DAILY QUIZ - JAIIB - 02-04-2017

Over-the-counter (OTC) derivatives are ...... (i) Traded directly between 2 eligible parties,
(ii) with/without use of an intermediary, (iii) without going through an exchange

a. Only (i) and (ii)

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

Statutory Liquidity Ratio (SLR) can be maintained in ...... (i) Cash, (iii) Gold, (iii)
Unencumbered approved securities
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
The purpose of maintaining Cash Reserve with RBI by commercial banks is ...... (i)
To enable RBI to control the credit, (ii) To provide better liquidity for banking
system, (iii) To enable commercial banks to meet crises & emergencies
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 statements, is/are correct regarding bank rate? (i) Bank rate
affects inflation rate, (ii) Interest on loans & advances is generally higher than the
bank rate, (iii) It has no relation with the interest charged by Banks on loans &
advances
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
Spread can be defined as ......
a. Difference between interest income & interest expenditure
b. Total yield on accounts of interest
c. Profit margin of a bank
d. Extent of risk on advances
Ans - a
.............................................

Which of the following statement, is/are not correct regarding CRR? (i) The
minimum CRR is 3% of Bank's demand & time liabilities, (ii) RBI does not pay any
interest on first 3% of CRR amount held with it, (iii) RBI is bound to pay interest on
cash balance held with it beyond 3% level
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................
 Which of the following guidelines are applicable in connection with shortfall in
lending to priority sector? (i) Any shortfall in achieving sub-target under SSI sector,
an equivalent amount should be invested with SIDBI, (ii) An equivalent amount of
shortfall under agriculture sector should be invested with RIDF, (iii) Interest of RIDF
investment is payable at 2%
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
Which of the following articles fall under priority sector? (i) Education loans, (ii)
Micro credit to Self help groups, (iii) Loan to Renewable Energy sector
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 statement, is/are not correct regarding the operations of new
private sector banks? (i) The bank shall open at least 20 per cent of its branches in
unbanked rural centres, (ii) They will not be allowed to set up any subsidiary or
mutual fund for atleast 3 years after its establishment, (iii) They need to achieve
priority sector target of 40% of the net bank credit

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
In periods of boom, which leads to economic instability Reserve Bank does not
resort to ...... (i) Selling of first class securities in its possession in the market, to
reduce the supply of money as a measure of open market operations, (ii) Buying of
approved securities in the market as a measure of open market operations, (iii)
Increasing the bank rate as a measure of open market operations
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 statements, is/are correct? (i) The place of bussiness for the
purpose of a bank branch is where deposits are received, cheques encashed or
moneys lent, (ii) It is not necessary for a bank to obtain license if branch is to open
for 30 days or less, (iii) It is necessary for a bank to obtain licence from the RBI to
open a new branch, change of location of a branch

a. Only (i) and (ii)

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

DAILY QUIZ - JAIIB - 03-04-2017

A Forward Rate Agreement is ...... (i) a financial contract between two parties, (ii) to
exchange interest payments for a 'notional principal' amount on settlement date,
(iii) for a specified period from start date to maturity date
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 statements, is correct regarding nomination? (i) Bank is not
obliged to receive any notice of claim from any other person other than the
depositors, (ii) Bank will have a full discharge of its liability if it makes the payment
to the nominee, (iii) Two or more persons can be nominated by a depositor or group
of depositors
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................

Which of the following statements, is/are correct regarding SLR requirement? (i) RBI
uses SLR as an instrument of credit control, (ii) The minimum amount of SLR is25%
of demand & time liabilities as at the end of any particular day, (iii) The RBI can
increase the level of SLR upto 40% ofdemand and time liabilities

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................
Which of the following is/are included in 'CAMELS'? (i) Employees Performance, (ii)
Management and Earning Performance, (iii) Capital adequacy and assets Quality
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
Which of the following statement is correct regarding CAMELS Approach? (i) The
Reserve Bank of India is the authority to decide Ratings, (ii) The banks have been
classified into two categories for the purpose of Rating, (iii) For the Rating of
Foreign banks compliance with regulatory guidelines is significant
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 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
.............................................
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
.............................................
What does moral suasion imply? (i) RBI may issue certain guidelines to be followed
during a particular period, (ii) It is a kind of presentation and request made by RBI
on commercial Banks, (iii) RBI may advise to provide favorable conditions for Bank
credit in the period of business recession
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
What are the implications of moral suasion? (i) It has legal sanction, (ii) It has only
psychological advantage, (iii) It may be or not be an effective tool
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................

Which of the following is/are correct regarding selective credit control ? (i) Selective
credit controls are used to control inflationary pressure, (ii) Bank credit to
consumers to raise demand for durable consumer goods will also lead to inflation,
(iii) Bank loans extended to speculators to hoard goods will lead to inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
What is Repo? (i) It is a method of borrowing against certain securities for a short
period, (ii) The borrower undertake a commitment to purchase back the same
securities after specified period at predetermined price, (iii) It is helpful in
contracting liquidity in the system
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
DAILY QUIZ - JAIIB - 04-04-2017
Rationing of credit is ......

a. A process of controlling and regulating the purpose of credit

b. Where RBI can put variable portfolio ceilings fixing maximum amount of
loan for a Bank
c. Where RBI can put variable capital asset ratio i.e., the ratio of total assets
to capital of the Bank
d. Any one or all the above
Ans - d
.............................................
Which of the following commodities, is/are covered under selective credit
control? (i) Cotton and textiles, (ii) Synthetics textiles, (iii) Raw Jute
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
What are the important features of the Liquidity Adjustment Facility? (i) It
provides scope for more participants, (ii) It affects liquidity in the system, (iii)
Interest rates have been stabilized
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
Under Interim Liquidity adjustment Facility was managed through ......
a. Repos
b. Collateral lending facility
c. Open market operations
d. All the above
Ans - d
.............................................
What is open market operations being conducted by the Reserve bank of
India? (i) It has direct impact on cash base of the commercial bank, (ii) It is a
process of buying and selling govt. securities by the RBI on behalf of the
government, (iii) It doesn't have any direct impact on cash base of the
commercial bank
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
What are the major objectives of credit policy? (i) To control money supply, (ii)
To attain full employment, (iii) To maintain price stability
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 statement, is correct regarding Risk Based supervision

of RBI? (i) The RBI will have effective review, evaluation and follow-up of the
risk profile of the concerned bank, (ii) The focal point of contacts for all banks
would be central office of RBI and its Regional offices, (iii) The risk profile
would focus on high risk areas
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
What are the features of selective credit control? (i) They effect only the
lenders but not the borrowers, (ii) They distinguish between essential and
non-essential uses of Bank credit, (iii) Only non-essential uses are brought
under the scope of Credit Bank controls
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
Which of the following statements, is/are correct in respect of maintenance of
SLR? (i) RBI decided the method of valuation of securities for the purpose of
SLR, (ii) The Narasimha Committee suggested to bring down the level of SLR
to 25%, (iii) Any cash balance with RBI in excess of mandatory requirement
under section 42 will be included as cash for the purpose of SLR
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 statements, is/are not correct in respect of incremental
CRR? (i) RBI can impose incremental CRR on demand & time liabilities, (ii)
Incremental would be applicable only to additional deposits added after a
specified date, (iii) The system of incremental CRR has been dispensed with
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
Which of the following statements are not correct? (i) In India, foreign
exchange regulations are administered by Reserve Bank of India, (ii) Reserve
Bank of India maintains the external value of rupee, (iii) Reserve Bank of India
does not deal in foreign exchange directly with the public
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
DAILY QUIZ - JAIIB - 05-04-2017
A bank should pay attention to which of the following parts, while
sanctioning loans ? (i) Money advanced should earn reasonable yield to
the bank, (ii) It is repaid in time, (iii) It raise the living standard of the
borrower
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
Promissory note is ...... (i) In writing, containing unconditional
undertaking or promise, (ii) Signed by the maker, (iii) requires payment
of stamp duty

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
Whether a minor can he appointed as a mandate holder to operate a
current account including power of over drawing of the account ?
a. No, a minor is incompetent to contract.
b. Yes, a minor may be allowed to operate the account but not to
overdraw the account.
c. Yes, there is no bar to a minor being appointed as an agent and
operate the account including overdraw the account. In accordance with
the authority given.
d. All of the above
Ans - a
.............................................
It is advisable to have the bank's name boards prominently displayed on
the go downs containing the hypothecated goods to ...... (i) avoid a
possible attempt being made by the Receiver in the event of the
borrower's insolvency to treat the borrower as the 'reputed owner' of the
hypothecated goods, (ii) obviate the possibility of the same goods being
hypothecated to another bank
a. Only (i)
b. Only (ii)
c. Both (i) and (ii)
d. Neither (i) nor (ii)
Ans - c
.............................................
A power of attorney is terminated in the following occasions. (i) death of
the customer, (ii) lunacy of the customer, (iii) insolvency of the customer
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
A bank grants a CC of Rs.10 crores line of credit to a client, against
hypothecation of stocks. The is margin of 25%. If the client wants to avail
of the full limit of Rs.10 crores, the minimum stocks required is ......
a. Rs 10.00 crores
b. Rs 7.50 crores
c. Rs.12.50 crores
d. Rs.13.5 crores
Ans - d
.............................................
A mortgage is the transfer of an interest in specific immovable property
for the purpose of securing the payment of money advanced ......
a. by way of loan
b. an existing or future debt
c. or performance of an engagement which may give rise to a pecuniary
liability
d. All of the above
Ans - d
.............................................
Match the following:
i) Narashimam Committee A - Current Ratio
ii) Short term solvency B - Export Finance
iii) ECGC C Standard Assets
iv) Stand by l/c D - Trade Finance
a. i) D ii) A iii) B iv) C
b. i) C ii) A iii) B iv) D
c. i) A ii) B iii) C iv) D
d. i) B ii) D iii) C iv) A
Ans - b
.............................................
The assignment of a debt is, not considered as a satisfactory security
and is taken only in exceptional cases where the borrower's credit is
excellent and the banker may not have to learn much on the security
because ...... (i) the assignee only stands in the shoes of the assignor
and can not have better rights than those which the assign possesses,
(ii) the value of the assignment of a debt as security depends not only
upon the integrity of the borrower who offers the security but also on the
credit worthiness and integrity to the borrower's debtor whose debt is
assigned, (iii) If there is breach of the terms of the contact between the
parties assignor and his debtor - it may result in the repudiation of the
debt
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
After close of business hours by 4.00 p.m., the account holder himself
availed payment. At 4.45 p.m. income tax attachment order is received
by bank. What would be the liability of paying bank?
a. payment is made in due course and as payment is debitable next day,
bank is protected
b. payment is not in due course since paid after reasonable time
c. attachment order will be effective after banks right of lien over the
late payment
d. bank should approach the customer to get the order changed to next
day
Ans - b
.............................................
Mr. X issued a cheque at 4:15 p.m. (after close of business hours) to Mr.
Y. Mr. Y approached to the bank and on request paid the money at 4:30
p.m. as late payment. Mr. X arrived to the bank and stopped payment of
cheque issued to Mr. Y at 4:45 p.m. on the same day. Who is liable for
loss?
a. payment after Business Hours is not a payment in due Course hence
bank is liable, Section 10 N.I. Act
b. Payment even though after business hours but within banking hours is
protected under Section 31
c. Payment late for today is protected under Section 85
d. Refused to accept stop payment instructions since late for today
Ans - a
.............................................
In non-fund based credit facilities ...... (i) cash outflow may or may not
take place, (ii) If it takes place that it is not immediate. It would be at
future date, (iii) cash outflow is immediate
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
DAILY QUIZ - JAIIB - 06-04-2017
Letter of continuity is obtained in case of ...... (i) Demand Loan, (ii)
Overdraft a/c, (iii) Cash Credit (Hyp.) a/c
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
The limitation period of a demand loan document is ......
a. three years from the date of DPN
b. 27 months
c. no limit
d. Five years
Ans - a
.............................................
In Banking practice, credit risk doesn't refer to ...... (i) default of a
borrower in repayment of loan, (ii) Banker's default in releasing
credit to a borrower, (iii) default of a banker in maintaining SLR
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
Advances against trust receipts are treated as ......
a. secured advances
b. partly secured advances
c. clean advances
d. All of these
Ans - c
.............................................
Stock Exchange Securities comprise of ...... (i) Govt. securities
issued by central and state governments, (ii) Shares and debentures
of companies, (iii) Municipal Bonds. Port Trust and Improvement
Trust Bonds
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
The gilt-edged securities do not refer to ...... (i) Shares of blue chip
companies, (ii) Securities which gilters, (iii) Securities or investment,
where the risk is normal or zero in regard to payment of principal
and interest
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................

Which of the following statement/s is/are true ? (i) An equitable

mortgage of the building constructed on the land in cantonment
areas is not considered to be a goods security. Only legal mortgage
may be accepted, (ii) A mortgage by deposit of title deeds takes
effect against any mortgage deed subsequently executed and
registered which relates to the same property, (iii) If the mortgagor
is a limited company, the charge by way of mortgage simple,
equitable or of any other nature must be filed for registration with
the Registrar of Companies.
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
According to the law of limitation, a suit on the basis of registered
mortgage deed/equitable mortgage for recovery of mortgage
money must be filed before the expiry of 12 years from the date of
advance. If the bank want to enforce the personal covenant against
the mortgagor, the suit will have to be filed :
a. within 3 years of the advance
b. within 12 years of the advance
c. it is not possible to make the mortgagor personality liable for the
debts
d. None of the above
Ans - a
.............................................
A Bank gave an advance against bills drawn on military and other
authorities. The borrower submitted a Power of Attorney favouring
the Bank for obtaining the payment from the drawees. But before
the Bank received the payment the amount due came under
attachment by a court.
a. The debt due to the banker cannot be paid out of the bill
realization.
b. The power of attorney coupled with endorsement did not amount
to assignment of the fund.
c. The power of attorney coupled with endorsement amounted to
assignment of the fund as such the debt to the bank would be paid
out of the bill realization which formed a 'specific fund'.
d. None of the above
Ans - c
.............................................
A person, who is authorized by a Current Account holder to operate
on his account under a power of attorney. He has to sign cheques as
......
a. sans recourse
b. for self and on behalf of
c. per pro
d. on behalf of
Ans - c
.............................................
Fund based credit facilities are those facilities, where ......
a. the cash outflow is immediate
b. no cash outflow
c. cash outflow may or may not take place
d. All of the above
Ans - a
.............................................
Periodical inspection of the goods is one of the ways of supervising
the advance. During a visit the inspecting officer should ascertain
that ...... (i) the hypothecated stock is not over-valued, (ii) there is
satisfactory turnover of stocks, (iii) the goods forming the bank's
security are paid for by the borrowers
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
DAILY QUIZ - JAIIB - 07-04-2017
If the possession on the goods or securities pledged is lost, it is
deemed to have come to an end in case of ...... (i) Where a
Trust Receipt is executed, (ii) Where a letter of Pledge is
executed, (iii) Where a letter of Hypothecation is executed
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
Letter of continuity is obtained in running account, viz.,
overdraft or cash credit, in order to :
a. ensure that the advance does not become time barred under
the Limitation Act
b. provide continuous validity or life to DPN, subject to overall
limitation of three years
c. enable the bank to consider the loan as secured loan
d. All of the above
Ans - d
.............................................
In the case of hypothecation advances, statements of stocks
are taken periodically from the borrowers with a declaration
regarding their clear title to the goods and the correctness of
the quantity, quality and valuation thereof. These
declarations ...... (i) are required to be signed by the persons
authorized to operate on the account, (ii) bind the borrowers,
(iii) form the basis of the hypothecation advance
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
A father mortgaged, as surety, joint Hindu family property
favoring a bank which finance his son for a business. Upon
default by the son, the bank can enforce the mortgage :
a. to the extent of father's interest in the property
b. to the extent of son's interest in the property
c. against the interest of both (father and son) in the property
d. None of the above
Ans - a
.............................................
Primary security is one which ...... (i) is created out of loan
amount, (ii) Is the main security to cover the advance and is
owned by the borrower, (iii) can be sold in primary money
market
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
Mr. X has a bank account and credited Rs. 10 lakh in it
subsequently he was arrested on charges of fraud. The police
informed the bank for not allowing withdrawals from his
account. Two days later, bank receives a cheque of Rs. 20000
favoring his creditor. What should the bank do?
a. not to pay cheque
b. return cheque with memo stating A/c holder in jail
c. honour the cheque
d. get police orders for payment
Ans - c
.............................................
A collateral security refers to ...... (i) is created out of loan
amount, (ii) a security which is available parallel to or side by
side with the bankers personal right of action against the
borrower, (iii) a security which is offered in addition to prime
security to secure the advance of the bank. Collateral security
may belong to borrower on third party
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
A credit voucher for Rs.10000 favoring Raj was wrongly posted
to Ram by the bank, the relationship established with Ram is of
......
a. trustee and beneficiary
b. debtor and guarantor
c. creditor and indemnifier
d. creditor and debtor
Ans - d
.............................................
Account holder X draws a cheque for Rs.5,000 favouring Raj (a
minor aged 13 years) or dearer. Raj presents the cheque on
counter duly signed on the back. What should the banker do
with the Cheque of a minor?
a. refuse, since no contractual capacity
b. pay the cheque after inquiring with X
c. pay to Raj without any responsibility of bank
d. ask Raj to bring his parents
Ans - c
.............................................
Reserve Bank of India has given freedom to the participating
banks in consortium to frame ground rules for the consortium
arrangements, such as ...... (i) rules for entry/exist from the
consortium, (ii) minimum and maximum share of each bank,
(iii) number of participating banks
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
The banks in the consortium may frame their own rules relating
to ...... (i) the fees or charges to be paid to the leader bank
towards services provided by the leader bank, (ii) grant of
facility by a non-member bank to the borrower, (iii) sanction of
adhoc/additional credit facilities in exigencies by leader
bank/other banks
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
.............................................
Cheque drawn for Raj or order is stolen. The thief made
endorsement as Raj on the cheque in his favour. The cheque is
presented in clearing and paid by bank. True owner later on
sent legal notice to bank. What is the liability of the bank?
a. the paying bank will get protection under N.I. Act
b. forgery does not give any rights to bank, hence liable
c. under section 85, the paying bank is liable
d. under section 131, the paying bank is liable
Ans - a
.............................................
DAILY QUIZ - JAIIB - 09-04-2017
An electrical connection on the computer into which a
cable can be plugged sthat the computer can
communicate with other devices such as printer or modem
is called as ......
a. Protocol
b. Port
c. Socket
d. Link
Ans - b
.............................................
How is data processing handled in a Multi-user computer
net working system?
a. At a centralized place
b. In the computer being used
c. At multi point situations
d. At the networking place
Ans - a
.............................................
The advantage of processor smart cards are ......
a. Security
b. Reliability
c. Longer life
d. All of above
Ans - d
.............................................
The charge card offers ......
a. Revolving credit for certain period
b. Payoff the entire amount of card usage
c. Online recover of amount of card usage
d. All of above
Ans - b
.............................................
A twisted pair cable consists of ......
a. Twinsulated copper wire
b. An inner copper conductor held in position by circular
spacers
c. Single copper wire
d. All of above
Ans - a
.............................................
Which is not the functioning of a Dumb terminal?
a. Sending information
b. Receiving information
c. Memory processing
d. None of the above
Ans - c
.............................................
A portable computer smaller than a notebook (or laptop)
computer that fits on the palm of your hand is called
as ...... (i) Palmtop computer, (ii) Laptop, (iii) Handheld
computer
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................
NIBBLE is a combination of ...... bits
a. 2
b. 4
c. 8
d. 16
Ans - b
.............................................
A circuit in memory that represents a single bit of
information is called as ......
a. Memory
b. Storage
c. Memory Cell
d. None of the above
Ans - c
.............................................
When data is written and stored on two hard discs
simultaneously, over the different channels, the system is
known as ......
a. Data mirroring
b. Disc mirroring
c. Data duplex
d. Disc duplex
Ans - b
.............................................
A message switcher is used to ......
a. Store and forward data tlarge number of terminals over
a single communication channel
b. Send more than one signal simultaneously over a single
communication channel
c. Intercept and handle communication activities for the
host computer
d. All of above
Ans - a
.............................................
DAILY QUIZ - JAIIB - 10-04-2017
The upper value limit of an individual national
electronic funds transfer (NEFT) transaction is ......
a. Rs. 20000
b. Rs. 50000
c. Rs. 100000
d. None of these
Ans - d
.............................................
Banks can use a corporate website for ......
a. Dissemination of information
b. Financial advice
c. Accounts services
d. All of these
Ans - d
.............................................
Which are the basic features of Intranet? (i) A private
network established by an organization for the
exclusive use of its employees, (ii) Anyone with the IP
address can access, (iii) Firewalls prevent outsiders
from gaining access tan organizations intranet
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................
A network device that connects multiple computers on
a LAN sthat they can communicate with another
network and the internet is called as ......
a. Node
b. Hub
c. Port
d. Firewall
Ans - b
.............................................
The structure of the network, including physical
connections such as wiring schemes and logical
interactions between network devices is called as ......
a. Protocol
b. Firewall
c. Intranet
d. Topology
Ans - d
.............................................
Compared ta manual system, in a computer
system ......
a. The methodologies for implementing controls
change
b. Basic controls objectives change
c. Control objectives are more difficult tachieve
d. All of above
Ans - d
.............................................
Objective of IS security is to ensure ......
a. Confidentiality
b. Integrity
c. Availability
d. All of above
Ans - d
.............................................
IS audit for the software used is carried out by CAATT.
This type is known as ......
a. The audit around the computer
b. The audit through the computer
c. The audit with the computer
d. All of above
Ans - c
.............................................
What is Topology?
a. The plan in which different nodes are inter-
connected in LAN
b. The plan in which different nodes are inter-
connected in WAN
c. The plan in which various devices are
interconnected
d. None of these
Ans - c
.............................................
When input data is written and stored in two hard discs
over the same channel simultaneously, the system is
known as ......
a. Data mirroring
b. Disc mirroring
c. Data duplex
d. Disc duplex
Ans - b
.............................................
...... is a set of techniques used in websites and web
applications in order to determine the web browser
that a visitor is using, and to serve browser-
appropriate content to the visitors.
a. Phishing
b. Spoofing attack
c. Browser Sniffing
d. Virus
Ans - c
.............................................
Proper functioning of a computerized system is
ensured by ......
a. Generation of audit trails
b. Exceptional transaction report
c. Tallying of cash book
d. All of above
Ans - d
.............................................
DAILY QUIZ - JAIIB - 11-04-2017
In ring topology ......
a. Each node is joined to the central node by a
separate link
b. Devices are connected in a closed loop
c. Information is passed from one node to the
other in series
d. Both b and c
Ans - d
.............................................
...... is the attempt to acquire sensitive information
such as usernames, passwords, and credit card
details (and sometimes, indirectly, money) by
masquerading as a trustworthy entity in an
electronic communication.
a. Phishing
b. Spoofing attack
c. Browser Sniffing
d. Virus
Ans - a
.............................................
Which one is not a centralized controlling
topology?
a. Star
b. Bus
c. Tree
d. Loop
Ans - b
.............................................
Multiplexer is used to ......
a. Store and forward data to large number of
terminals over a single communication channel
b. Send more than one signal simultaneously over
a single communication channel
c. Intercept and handle communication activities
for the host computer
d. All of above
Ans - d
.............................................
A coaxial cable consists of ......
a. Twinsulated copper wire
b. An inner copper conductor held in position by
circular spacers
c. Single copper wire
d. All of above
Ans - a
.............................................
PIN is ...... (i) Randomly generated sequence of
digits, (ii) Postal index number, (iii) Stored in
magnetic strip of the card
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................
Systems can be interconnected in WAN ......
a. With a single cable
b. Through electrical connections
c. Through telecommunication, satellite &
microwave system
d. Through wireless system
Ans - c
.............................................
...... is a situation in which one person or program
successfully represents oneself as another by
falsifying data and thereby gaining an illegitimate
advantage
a. Phishing
b. Spoofing attack
c. Browser Sniffing
d. Virus
Ans - b
.............................................
Cheque truncation can be done by ...... (i) Using
MICR data, (ii) Sending Cheque by speed post, (iii)
Using image processing
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................
Mobile banking offers the following ...... (i)
Withdrawal of cash anywhere in India, (ii)
Statement of account for a specific period, (iii)
Transfer of funds from account to another account
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
The committee which has recommended for
establishment of data warehouse is known as ......
a. Vasudevan Committee
b. Rangarajan Committee
c. Saraf Committee
d. Shere Committee
Ans - a
.............................................
Electronic purse may have following number of
storage space ......
a. Only one
b. Two
c. Several
d. Nstorage space
Ans - c
.............................................
DAILY QUIZ - JAIIB - 12-04-2017
According to marketing four Ps, credit terms
can be classified as ......
a. Place
b. Product
c. Price
d. Promotion
Ans - c
.............................................
What among the following are the primary
characteristics that information must process?
i) Relevance, ii) Availability, iii) Timeliness, iv)
Accuracy
a. Only i, ii, and iii
b. Only ii, iii and iv
c. Only i, iii and iv
d. All i, ii, iii, and iv
Ans - a
.............................................
Social grade is a means of classifying the
population by ......
a. Needs
b. Occupation
c. Behaviour
d. Personality
Ans - b
.............................................
...... are those who purchase items for their
personal consumption.
a. Industrial Buyers
b. Organizational Buyers
c. Consumer buyers
d. Personal Buyers
Ans - c
.............................................
Which of the following models are developed
on the principles of business management,
accounting and econometrics?
a. Behavioral model
b. Management science models
c. Operations research models
d. Policy making models
Ans - b
.............................................
An ...................... is a set of processes and
procedures that transform data into
information and knowledge.
a. information system
b. Knowledge system
c. Database system
d. Computer system
Ans - a
.............................................
From buyers point of view, product is
considered as ......
a. Customers cost
b. Customer solution
c. Convenient availability
d. Communication
Ans - a
.............................................
Evaluation of profitability of each segment is
called ......
a. Targeting
b. Market segmentation
c. Positioning
d. Differentiation
Ans - a
.............................................
Procedure of arranging a product to occupy
distinct place in target customers mind is
called ......
a. Market segmentation
b. Targeting
c. Differentiation
d. Positioning
Ans - d
.............................................
According to four Ps of marketing, inventory
and logistics services are classified as ......
a. Place
b. Product
c. Price
d. Promotion
Ans - a
.............................................
What are the three general components of
IRM? i) Data Processing, ii)
Telecommunications, iii) Office automation, iv)
Transaction Processing
a. Only i, ii, and iii
b. Only ii, iii and iv
c. Only i, iii and iv
d. All i, ii, iii, and iv
Ans - a
.............................................
In 'stages of adoption process' , customer
decides to become regular user in ......
a. awareness stage
b. interest stage
c. evaluation stage
d. adoption
Ans - d
.............................................
DAILY QUIZ - JAIIB - 13-04-2017
Adopter group 'laggards' are ......
a. deliberate
b. guided by respect
c. skeptical
d. tradition bound
Ans - d
.............................................
Which of the following steps is/are the
implementation plans involved in MIS? i)
Preparing organizational plans, ii) Planning
of work flow, iii) Training of personnel, iv)
Development of software, v) Acquiring
computer hardware
a. i, ii and iii only
b. i, ii, iii and iv only
c. i, ii, iv and v only
d. All i, ii, iii, iv and v
Ans - d
.............................................
Tendency to which results of innovation are
communicated to others is classified as ......
a. relative advantage
b. divisibility
c. communicability
d. compatibility
Ans - c
.............................................
Breathing, Food, Water, Sex, Sleep,
excretion are ......
a. Safety needs
b. Love Needs
c. Social Needs
d. Physiological needs
Ans - d
.............................................
Which of the following are the inputs of
Marketing Information System? i) Marketing
research data, ii) Marketing intelligence
data, iii) External environment data, iv)
Strategic plan
a. Only i, ii, and iii
b. Only ii, iii and iv
c. Only i, iii and iv
d. All i, ii, iii, and iv
Ans - d
.............................................
AIDAS Model of consumer behaviour was
first proposed by ......
a. E. St. Elmo Lewis
b. E. K. Strong
c. Theodore Levitt
d. Philip Kotler
Ans - a
.............................................
Confidence, respect for others, and respect
by others are the ......
a. Social Needs
b. Esteem Needs
c. Self Actualization Needs
d. Safety Needs
Ans - a
.............................................
...... of needs is a theory in psychology
proposed by Abraham Maslow in his 1943
paper A Theory of Human Motivation in
Psychological Review.
a. Kotlers hierarchy
b. Maslows hierarchy
c. Douglass hierarchy
d. Murrays hierarchy
Ans - b
.............................................
The customer wants friends to see him as
savvy consumer is ...... need
a. Stated needs
b. Real Needs
c. Unstated Needs
d. Secret Needs
Ans - d
.............................................
Which of the following are the main
software components of DSS? i) database
management system (DBMS), ii) model
management system, iii) support tools, iv)
internet
a. Only i, ii, and iii
b. Only ii, iii and iv
c. Only i, iii and iv
d. All i, ii, iii, and iv
Ans - a
.............................................
We are motivated to re-evaluate our
beliefs, attitudes, opinions, or values if our
position at one point in time is not the
same as the position we hold at an earlier
period due to some intervening event,
circumstance, or action. This is referred to
as:
a. Motivation
b. Ego
c. Evoke set
d. Cognitive dissonance
Ans - d
.............................................
...... is the simplest model of consumer
buying behaviour to understand, stressing
how the consumer goes through six key
stages in the acquisition process.
a. Memory
b. Theory of Planned Behaviour
c. Marslow Hierarchy of Need
d. Consumer Acquisition Model
Ans - d
.............................................
DAILY QUIZ - JAIIB - 14-04-2017
Which of the following statements are the
disadvantages of Expert System? i) They
cannot handle inconsistent knowledge, ii)
They cannot apply judgement and
intuition recognized as important
ingredients of problem solving.
a. Only i
b. Only ii
c. Both i and ii
d. None
Ans - c
.............................................
New product pricing strategy through
which companies set lower prices to gain
large market share is classified as
a. optional product pricing
b. skimming pricing
c. penetration pricing
d. captive product pricing
Ans - c
.............................................
Pricing strategy in which prices are set
lower to actual price to trigger short term
sales is classified as
a. promotional pricing
b. short term pricing
c. quick pricing
d. cyclical pricing
Ans - a
.............................................
Pricing strategy in which company divides
location into different sectors and charge
same price for each sector is classified as
a. freight on board origin pricing
b. zone pricing
c. basing point pricing
d. uniform delivered pricing
Ans - b
.............................................
Kind of reduction made to those buyers
who buy large volumes of products is
classified as
a. cash discount
b. seasonal discount
c. functional discount
d. quantity discount
Ans - d
.............................................
The different types of decisions while
decision making in MIS are ...... i)
Programmed decisions, ii) Programmable
decisions, iii) Semi Programmed decisions,
iv) Non Programmed decisions
a. Only i, ii, and iii
b. Only ii, iii and iv
c. Only i, iii and iv
d. All i, ii, iii, and iv
Ans - c
.............................................
Marketing channel that involves no
intermediaries to made their products
available to final buyers is classified as
a. direct channel
b. indirect channel
c. flexible channel
d. static channel
Ans - a
.............................................
Process of managing upstream and
downstream of final goods, flow of raw
materials and information about resellers
and final consumers is classified as
a. marketing logistics network
b. supply chain management
c. delivery network
d. physical distribution network
Ans - b
.............................................
In marketing channels, conflict occurs in
marketing channels working at same level
is classified as
a. steep conflict
b. slope conflict
c. vertical conflict
d. horizontal conflict
Ans - d
.............................................
Network of delivering products to
customer which is composed of
distributors, suppliers and manufacturing
company is classified as
a. supply chain management
b. marketing channels
c. delivery channels
d. value delivery network
Ans - d
.............................................
Which of the following is included in the
Office automation systems? i) Word
processing, ii) Electronic mail, iii) Voice
mail, iv) Electronic calendaring, v) Audio
conferencing
a. i, ii, iii and v only
b. i, ii, iii and iv only
c. i, ii, iv and v only
d. All i, ii, iii, iv and v
Ans - d
.............................................
Social class group which earns through
exceptional ability is best classified as
a. upper middles
b. working class
c. lower uppers
d. upper uppers
Ans - c
.............................................
DAILY QUIZ - JAIIB - 16-04-2017
Bonds may be secured by ...... (i) Floating
charge on assets, (ii) Fixed charge on
assets, (iii) Unsecured bonds are also
issued
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................
Calculating future value of cash flows is
not known as ...... (i) Compounding, (ii)
Discounting, (iii) Hedging
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
Suppose you start a rent-a-car business
and want to buy an automobile. You have
choice of buying the car cash down for
Rs 400,000 or paying Rs. 90,000 a year
for five years for the same car. What will
be your choice, if the opportunity cost is
10% ?
a. Pay cash
b. Take the auto loan
c. Data insufficient to answer
d. None of these
Ans b
Here PV of Rs 90,000 each year for the
next 5 years will be..
PV(90000,10%,5) = { 90000(1.10^5-
a. } / 0.10 1.1^5
= 341171
Now as the Cash down payment is
400,000 greater than the PV of Rs.
90,000 for next 5 years (Rs.341171), you
will prefer taking loan.
........................................................
Calculate the Future Value of Present
Value of Rs. 10000/- after 4 years if the
rate of interest is 10%.
a. 13310
b. 14641
c. 14461
d. 13130
Ans - b
Solution :
FV = P(1+r)n
FV = 10000(1+10/100)^4
= 10000(1.a.^4
= 10000*1.4641
= 14641
.............................................
What is the two year discounting factor
at a discount rate of 10% per year ?
a. 0.826
b. 1.21
c. 1
d. 0.45
Ans a
Solution :
The formula to solve the said sum is 1/
(1+r)^t where r = discount factor and t
= period
Here r = 10 and t = 2
Now do it as this way
= 1/(1+0.10)^2
= 1/ 1.21
= 0.826
.............................................
We expect to receive 1000/- at the end of
each of the next 5 years. Our opportunity
rate is 6 % . What is the value today of
this set of cash flow ?
a. 5000
b. 4212.36
c. 3125.65
d. 4176.45
Ans - b
.............................................
Present value is Rs.20000. Interest rate is
12 % per annum. Interest is compounded
on quarterly basis. What will be the cash
flow at the end of first year?
a. 25210
b. 22150
c. 22510
d. 21520
Ans - c
Solution :
Now there are 4 quarters (as
compounding is quarterly) Interest rate
per quarter is 3 per cent. So,
C4 = PV(1+i/100)^4
= 20000(1.0c.^4
= 20000*1.125509
= 22510

.............................................
Suppose you deposit 2000/- each year
for the next three years into an account
that pays 8%. How much will you have in
3 years?
a. 6492.80
b. 6758.62
c. 6521
d. 6120.52
Ans a
Solution :
This sum is based on the Future value of
annuity at the end of period.
Since we have the equation
FV of annuity = A/r {(1+r)^n-1}
Now FV = 2000/0.08{(1+0.08)^3-1}
i.e Rs 6492.80
........................................................
If rate of interest changes from 8% this
year to 10% next year what is Future
value of Rs 100 in 2 year
a. 116.64
b. 121.00
c. 118.80
d. none of these
Ans - c
Solution
FV=PV*(1+r)*(1+r)
=100*(1.08)*(1.10)
=100*1.188
=118.80
.............................................
Sinking Fund ......
I require Rs.500000 after 5 years. How
much should i invest at the end of each
year, If the rate of interest of
compounding is 10% p.a.
a. 81679
b. 81769
c. 81967
d. 81976
Ans - c
Solution
FV=PV*(1+r)^n-1/r
500000=PV*(1+0.10)^5-1/0.10
500000=PV*(1.61051-1)/0.10
500000=PV*(0.61051/0.10)
PV=500000/0.061051
=81967
.............................................
A person raised a house loan of Rs. 10
lac @ 12% roi repayable in 10 years.
Calculate EMI.
a. 14734
b. 14347
c. 13437
d. 13734
Ans - b
Explanation :
Here,
P = 1000000
R = 12% monthly = 0.01% p.a.
T = 10 Y = 120 months
 EMI = P * R * [(1+R)^T/(1+R)^T-1)]
So,
EMI = 1000000*0.01*(1+0.01)^120
{(1+0.01)^120 1}
= 14347
.............................................
X wants to borrow Rs. 25000
immediately and another Rs. 20000 after
a period of 2 years @ 10% roi. He wants
to pay it in monthly installments for 5
years. Calculate the amount of monthly
payment.
a. 978
b. 987
c. 897
d. 879
Ans - d
Explanation :
Here,
First find PV of 20000 for 2 years @ 10%.
Here, t = 2*12 = 24 months and r = 10%
12 = 0.00833
PV = P / (1+R)^T
So,
PV = 20000 (1+0.0083)^24
= 16388.07
So, total amount = 25000 + 16388.07 =
41388.07
Now,
P = 41388.07,
R = 10% 12 = 0.00833,
T = 5 * 12 = 60 months
EMI = P * R * [(1+R)^T/(1+R)^T-1)]
EMI = (41388.07 * 0.00833) *
{(1.0083)^60 (1.0083)^60 1)}
= 879
.............................................

DAILY QUIZ - JAIIB - 17-04-017

Coupon rate is not the ...... (i) Specific
rate of interest at which a bond is
issued, (ii) Market rate of return of
debenture, (iii) The rate at which a
bond is purchased
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.............................................
What will the ratio of simple interest
earned by certain amount at the
same rate of interest for 8 years and
that for 12 years.
a. 1:2
b. 2:1
c. 2:3
d. 3:2
Ans- d
Explanation:
Let the principal be P and rate be R
then
Ratio = [(PR8/100):(PR12/100)]
=8PR:12PR
=2:3
.............................................
A financier claims to be lending
money at simple interest, But he
includes the interest every six months
for calculating the principal. If he is
charging an interest of 10%, the
effective rate of interest becomes......
a. 10.25%
b. 10%
c. 9.25%
d. 9%
Ans - a
Explanation:
Let the sum is 100.
As financier includes interest every
six months, then we will calculate SI
for 6 months, then again for six
months as below:
SI for first Six Months = (100*10*1)/
(100*2) = Rs. 5
Important: now sum will become
100+5 = 105
SI for last Six Months = (105*10*1)/
(100*2) = Rs. 5.25
So amount at the end of year will be
(100+5+5.25)
= 110.25
Effective rate = 110.25 - 100 = 10.25
.............................................
A person invested Rs. 500000 in a
bank FDR @ 8% p.a. for 1 year. If
interest is compounded on yearly
basis, the amount payable shall
be ......
a. 520000
b. 525000
c. 535000
d. 540000
Ans - d
Solution:
P = 500000
R = 8% yearly
T = 1 yr
Since compounding is annualy and its
only 1-time investment, the formula
to be used:
-----------------------
FV = P * (1+R)^T
-----------------------
So,
FV = 500000 * (1+0.08)^1
= 540000 Ans.
.............................................
The holding period for which interest
rate risk disappears is not known
as ...... (i) Safety of bond, (ii) Duration
of the bond, (iii) Maturity of the bond
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................

A person wants to receive Rs. 1250

every quarter for 5 years @ 12% roi.
How much he should invest now?
a. 18975
b. 18795
c. 18579
d. 18597
Ans - d
Explanation :
Here,
P = 1250
R = 12% quarterly = 3% p.a.
T = 5 yrs = 20 quarters
PV = P / R * [(1+R)^T - 1]/(1+R)^T
So, PV = (1250 0.03) * (1.0320 1)
1.0320
= 18597
.............................................
Ranjit borrowed an amount of Rs.
50000 for 8 years @ 18% roi. What
shall be monthly payment?
a. 986
b. 968
c. 896
d. 869
Ans - a
Explanation :
Here,
P = 50000
R = 18% = 18 % 12 = 0.015%
monthly
T = 8 yrs = 96 months
EMI = P * R * [(1+R)^T/(1+R)^T-1)]
EMI = 50000 * 0.015 * 1.01596
(1.01596 1
= 986
.............................................
Mr. X wants to receive Rs. 40000 p.a.
for 20 years by investing @ 5%. How
much he will have to invest now?
a. 498489
b. 498849
c. 498948
d. 498984
Ans - a
Explanation :
Here,
P = 40000
R = 5% p.a.
T = 20 yrs
PV = P / R * [(1+R)^T - 1]/(1+R)^T
PV = (40000 0.05) * {(1.0520 1)
1.0520}
= 498489
.............................................
Mrs. X wants to receive a fixed
amount for 15 years by investing Rs.
9 lacs @ 9% roi. How much she will
receive annually?
a. 116153
b. 111563
c. 115163
d. 111653
Ans - d
Explanation :
Here,
P = 9 lac
R = 9% p.a.
T = 15 yrs
EMI = P * R * [(1+R)^T/(1+R)^T-1)]
EMI = 900000 * 0.09 * 1.0915
(1.0915 1)
= 111653
.............................................
A sum of Rs. 25, 000 is borrowed over
8 years. What will be the monthly
repayments @ 18% compounded
monthly?
a. 439
b. 493
c. 394
d. 349
Ans - b
Explanation :
Here,
PV = Rs. 25000
T = 8 years = 8 12 = 96 months
R = 18% = 18% 12 = 0.015%
monthly
PV = P / R * [(1+R)^T - 1]/(1+R)^T
25000 = P (1.01596 1) (0.015
1.01596)
25000 = P 50.7017
P = 25000 / 50.7017
= 493
.............................................
How much money will a student owe
at graduation if she borrows Rs. 3000
per year @ 5% interest during each of
her four years of school?
a. 12390
b. 12093
c. 12930
d. 12039
Ans - c
Explanation :
Here,
P = Rs. 300
T = 4 years
R = 5%
FV = P / R * [(1+R)^T - 1]
FV = 3000 (1.054 1) 0.05
= 12930
.............................................
Mr x receive Rs. 100000, as interest
on bond by end of each year for 5
year @ 5% ROI. Calculate present
value of the amount he is to receive
a. 454595
b. 127628
c. 162889
d. 432948
Ans - d
Solution
PV=A/R*(1+r)^n-1/(1+r)^n
= (100000/0.05)*(1+0.05)^5-1/
(1+0.05)^5
=2000000*1.27628156-1/1.27628156
=2000000*0.27628156/1.27628156
=2000000*0.216474
=432948
.............................................
DAILY QUIZ - JAIIB - 18-04-
2017
The intrinsic value of bond is not
the ...... (i) Face value, (ii) Present
value of cash flows in future, (iii)
Market value
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.............................................
Mr. X borrowed Rs. 65600 for 2
years at 5% p.a., to be returned in
2 equal installments. What is the
amount of installment?
a. 38520
b. 38250
c. 35820
d. 35280
Ans - d
Solution
Here,
P = 65600
R = 5% p.a.
T = 2 yrs
EMI = P * R * [(1+R)^T/(1+R)^T-
1)]
=65600*0.05((1+.05)^2/
(1+.05)^2-1
=3280(1.1025)/1.1025-1)
=3280(1.1025/0.1025)
=3280*10.756097
=35279.99
=35280
.............................................
Q received a sum of rs. 20 lac on
sale of a property which he has
invested in term deposit wit a
bank @10% interest for 10 year
with the provision that he shall get
fixed amount every 10 years how
much amount shall receive ......
a. Rs. 325491
b. Rs. 325941
c. Rs, 324480
d. Rs. 323490
Ans - a
Solution
EMI=P*R*((1+r)^T)/(1+r)^T-1
=2000000*0.10*(1+10)^10/
(1+r)^10-1
=200000*2.593742/2.593742-1
=200000*2.593742/1.593742
=200000*1.627454
=325490.8
=325491
.............................................
Ramesh needs 10,00,000 to meet
the expenses on the higher study
of his son at the end of 10 years
from now. If the interest rates are
assumed at 12%, how much
amount he should deposit
annually.
a. 56969
b. 55980
c. 56589
d. 56984
Ans - d
Solution:
A=FV(r(1+r)^n-1)
=1000000*0.12/1.12^10-1
=1000000*0.12/3.105848-1
=120000*0.12/2.105848
=120000/2.105848
=56984.169
=56984.17
.............................................
Q needs 10,00,000 to meet the
expenses on the study of his son
at the end of 20 years from now. If
the interest rates are assumed at
12%, how much amount he should
deposit annually.
a. 13788
b. 13878
c. 18378
d. 18738
Ans - b
Solution:
A=FV(r(1+r)^n-1)
=1000000*0.12/1.12^20-1
=120000*0.12/9.646293-1
=120000*0.12/8.646293
=120000/8.646293
=13878.78
.............................................
An Inflation rate of 10% and an
expected nominal cash flow of Rs.
11,00,000/- lac, the value of the
real cash flow?
a. 990000
b. 1000000
c. 1100000
d. 1210000
Ans - b
Solution
Real Cash flow= Nominal Cash
flow/(1+Inflation Rate)
1100000/1+0.10
=11/1.10
=10,00,000
.............................................
Effective Interest Rate of 10% of
annual interest and compounding
semi-annually
a. 10 %
b. 10.25 %
c. 10.5 %
d. 10.75 %
Ans - b
Effective Interest Rate
=(1+periodic Interest Rate)^n-1
=(1+10/2)^2-1
=(1.1025)-1
=(0.1025
=10.25%
.............................................
An amount of money is deposited
in a Bank that gives an interest of
5%, compounded annually, If the
amount got after six year is Rs.
5000, then what is the principal
amount of money that was
deposited initially?
a. 3317
b. 3371
c. 3713
d. 3731
Ans - d
Solution
Future cash flow= Rs. 5000
Interest rate=5%=0.05
Time period = 6 years
Present Value= Future value/
(1+r)^n
=5000/(1+0.05)^6
=5000/1.3400956
=3731.07
.............................................
You want to buy an ordinary
annuaty that will pay you Rs. 4000
a year for next 20 years. you
expect annual interest rate wil be
8 percent over that time period.
the maximum price you would be
willing to pay for the annuity is
closest to ......
a. Rs. 32000
b. Rs. 39272
c. Rs. 40000
d. Rs. 80000
Ans - b
Solution
A/r*(1+r)^n-1)/(1+r)^n
4000/.08*((1.08)^20-1)/1.08)20
50000*4.66095-1/4.66095
=50000*3.66095/4.66095
=50000*0.78545
=39272.57
=39272
.............................................
You want to buy an ordinary
annuity that will pay you Rs. 4000
a year for next 20 years. you
expect annual interest rate will be
8 percent over that time period.
the maximum price you would be
willing to pay for the annuity is
closest to ......
a. Rs. 32000
b. Rs. 39272
c. Rs. 40000
d. Rs. 80000
Ans - b
Solution
A/r*(1+r)^n-1)/(1+r)^n
4000/.08*((1.08)^20-1)/1.08)20
50000*4.66095-1/4.66095
=50000*3.66095/4.66095
=50000*0.78545
=39272.57
=39272
.............................................
You recently earned a 13% return
on an investment during the
preceding year. if the inflation rate
during that period is 8% what wad
your real return during that period.
a. 5%
b. 4.63%
c. 4.42%
d. 6%
Ans - b
Solution
Real rate of return=(r1+1/r2+1)-1
=( (1.13/1.08) -1)
=0.04629
=4.63%
.............................................
For a project, the difference
between the sum of the present
value of cash flows of the project
and cash outlays for financing the
project is not its ...... (i) Future
value, (ii) Internal rate Is return ,
(iii) Net present value
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.............................................