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PPB Mock Test

Principles & Practices of banking

JAIIB Exam Study Material: PPB Mock Test

Eligibility Criteria for Banks undertaking Insurance Broking/Corporate Agency through a Subsidiary/JV ...... (i) Minimum Net Owned Fund of 1,000 crore, (ii) Minimum CRAR of 10 per cent, (iii) Net NPAs of less than 3 per cent and a profit making record for the last three years

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - c
.............................................

Weaker sectors include ...... (i) Small and Marginal farmers, (ii) Landless laborers, tenant farmers, artisans and village and cottage industries where credit limit does not exceed Rs.25000, (iii) Beneficiaries under SGSY, SJSRY, SLRS

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d
.............................................

Who controls appointments, reappointments, termination of Chairmen and CEOs of private banks?

a. Finance Minister
b. RBI
c. Governor of RBI directly
d. Ministry of Finance

Ans - b
.............................................

Which of the following norms are applicable to a new private sector bank? (i) The bank shall get its shares listed on the stock exchanges within two years of licensing, (ii) A minimum capital of Rs. 500 crore, (iii) The bank shall open at least 25 per cent of its branches in unbanked rural centres

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d
.............................................

Which of the following penalities, the RBI can impose as a bank incase it defaults in maintaining the required CRR? (i) It will impose penal interest upto 5% over the bank rate, (ii) It can impose a fine on the officer responcible for default, (iii) RBI can prohibit the schedule Bank from receiving any fresh deposits

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d
.............................................

What is the advantage of demutualized stock exchange over the mutual stock exchange? (i) the ownership is different from trading interest, (ii) the management is different from ownership and trading, (iii) the trading is different from the ownership and management

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d
.............................................

Which of the following conditions should be fulfilled by a business Enterprises providing any service under priority sector loans? (i) The original cost of equipment does not exceed Rs. 20 lac with a working capital limit of Rs. 10 lac or less, (ii) The aggregate of term loan and working capital should not exceed Rs. 20 lac

a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)

Ans - d
.............................................

A futures is a ...... (i) standard contract based on an agreement to buy or sell an assets at a certain price at a certain time in future, (ii) It is an obligation on the buyer to purchase the underlying instrument, (iii) It is an obligation on the seller to sell it

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d
.............................................

Which of the following disqualifies a person to become a chairman of a Bank? (i) If a person is engaged in any other business or vocation, (ii) If a person has substantial interest in another company or the firm, (iii) If a person is a Director of another company other than a subsidiary of a Bank

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d
.............................................

Total investments made in all subsidiaries and other entities that are engaged in financial services activities together with equity investments in entities engaged in non financial services activities should not exceed ...... of the bank’s paid-up share capital and reserves

a. 5 percent
b. 10 percent
c. 20 percent
d. 25 percent

Ans - c
.............................................

Which of the following statements, is correct regarding nomination? (i) Two or more hirers of a locker with joint signatures may nominate one or more persons as nominee who may have access to the locker, (ii) Even a minor can appoint a nominee but a major person has to sign on its behalf, (iii) If the nominee dies before the death of the depositors, the nomination automatically terminates

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d
.............................................

Scheduled commercial banks (SCBs) and primary dealers (PDs) have been allowed with effect from November 2006, to cover their short positions within an extended period of ......

a. five trading days
b. two trading days
c. short sales not permitted
d. none

Ans - a
.............................................

Which of the following orders, the RBI may pass when the affairs of a banking company are detrimental to the interest of public? (i) To call any officer of the Bank to discuss the matter with RBI officials, (ii) RBI may depute its officer to watch the proceedings at any meeting of the Board of Directors, (iii) To instruct Banking company to make within specified time the changes in the management

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - c
.............................................

What type of function is carried by the banks under bancassurance?

a. the banks develop their own insurance products and sell to their customers
b. the banks develop their own insurance products and sell through of other companies
c. the banks dstribute insurance products of other companies to their customers as agents
d. the banks distribute insurance products of other companies to their customers as agents with with-risk or without-risk features

Ans - c
.............................................

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