Check Your Progress JAIIB-02

Q1. The ability of a commercial bank to increase its loans and investment depends on its:

A.      Holding of Government securities

B.      Profitability

C.      Excess cash/liquidity position

D.      Outstanding loans and investments

Q2. Who manages the Rural Infrastructure Development Fund (RIDF)

A.      RBI

B.      NABARD

C.      Rural Development Ministry

D.      SIDBI

Q3. Basel II norm are associated with –

A.      Banking sector

B.      Insurance sector

C.      Share markets

D.      All of the above

Q4. Disadvantages to Credit Card holders include:

A.      Over spending ending in Debt Trap

B.      Frauds due to loss or theft of cards

C.      Forged signature

D.      All the above

Q5. The bank which pays the merchant for the transaction is called as

A.      Issuer bank

B.      Clearance bank

C.      Acquirer bank

D.      None of the above

Q6. The nature of charge created on the intangible securities like ‘accounts receivable’ is

A.      Assignment

B.      Mortgage

C.      Lien

D.      None of the above

Q7. Banks advance loans against the security of assets and the nature of charge created while doing so is

A.      Pledge

B.      Hypothecation

C.      Mortgage

D.      Assignment

Q8. In the case of pledge and hypothecation, the title in the goods is………..to the bank making in advance:

A.      Transferred

B.      Not Transferred

C.      Both

D.      None

Q9. Bank finance Book Debts by –

A.      Factoring

B.      Forfaiting

C.      Overdraft and Cash Credit against Hypothecation of book debts

D.      Cash Credit against Pledge of book debts

 Q10. The possession of the mortgage property is normally given to the mortgage in case of –

A.      Simple mortgage

B.      English mortgage

C.      Usufructuary mortgage

D.      None of above

We provide answer in our next post.