JAIIB Exam 2025 – AFM Important Questions MCQs Quiz-18

02/04/2025

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JAIIB Exam 2025 AFM Important Questions MCQs Quiz-18

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB AFM MCQ-based quizzes on a regular basis. You can attempt the quizzes regularly to prepare for the upcoming JAIIB exam. The quizzes will be provided module-wise and unit-wise. You can attempt the JAIIB AFM quizzes from the links below and improve your preparation by practicing regularly. These quizzes will help you boost your score in the JAIIB exam and guide you to clear the exam on your first attempt.

Q.1. What is the most appropriate definition of Computerised Accounting?
A. A system that records transactions manually and prepares financial statements.
B. A system that captures business transactions, prepares financial statements, and generates reports using a computer.
C. A system that only generates financial reports but does not record transactions.
D. A system that performs accounting calculations without preparing financial statements.

Q.2 Which of the following is NOT a key feature of Computerised Accounting?
A. Speed – Computers process transactions faster than manual methods.
B. Accuracy – Computers eliminate errors once correctly programmed.
C. Limited Report Generation – Computerised systems cannot generate multiple reports from the same data.
D. Economy – Computerised accounting is more cost-effective than manual accounting due to automation.

Q 3 Which of the following correctly defines a “Data File” in computerised accounting?
A. A collection of individual data points with no specific arrangement.
B. A group of data items related to a single object of data processing.
C. A compilation of related data records stored in a structured manner.
D. A system that processes data and produces accounting outputs.

Q.4 What is a key challenge in a computerised accounting system compared to a manual system?
A. The visibility of data storage makes tracking every transaction easier.
B. The cost of preparing additional reports is higher than in a manual system.
C. The integrity of financial data is not a concern in a computerised system.
D. The audit trail is harder to establish since data is stored electronically and not physically visible.

Q.5 Which of the following is NOT an advantage of computerised accounting?
A. It ensures high speed, accuracy, and low operational costs.
B. It allows multiple reports to be generated from the same data.
C. It eliminates the need for any human supervision in accounting.
D. It enables automatic updating of all records from a single entry.

Q.6 Which of the following is a major disadvantage of computerised accounting?
A. It requires special programs and trained professionals, increasing costs.
B. It completely eliminates the risk of data loss.
C. It does not require regular backups.
D. It removes the need for human supervision

Q.7 What was one of the major reasons for banks shifting from a decentralised to a centralised infrastructure?
A. The need to maintain separate databases for each branch.
B. The high cost and inefficiencies of managing multiple branchspecific servers.
C. The requirement for more physical presence of technology representatives at every branch.
D. The inability of banks to provide 24/7 customer service

Q.8 Which of the following is NOT a core component of a core banking system?
A. Core Bank Product Build
B. Core Bank Customer Management
C. Core Bank Marketing and Advertising
D. Core Bank Payments

Q.9 What is the role of the maker-checker functionality in a core banking system?
A. To allow tellers to complete transactions independently
B. To ensure supervisory approval for transactions exceeding teller limits
C. To generate customer reports automatically
D. To prevent any teller from initiating a transaction

Q.10 Which transaction processing method is primarily used for updating daily interest and generating statistical reports in core banking systems?
A. Primary update method
B. Secondary update method
C. Batch processing
D. Online processing

Q.11 In a core banking technical architecture, what is the primary function of the Application Layer?
A. Acting as an interface between the front-end and operating system.
B. Managing system triggers, parameters, and environment settings.
C. Handling interactions with the database using call levels and language.
D. Connecting the branch servers to the central server (Hub).

Q.12 Which of the following best describes a Neo-Bank?
A) A bank that operates both physical branches and digital services
B) A fully digital bank that operates without physical branches
C) A government-regulated central bank
D) A traditional bank with ATM services but no online banking

Q.13 Which of the following is a key feature of Omni-Channel Banking?
A) Providing separate services across different banking channels
B) Synchronizing customer data in real time across all banking channels
C) Limiting banking services to digital platforms only
D) Restricting customer transactions to specific channels

Q.14 Which of the following is the best practice for password security in a banking environment?
A) Writing passwords in a notebook for easy access
B) Sharing passwords with IT staff for troubleshooting purposes
C) Using simple passwords to remember them easily
D) Changing passwords at least once in 30 days or immediately if compromised

Q.15 Which of the following is NOT a recommended security practice for desktop and laptop users in a banking environment?
A) Enabling automatic antivirus updates and firewalls
B) Installing only authorized software vetted by the competent authority
C) Connecting personal routers or dongles to access external networks
D) Logging out of all applications before leaving the desktop unattended