NS Toor School of Banking

App: NS Toor App Email ns.toor@gmail.com Phone 01722665623

Important Question for

JAIIB- Principles and Practice of Banking
01. Supervision over the depositories and stock exchanges is the role of:
a RBI b IRDA
c SEBI d PFRDA
02. The funds based outside India and authorised by SEBI to invest in Indian equity market
through the stock exchange are called
a foreign institutional
investors
b overseas corporate
bodies
c non-resident funds
d foreigner investment
funds
03. Which of the following
denomination notes can
be issued by RBI:
a Rs.2 to Rs.1000

b Re 1 to Rs.1000
c Rs.1 to Rs.10000

d Rs.2 to Rs.10000
04. For controlling inflationary or deflationary situations in India, RBI makes use of (which one
is odd man out):
a Cash Reserve Ratio
b Statutory Liquidity ratio
c Open Market operations
d Liquidity adjustment facility
05. Against which type of the following security, the banks can sanction loans:
a commercial paper
b certificate of deposit
c FDR issued by other bank
d none of the above
06. Providing RTGS facility to a large corporate is part of which of the following types of
services under wholesale banking:
a fund based services
b value added services
c non-fund based services
d internet banking services
07. Global depository receipts are normally traded on:
a US Stock Exchanges
b European Stock exchanges
c International stock exchanges
d Indian stock exchanges
08. The contract notes issued by foreign institutional investors representing their investment in
Indian equity market is called
a participatory notes
b depository receipts

1
 NS Toor School of Banking
App: NS Toor App Email ns.toor@gmail.com Phone 01722665623

c stock options
d contract notes
09. The value of loan amount under retail lending in general (not under Basel), normally is in
the range of:
a Rs.10 lac to Rs.10 cr b Rs.5 lac to Rs.5 cr
c Rs.10 lac to Rs.1 cr d Rs.0.20 lac to Rs.1 cr
10. Providing banking facilities to the poor people of the society for mutual benefit of poor
persons as well as banks, is called
a financial literacy b financial inclusion
c narrow banking d universal banking
11. The lending and borrowing of funds between banks for one day (overnight) is called
a reserve money b term money
c notice money d call money
12. What is the amount that Cooperative Banks can borrow as % of their aggregate deposits as
at end of March of previous year, in the call/notice money market.
a 0.5% b 1%
c 2% d 5%
13. What is the maturity period range for issue of certificate of deposit?
a 7 days to one year b 7 days to 10 years
c 15 days to one year d 15 days to 10 years
14. What is the minimum and maximum amount for which commercial paper can be issued
a Rs.1 lac and Rs.1 cr
b Rs.1 lac and Rs.10 lac
c Rs.5 lac and Rs.5 lac
d Rs.5 lac and no ceiling on maximum
15. An interest rate swap is an arrangement between two parties who agree to make periodic
payment to each other for an agreed period, calculated on :
a principal plus accrued interest b actual principal amount
c notional principal amount d any of the above
16. In India, the foreign currency rates are fixed by:
a RBI b FEDAI
c FIMMDA d demand and supply
17. As per Foreign Exchange Management Act 1999, which of the following cannot be included
in foreign exchange:
a amount payable in foreign currency
b drafts and travellers’ cheques drawn in India but payable in foreign currency
c drafts and travellers’ cheques drawn in outside India but payable in Indian currency
d none of the above
18. Which of the following is not a characteristics of an equity share:
a it is called ordinary share also
b it represents complete ownership of the company
c the holder undertakes entrepreneurial risk associated with a business venture
d it provides voting right to the holder.
19. The term ‘security receipt’ represents which of the following:
a the receipt issued by a company for having received the security deposit for a contract
b where a company receives a receipt for deposit of security for various purchases
c the receipt issued by a securitization/reconstruction company in the process of
securitization of financial assets
d the receipt issued by a public company for the money receipt pending allotment of shares.
20. The holder of the ____ bond gets the equity shares on redemption of the bond

2
 NS Toor School of Banking
App: NS Toor App Email ns.toor@gmail.com Phone 01722665623

a coupon bond
b zero coupon bond
c convertible bond
d preference bond
21. In a book built public issue, the ratio of allocation between the retail investors, non-
institutional investors and qualified institutional buyers is:
a 15:35:50
b 35:15:50
c 50:35:15
d 50:35:15
22. Which of the following need not have registration with SEBI:
a underwriters
b retail investors
c qualified institutional buyers
d portfolio managers
23. Multi Commodity Exchange of India Ltd (MCX) does not deals with which of the following
futures transactions:
a bullion
b ferrous and non-ferrous metals
c agriculture commodities
d foreign exchange
24. The responsibility to make investment in various types of securities for a mutual fund lies
with which of the
following:
a sponsor
b trustee
c asset management
company
d custodians
25. Which of the following
is not a feature of an
open ended scheme
of a mutual fund
a plan is available for
subscription on a
continuous basis
b the repurchase facility
is made available by the fund on a continuous basis
c the scheme has a fixed maturity period
d the key feature of such scheme is the liquidity

1. c 2. a 3. d 4. d 5. d 6. b 7. b 8. a 9. d 10. b
11. d 12. c 13. a 14. d 15. c 16. d 17. d 18. b 19. c 20. c
21. b 22. b 23. d 24. c 25. c