JAIIB Sample Papers 2012:-

1. Securitisation is a process of acquiring the loans classifed as

a) Bookdebts
b) Performing debts
c) Bad debts
d) Non performing debts
Ans: !d)
". #he minimum percentage of Priorit$ Sector ad%ances to be maintained b$
foreign banks in &ndia
a) '()
b) 1*)
c) +")
d) ,()
Ans: ! c )
+. -oan for fsh rearing is co%ered under Prirorit$ Sector as ad%ances
a) .irect Agriculture
b) &ndirect Agriculture
c) Self /mplo$ment Scheme
d) Allied to indirect Agriculture
Ans: !a)

'. 0ash Budget is a statement of
a) 0ashNon cash funds
b) 0ash receipt and 0ash pa$ments
c) Another name for cash 1o2
d) None
Ans: !b)
3. &n bank4s parlance credit risk in lending is
a) .efault of the banker to maintain 055
b) .efault of the banker to maintain S-5
c) .efault of the banker to release credit to the customer
d) .efault of the customer to repa$ the loan
Ans: !d)
,. #he ape6 institution 2hich handles refnance for agriculture and rural
de%elopment is called:
a) 5B&
b) S&.B&
c) NABA5.
d) S/B&
Ans: ! c )
7. -ong 8orm Audit 5eport !-8A5) is prepared and submitted b$
a) 5B& inspectors
b) &nternal inspectors
c) Statutor$ auditors
d) 0oncurrent auditors
Ans: ! c )
*. As per 8&99.A4s guidelines: the 9id;<ce is responsible for:
a) .ealing acti%ities
b) 5isk 9anagement
c) 5econciliation
d) 0onfrmation of deals
Ans: !b)
=.&nterest is calculated on actual>+,3 da$s basis in respect of the follo2ing
products: e6cept one :

a) 0all 9one$
b) Notice 9one$
c) #erm 9one$
d) ?;& dated securities
Ans: !d)
1(.@hich 2as the frst 9utual 8und started in &ndia:
a) SB& 9utual 8und
b) Aotak Pioneer 9utual 8und
c) &ndian Bank 9utual 8und
d) None of the abo%e
Ans: !d)
11.#he regulator for 9utual 8unds in &ndia is:
a) 8&99.A
b) A98&
c) 5B&
d) S/B&
Ans: !d)
1". 8&99.A4s general principles and procedures are applicable to:
a) 8i6ed &ncome 9arkets
b) 9one$ 9arkets
c) .eri%ati%es 9arkets
d) All of the abo%e
Ans: !d)
1+. Bour bank4s customer CBD -td: enEo$s a 00 limit of 5s.1:((:(((.(( #he 00
account sho2s a credit balance of 5s:1(:"(3.((. #he relationship bet2een $our
bank and CBD -td is:
a) .ebtor>0reditor
b) 0reditor>.ebtor
c) Bailor>Bailee
d) Bailee>Bailor
Ans: !a)
1'. #he right of setoF is:
a) 0ustomer4s 5ight
b) 0ustomer4s ;bligation
c) Banker4s 5ight
d) Banker4s .iscretion
Ans: !d)
13. @hich of the follo2ing forms of business are permissible under B5 Act:
a) Borro2ing
b) &ssuance of -etters of 0redit
c) Bu$ing and selling of bullion
d) All of the abo%e
Ans: !d)
1,. A 0o;perati%e Bank operating in diFerent States are regulated b$:
a) State 0o;perati%e Societies Act
b) Banking 5egulation Act
c) 9ulti Gnit 0o;perati%e Societies Act
d) Banking -a2s !applicable to 0o;perati%e Societies)
Ans: ! c )
17. &n respect of 5egional 5ural Banks: the share holding pattern is:
a) 0entral ?o%ernment 3():State ?o%ernment +3):Sponsoring Bank 13)
b) 0entral ?o%ernment 3():State ?o%ernment 13):Sponsoring Bank +3)
b) 0entral ?o%ernment 13):State ?o%ernment +3):Sponsoring Bank 3()
b) 0entral ?o%ernment +3):State ?o%ernment 3():Sponsoring Bank 13)

Ans: !b)
1*. -a2 of limitation is not applicable in respect of :
a) Ad%ance against pledge of shares
b) 00 granted against h$pothecation of in%entor$
c) #erm loan secured b$ mortgage of Plant H 9achiner$
d) Bank #erm .eposit
Ans: !d)
1=. A bank in &ndia: 2ants to undertake capital market acti%ities: it should:
a) ;btain special license from A98&
b) ;btain special license from 8&99.A
c) Both a and b
d) 5egister 2ith S/B&
Ans: !d)
"(. 8&99.A stands for:
a) 8oreign /6change 9arkets and .eri%ati%e 9arkets
b) 8i6ed &ncome 9arkets 9one$ 9arkets and .eri%ati%es 9arkets
c) 8i6ed &ncome 9arkets and .eri%ati%es 9arkets
d) None of the abo%e
Ans: !b)
"1. #he 0apital Adequac$ 5atio is :

a) ,)
b) *)
c) =)
d) 1()
Ans: ! c )
"". /6cept one of the follo2ing others are kno2n as Non 8und based facilities:
a) -etters of 0redit
b) Bank ?uarantees
c) 0oacceptance of Bills
d) #rust 5eceipt
Ans: !d)
"+. 8&99.A4s guidelines co%er the follo2ing products: e6cept one:
a) 0all 9one$
b) 0ross 0urrenc$ &nterest 5ate s2aps
c) 0ommercial Paper
d) 0ertifcate of .eposit
Ans: !b)
"'. /6cept one of the follo2ing others are part of Public Sector Banks:
a) State Bank of I$derabad
b) 0entral Bank of &ndia
c) 5egional 5ural Bank: sponsored b$ a nationaliJed bank
d) I.80 Bank
Ans: !d)
"3. A banker is e6pected to honour the cheques 2ithin the specifed banking hours
as per Section of N& Act:1**1
a) ""
b) "3
c) +1
d) ,3
Ans: !d)
",. #he term K0redit 9anagementL co%ers

a) 0apital adequac$ norms
b) 5isk management including Asset>-iabilit$ management
c) 0redit appraisal M decision and re%ie2 of loans H ad%ances
d) All of the abo%e
Ans: !d)
"7. Bank4s Assets are classifed in to standard assets: substandard assets doubtful
assets and loss assets: based on the recommendations of 0ommittee

a) 5angaraEan
b) Narasimham
c) ?hosh
d) #andon
Ans: !b)
"*. #he time taken to con%ert cash into ra2 materials: semi fnished goods: fnished
goods and into cash : is kno2n as
a) #rade c$cle
b) 0ash c$cle
c) ;perating c$cle
d) 5e%ol%ing c$cle
Ans: ! c )
"=.A compan$ 2hich pools mone$ from in%estors and in%ests in stocks: bonds:
shares is called
a) A bank
b) An insurance compan$
c) Bancassurance
d) 9utual 8und
Ans: !d)
+(. Bancassurance is
a) An insurance scheme to insure bank deposits
b) An insurance scheme to insure bank ad%ances
c) A composite fnancial ser%ice oFering both bank and insurance products
d) A bank deposit scheme e6clusi%el$ for emplo$ees of insurance companies

Ans: ! c )
+1. Nohn H Names are friends aged 1' H 13 respecti%el$. #he$ 2ant to open a Eoint
account in $our bank. Bou 2ill
a) Allo2 them to open a Eoint account to be operated Eointl$
b) Allo2 them to open a Eoint account 2ith operating instructions /ither or Sur%i%or
c) Allo2 them to open a Eoint account 2ith operating instructions 8ormer or Sur%i%or
d) Allo2 them to open a Eoint account 2ith operating instructions An$ one or
Sur%i%or
Ans: !a)
+". 9r.Atmaram as director of a -td compan$ e6pired. Bank recei%ed a cheque
signed b$ 9r.Atmaram as director of the -td compan$. #he bank
a) 0an honour the cheque onl$ after obtaining confrmation from other directors
b) 0an honour the cheque
c) 0annot hounour the cheque
d) #he compan$ should issue a stop pa$ment instructions to the bank

Ans: !b)
++. #ele banking ser%ice is based on
a) Oirtual Banking
b) ;nline Banking
c) Ooice processing
d) 0ore Banking

Ans: ! c )
+'. Securitisation is a process of acquiring the loans classifed as
a) Bookdebts
b) Performing debts
c) Bad debts
d) Non performing debts
Ans: !d)
+3. #he minimum percentage of Priorit$ Sector ad%ances to be maintained b$
foreign banks in &ndia
a
) '()
b) 1*)
c) +")
d) ,()