JAIIB Crash Course May 2025 PPB Quiz-2

06/05/2025

Table of Contents

JAIIB Crash Course May 2025 IE and IFS Quiz-2

JAIIB CAIIB Course Quiz – May 2025: The JAIIB exam for May 2025, conducted by IIBF, is fast approaching. To support your preparation, we are providing regular MCQ-based quizzes specifically designed for the JAIIB CAIIB syllabus. These quizzes are structured module-wise and unit-wise to help you cover the entire syllabus systematically. Practicing these quizzes consistently will strengthen your concepts, improve accuracy, and increase your chances of clearing the exam on your first attempt.

1. Usance bills are also known as __________, under Bill finance.
(a) Sight bill
(b) Bills payable after sight
(c) Bills payable before sight
(d) None of these

2. SARFASEI stands for __________.
(a) Securitization and Rebuilding of Finance & Assets and Execution of Security Interest
(b) Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest
(c) Securitization and Renovation of Fiscal Assets and Enforcement of Safe Interest
(d) None of these

3. Choose the correct statement.
(a) The provisioning coverage ratio indicates the extent of funds a bank has kept aside to cover loan losses
(b) The provisioning coverage ratio indicates the extent of funds a bank has kept aside to pay payments to its employees
(c) The provisioning coverage ratio indicates the extent of funds a bank has kept aside as a provision to cover indemnities due to natural calamities
(d) All of the above.

4. Which of the following is correct?
(a) The maximum exposure of banks to each of leasing, hire purchase and factoring services in relation to total advances is 2.5%
(b) The maximum exposure of banks to each of leasing, hire purchase and factoring services in relation to total advances is 5%
(c) The maximum exposure of banks to each of leasing, hire purchase and factoring services in relation to total advances is 7.5%
(d) The maximum exposure of banks to each of leasing, hire purchase and factoring services in relation to total advances is 10%

5. ____________ is a bill which is supported or accompanied by a document of title to goods.
(a) clean Bill
(b) foreign Bill
(c) inland Bill
(d) Documentary Bill

6. Choose the correct statement.
(a) Only one member from a family can become a part of a Self-Help Group.
(b) Only two members from a family can become a part of a Self-Help Group.
(c) Only three members from a family can become a part of a Self-Help Group.
(d) Only four members from a family can become a part of a Self-Help Group.

7. _______ is appointed by the court to manage the property of the deceased who had died without leaving any will.
(a) Executor
(b) Testator
(c) Administrator
(d) Trustee

8. Choose the correct statement.
(a) The percentage target for Priority Sector Lending for domestic scheduled commercial banks as per RBI guidelines is 40%.
(b) The percentage target for Priority Sector Lending for domestic scheduled commercial banks as per RBI guidelines is 50%.
(c) The percentage target for Priority Sector Lending for domestic scheduled commercial banks as per RBI guidelines is 60%.
(d) The percentage target for Priority Sector Lending for domestic scheduled commercial banks as per RBI guidelines is 70%.

9. Payment Banks can accept demand deposits up to maximum balance of ______ per customer.
(a) Rs. 1 lakh
(b) Rs. 2 lakhs
(c) Rs. 5 lakhs
(d) Rs. 10 lakhs

10. In a contract of indemnity, the indemnifier is required to make good the loss as soon as it occurs. Which of the following is true regarding a contract of guarantee?
(a) The surety is primarily liable
(b) The surety is required to make good the loss as soon as it occurs
(c) The principal debtor is primarily liable for the loss
(d) The creditor is required to make good the loss as soon as it occurs

11. ______ refers to a loan that has a payment overdue for 31 to 60 days.
(a) SMA – 0
(b) SMA – 1
(c) SMA – 2
(d) NPA

12. When banks give home loans, the nature of charge created is _________.
(a) Hypothecation
(b) Mortgage
(c) Assignment
(d) Pledge

13. In Small Enterprises Investment in plant and machinery or equipment is up to _________.
(a) Rs. 10 crore
(b) Rs. 20 crore
(c) Rs. 25 crore
(d) Rs. 50 crore

14. Farmers with landholding of up to ______ are categorized as Marginal Farmers.
(a) 1 hectare
(b) 2 hectares
(c) 5 acres
(d) 3 acres

15. Which statement is true for consumer loans?
(a) For purchase of consumer durables and white goods
(b) Hypothecation of the article purchased out of the bank loan.
(c) Normally a margin of 10–20% is stipulated.
(d) All of the above

16. There should be two persons to open a partnership account in a bank. In which of the following cases an account can be opened?
(a) X aged 25 years Y aged 17 years
(b) X aged 25 years Y aged 21 years
(c) X aged 17 years and Y aged 16 years
(d) Ku. Shubha aged 30 years and Ku. Rachna aged 16 years (daughter of Ku. Shubha)

17. Which of the statements is false regarding Certificate of deposit?
(a) CDs can be issued by the SCBs, RRBs, and SFBs to all persons resident in India.
(b) They are issued in dematerialized form in denominations of Rs. 1 lakh, with minimum Rs. 1 lakh.
(c) Tenor of CDs should be minimum 7 days and maximum 1 year
(d) CD’s may be issued at discounted value or with a coupon for interest.

18. __________ is the restriction placed on banks regarding guarantees for inter-company deposits/ loans with NBFCs.
(a) Banks can execute guarantees for inter-company deposits/ loans but only for certain types of loans
(b) Banks can execute guarantees for inter-company deposits/ loans but only for certain types of NBFCs
(c) Banks cannot execute guarantees covering inter-company deposits/ loans
(d) Banks can execute guarantees covering inter-company deposits/ loans

19. ____________ type of credit facility is eligible for cover under the CGTMSE schemes.
(a) Facilities granted to micro-enterprises under MUDRA Guarantee Scheme
(b) Facilities covered by DICGC or RBI schemes
(c) Facilities covered by any other insurance or guarantee
(d) None of the above

20. When can a continuing guarantee be revoked by the guarantor?
(a) Yes, it can be revoked only with the consent of the creditor
(b) Yes, it can be revoked only if the principal debtor pays off the debt
(c) No, it cannot be revoked
(d) Yes, it can be revoked by notice to the creditor

21. The valuation for gold jewellery accepted as collateral for loans is ________.
(a) Average of the closing price of 22-carat gold for the preceding 1 week.
(b) Average of the closing price of 22-carat gold for the preceding 30 days
(c) Average of the closing price of 24-carat gold for the preceding 30 days
(d) None of these

22.
Statement I: The maximum loan amount under PM SVANidhi 2.0 is Rs. 1,00,000.
Statement II: PM SVANidhi 2.0 provides interest subsidy of 9% p.a on timely repayment of loan
Statement III: The scheme incentivise digital transactions by the street vendors through cash back.
(a) Only statement I is correct.
(b) Statements III is correct.
(c) Statements II and III are correct.
(d) All statements are correct.

23. Where do banks have to invest if they fail to achieve PSL targets?
(a) They are required to contribute to RIDF
(b) They may invest in PSLCs
(c) Any of the above
(d) None of the above

24.
Statement I: Asset Reconstruction Companies (ARCs) help in resolving non-performing assets (NPAs) of banks and financial institutions.
Statement II: ARCs purchase bad loans from banks at a discounted rate and try to recover the amount from the defaulting borrowers.
Statement III: ARCs are not allowed to undertake any activity other than asset reconstruction and are regulated by RBI.
(a) Statement I and II are correct, but Statement III is incorrect.
(b) Statement I and III are correct, but Statement II is incorrect.
(c) Statement II and III are correct, but Statement I is incorrect.
(d) All statements are correct.

25.
Statement I: The minimum requirement of microfinance loans for NBFC-MFIs also stands revised to 75 per cent of the total assets.
Statement II: NBFC-MFIs should not charge any processing fee or pre-payment penalty on loans.
Statement III: NBFC-MFIs minimum NOF requirement is Rs. 5 crore.
(a) Only statement I is true
(b) Both statements I and II are true
(c) Both statements II and III are true
(d) All statements are true

26. What is the Insolvency and Bankruptcy Code, 2016?
(i) A set of provisions that covers insolvency and liquidation of corporate debtors.
(ii) A law that governs insolvency and bankruptcy of individuals and partnership firms.
(a) Only (i)
(b) Only (ii)
(c) Both (i) & (ii)
(d) None of these

27. __________ is a category of Priority Sector Advances.
(a) Agriculture
(b) MSME
(c) Small and Marginal Farmers
(d) All of these

28. The safety arrangement that need to be put in place at bank branches and ATMs are _________.
(i) Security guards related measures
(ii) Fire protection related measures
(a) Only (i)
(b) Only (ii)
(c) Both (i) & (ii)
(d) None of these

29. LLP Must obtain a ____________.
(a) UPIN
(b) APIN
(c) CPIN
(d) DPIN

30. Which of the following is not mandatory to disclose by the banks?
(i) Notes to accounts of the financial statements
(ii) Statement of Trial Balance
(a) Only (i)
(b) Only (ii)
(c) Both (i) & (ii)
(d) None of these

Answer:

Q1: B
Q2: B
Q3: A
Q4: D
Q5: D
Q6: A
Q7: C
Q8: A
Q9: B
Q10: C
Q11: B
Q12: B
Q13: C
Q14: A
Q15: D
Q16: B
Q17: B
Q18: C
Q19: D
Q20: D
Q21: B
Q22: B
Q23: C
Q24: D
Q25: D
Q26: C
Q27: D
Q28: C
Q29: D
Q30: B