worth + Long term liabilities = Long term sources of funds
c) Current liabilities + Long term liabilities = Net worth
d) Networth + Long term liabilities + Current liabilities = Source of Funds
3. Surplus of long term sources over long term uses called

a) Quick assets
b) Net worth
c) Net working capital
d) Intangible assets
4. Which of the following does not match:

a) Pre-operative expenses (-) current liability
b) Outstanding expenses (-) current liability
c) Prepaid expenses (-) current assets
d) Preliminary expenses (-) intangible assets
5. Networking capital can be calculated as:

a) Long term sources (-) long term uses
b) Current assets (-) current liabilities
c) Current assets (-) current liabilities other than bank borrowings
d) Both (a) and (b)
6. The total liabilities of a firm are 50, its long term uses 20 and long term sources 30.
a) Current assets = 50 and current liabilities = 20
b) Current assets = 30 and current liabilities = 20
c) Current assets = 20 and current liabilities = 30
d) Current assets = 30 and current liabilities = 30
7. The total assets of a firm are 80 and its long term sources are 50 and net worth 20.
a) Current liabilities 30, total outside liabilities 60
b) Current liabilities 10, total outside liabilities 70
c) Current liabilities 20, total outside liabilities 60
d) Current liabilities cannot be worked as information is incomplete
8. A Car is a ________________(find the more suitable option from the following)

a) Current asset for a transport operator.
b) Fixed asset for a transport operator.
c) Current assets for a auto-mobile dealer /manufacturer and fixed assets for a
transport operator
d) Current assets for a auto-mobile dealer / manufacturer and transport operator
9. Letter of credit and Guarantees issued by banks on behalf of the organization is

tread as _________
a) Current liability
b) Current asset
c) Long term liability
d) Contingent liability
10. If a company issues bonus shares, the net worth of the company:
a) Will increase
b) Will not change
c) Will decline
d) It will change, may increase or decrease
11. A join stock companys total assets are Rs. 45 crore which include intangible assets
worth Rs. 2 cr. Its liabilities other than share capital and reserves are Rs. 40 cr.
What is the amount of tangible net worth?
a) 3 cr
b) 7 cr
c) 5 cr
d) 2 cr
12. A firm is having paid up capital of Rs. 2 lac, reserves of Rs. 1 lac, current liabilities
of Rs. 1 lac, prepaid expenses of Rs. 0.20 lac and preoperative expenses of Rs. 0.30
lac. What will be its tangible net worth:
a) Rs. 2.50 lac
b) Rs. 2.70 lac
c) Rs. 3 lac
d) Rs. 3.50 lac
13. A balance sheet shows total liabilities at Rs. 10 lac, current liabilities at Rs. 5 lac and
long term debt Rs. 2 lac and debit balance of profit and loss account at Rs. 1 lac.
The tangible net worth is
a) Rs. 2 lac
b) Rs. 4 lac
c) Rs. 3 lac
d) Rs. 5 lac
14. The term QUASI EQUITY refers to

a) Unsecured loans from friends and relatives which are pegged to our advance
b) Unpaid share capital
c) Capital reserve
d) All the above
15. In a milk society, the livelihood cows are classified as

a) A fixed assets
b) A current assets
c) Both the above
d) None of these
16. When the reserves of a company are capitalized, the result is :
a) a public issue
b) a private placement
c) rights issue of shares
d) bonus issue of shares
17. Calculate the tangible net worth from the following balance Sheet Capital Rs. 50,
000 , Fixed asset Rs. 60, 000 Term Loan Rs. 10, 000, Current Asset Rs. 30, 000,
Current Liabilities Rs.40,000 , Goodwill Rs. 10, 000
a) Rs.50, 000/-
b) Rs.10, 000/-
c) Rs.40, 000/-
d) Date insufficient
18. A company has net worth Rs. 5 lac, Term Liability Rs. 10 lacs. Fixed assets Rs. 16
lacs and Current assets Rs. 25 lacs. There is no intangible Assets or other Non
current assets. Calculate its Net Working Capital
a) Rs. 10 lac
b) Rs. 1 lac
c) Rs. 9 lac
d) Rs. (-) 1 lac
19. Current ratio is 2:5 Current Liability is Rs. 30, 000. The Net working capital is
a) Rs. 12, 000
b) Rs. 18, 000
c) Rs. (-) 45, 000
d) Rs. (-) 18, 000
20. In last year the Current Ratio was 3:1 and Quick Ratio was 2:1. Presently Current
ratio is 3:1 but quick Ratio is 1:1. This indicates comparably
a) high liquidity
b) higher stock
c) lower stock
d) high turnover
Clear answ ers
Score =
Correct Answers:
1. a 2. C 3. C 4. A 5. D 6. B 7. A 8. C 9. D 10. B 11. A 12. B 13. A 14. A 15. A 16.

D 17. C 18. D 19. D 20. B
JAIIB Quiz - Legal & Regulatory Aspects of

Banking
All The Best !!!.
1. The charge by way of lien over goods belonging to a company must be registered
with Registrar of Companies within a period of ______.
a) 30 days of creation of law
b) This charge need not be registered as this is not hypothecation, mortgage etc
c) 30 days of default in repayment
c) A or C whichever is earlier
2. DRT has jurisdiction relating to cases pertaining to Banks, Financial Institutions

with debt amount of.
a) Rs. 1 lakh and above
b) Rs. 5 lakh and above
c) Rs. 10 lakh and above
d) Rs. 15 lakh and above
3. The formation of a company is governed by the rules and regulations as contained

in ?
a) Indian Companies Act
b) RBI act
c) BR Act
4. For determining the advance amount the shares will be valued on the basis of.
a) Current market price
b) Average market price for the last 12 months
c) Face Value
d) A or B whichever is lower.
5. An Annuity is an ordinary Annuity if,

a) Payments are required to be made at the beginning of each period.
b) Payments are required to be made at the middle of each period
c) Payments are required to be made at ordinary instalments
d) Payments are required to be made at the end of each period.
6. Banking Ombudsman is appointed by

a) Central Government / Ministry of Finance
b) State Government
c) IDBI
d) RBI
7. A Customer Service Meet should be organized at every Branch .

a) Once in a Fortnight
b) Once in a Quarter
c) Once in a Month
d) Once in a Half Yearly
8. Who cannot file a complaint under Consumer Protection Act?

a) Banks
b) State Government
c) Public Interest Litigation Group
d) Persons receiving services free of charge
9. In how many days the opposite party can give the version of the case?
a) 5 days
b) 10 days
c) 30 days
d) no limit
10. The banking ombudsman receives maximum number of complaints in respect of;
a) foreign bank
b) public sector bank
c) regional rural bank
d) co- operative bank
Clear answ ers
Score =
Correct Answers:
1. b 2. C 3. A 4. D 5. D 6. D 7. D 8. D 9. C 10. b

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Which one doesn't come under the classification of scheduled banks?

a. Public Sector Banks

Which one doesn't come under the classification of scheduled banks?

a. Regulating the Money Market

a. Consumer price index

a.to promote confidence of public in banking system

Participatory notes are issued by

a. Cheque is not signed by the payee

c. only APL members

a. Hindustan National Investment

21. Participatory notes are issued by _____.

22. Which of the following can't be included in the

23. Which of the following is part of the money market?

24. As per Basel II recommendations, there are _____

25. Who regulates the Insurance Business in India?

26. As a cover for bank note issue, RBI keeps some

27. RBI exercises monetary control in India through

28. The apex institution which handles refinance for

29. LC which can be amended or cancelled by the

30. For controlling inflationary or deflationary situations

31. Which one of the following doesn't come under the

32. Sec _____ of RBI Act,1934 gives sole power to RBI

33. Certification Test for marketing & selling of mutual

34. Which of the following is not covered under selective

b. buffer stocks of sugar

35. Which one of the following doesn't come under the

36. Which one doesn't come under the classification of

37. Against which type of following security, the banks

38. Supervision over Capital Market and Stock

39. Which one is not a non-fund based service?

40. Participatory notes are not allowed to be issued to

1. Call Money means money lent/borrowed between

c. More than 14 days

2. BCSBI has been set up on the recommendations of

3. Which of the following products in retail banking do

4. Inter-Bank Term money means, borrowings among

5. Under forfaeiting, the exporter is able to transfer

6. CPs are issued normally for a tenure of_____.

7. The validity period of SEBI's observation letter for

8. Reforms in the financial services sector were initiated

9. Which of the following is value added service as part

10. Treasury bills are issued for a period of up to_____.

11. Notice Money means money lent/borrowed between

c. More than 14 days

12. Coins are issued by ____.

13. The negotiable financial instrument which is traded

14. Universal Banking means _____.

15. Which is not a major promoter of CIBIL?

16. Normally what type of movement is seen in interest

c. if bank rate is reduced, interest rate of Banks decrease

17. Which one is not a fund based service?

18. Which of the following can't be included in the

19. In strategic Alliance, the alliance partners ______.

20. Which of the following is an important reason for

a. Rs. 50000 equivalent

a) Cost push inflation

44. IS curve and LM curve relates which of the two variables?

b) Leads to fall in purchasing power

Daily Quiz - JAIIB-ACCOUNTING &

c) Cash drawn from bank.

d) Cheque deposited but not collected.

2. Which of the following is part of reconciliation

c) Bank charges debited.