JAIIB Exam 2025 – IE&IFS Important Questions MCQs Quiz-28

27/03/2025

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JAIIB Exam 2025 IE&IFS Important Questions MCQs Quiz-28

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB IE&IFS 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 IE&IFS 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 Which of the following is NOT a correct feature or implication regarding infrastructure as described?
A) Infrastructure projects generally require large investments and have a long gestation period.
B) Infrastructure typically exhibits significant economies of scale, often resulting in natural monopolies.
C) Competitive market systems, without regulation, are fully capable of providing optimal levels of infrastructure services.
D) Infrastructure development creates positive externalities that benefit sectors such as agriculture and industry.

Q.2 Why does infrastructure finance typically have longer maturities, often ranging between 5 to 40 years
A) Because infrastructure projects involve short-term returns and low capital intensity.
B) Because the construction period can be long, and the underlying assets created often have a long useful life.
C) Because infrastructure projects face minimal regulatory oversight, allowing for quicker project completion.
D) Because infrastructure assets depreciate rapidly, requiring short repayment periods.

Q 3 Which of the following is NOT typically considered a major risk associated with infrastructure investment?
A) Demand uncertainty that may affect the usage of the infrastructure asset.
B) Environmental and regulatory surprises that can delay or halt projects.
C) Technological obsolescence in sectors like telecommunications.
D) Guaranteed high returns due to government subsidies and monopoly power.

Q.4 Why are real returns on infrastructure investments typically low but positive over the long term?
A) Because infrastructure projects operate in highly speculative markets with volatile pricing.
B) Because high returns would negatively impact the broader economy due to the essential nature of infrastructure services.
C) Because governments prohibit infrastructure projects from generating any profit to protect consumers.
D) Because inflation-adjusted revenue streams are unrelated to the performance of infrastructure assets.

Q.5 Which of the following statements regarding Development Finance Institutions (DFIs) like NaBFID is correct?
A) DFIs primarily accept deposits from the public and provide short-term commercial loans to businesses.
B) DFIs are created to provide long-term financing for sectors where risk levels are acceptable to commercial banks.
C) DFIs are specialized institutions set up to provide long-term, non-recourse infrastructure financing and are often supported by government guarantees.
D) DFIs rely solely on government funding and do not access capital markets or multilateral institutions.

Q.6 Regarding the ownership structure of NaBFID, which of the following statements is correct?
A) NaBFID will initially be privately owned, with the government holding no stake.
B) The central government will initially own 100% of NaBFID, which can later be reduced to as low as 26%.
C) Only domestic banks and financial institutions are allowed to hold shares in NaBFID.
D) NaBFID’s authorised share capital is capped at Rs 10,000 crore, as per the act.

Q.7 Which of the following is NOT a stated function of NaBFID as per its mandate?
A) Facilitating the development of the bond, loan, and derivatives markets for infrastructure financing.
B) Extending loans and advances directly for infrastructure projects.
C) Accepting deposits from the public to provide retail banking services across India.
D) Attracting private sector and institutional investment for infrastructure projects.

Q.8 Which of the following is NOT a source of funds for NaBFID as per its mandate?
A) Borrowing from the Reserve Bank of India (RBI) and scheduled commercial banks.
B) Issuing bonds and debentures in Indian Rupees and foreign currencies.
C) Accepting retail deposits from individuals to fund infrastructure projects.
D) Securing funds from multilateral institutions such as the World Bank and Asian Development Bank.

Q.9 Which of the following statements about the governance structure of NaBFID is correct?
A) The Chairperson of NaBFID is directly appointed by RBI without any consultation with the central government.
B) Independent directors of NaBFID are appointed by RBI based on its internal policies.
C) The Managing Director and Deputy Managing Directors are recommended by a body constituted by the central government.
D) All directors on NaBFID’s Board are elected solely by shareholders.

Q.10 Which of the following is NOT a form of support that the central government provides to NaBFID?
A) Providing Rs 5,000 crore in grants by the end of the first financial year.
B) Offering guarantees at concessional rates for foreign borrowing, capped at 0.1%.
C) Reimbursing costs related to foreign exchange fluctuations on foreign currency borrowings.
D) Guaranteeing that NaBFID will earn a fixed minimum return of 5% on all infrastructure projects.

Q.11 What is the primary role of the India Debt Resolution Company Ltd (IDRCL) in the “Bad Bank” structure?
A) To provide capital to stressed banks for retail banking activities.
B) To aggregate and acquire stressed assets from banks.
C) To manage and resolve stressed assets by engaging market professionals and turnaround experts.
D) To function as a regulatory authority overseeing banks’ nonperforming assets (NPAs).

Q.12 Which of the following correctly describes the ownership structure of NARCL and IDRCL?
A) Public sector banks hold 51% of equity in both NARCL and IDRCL.
B) Public sector banks hold 51% of equity in NARCL, while holding 49% in IDRCL with the remaining held by private sector lenders.
C) Private sector lenders hold 100% equity in both NARCL and IDRCL.
D) NARCL is fully owned by the Reserve Bank of India, and IDRCL is fully government-owned.

Q.13 What is the minimum cut-off amount for loans to be eligible for transfer to NARCL?
A) Rs 100 crore
B) Rs 500 crore
C) Rs 1,000 crore
D) Rs 2,000 crore

Q.14 How will the payment structure for the sale of bad loans to NARCL typically be arranged?
A. 15% cash upfront and 85% in the form of Security Receipts (SRs)
B. 50% cash upfront and 50% in equity shares of NARCL
C. 100% cash upfront with no Security Receipts issued
D. 85% cash upfront and 15% in government bonds

Q.15 What is the primary focus of the EASE (Ease of Access and Service Excellence) reform agenda introduced for Public Sector Banks (PSBs)?
A) To privatize all public sector banks by 2025.
B) To strengthen PSBs through clean lending practices, better customer service, and improved governance.
C) To focus only on recapitalizing banks without changing operational processes.
D) To mandate PSBs to exclusively serve rural areas.

Q.16. EASE 1.0, the first edition in the series of Enhanced Access and Service Excellence reforms for Public Sector Banks (PSBs), focused on six core themes. Which of the following correctly pairs a theme of EASE 1.0 with its intended objective?
A. Customer Responsiveness – Pro-active delivery of credit
B. Responsible Banking – Financial stability and improved governance
C. Deepening Financial Inclusion – Development of HR personnel in PSBs
D. PSBs as Udyamimitras – Ease for customer comfort

Q.17 Which of the following was NOT a key reform introduced under EASE 2.0 to strengthen Public Sector Banks (PSBs) during its implementation in 2019?
A. Implementation of comprehensive Loan Management Systems (LMS) for faster loan processing and tracking
B. Introduction of Early Warning Signals (EWS) and specialized monitoring for stressed assets
C. Establishment of outcome-centric HR systems and improved governance at the Board level
D. Complete privatization of select Public Sector Banks to reduce fiscal burden on the government

Q.18 EASE 3.0 was launched to accelerate customer-centric digital transformation in Public Sector Banks (PSBs). Which of the following best describes a key focus area of EASE 3.0?
A. Promoting branch-only banking and reducing digital dependency
B. Leveraging digital, analytics, AI, and FinTech partnerships for enhanced customer service and risk management
C. Implementing Early Warning Signals (EWS) for stressed assets resolution, as the primary focus
D. Complete transition of PSBs into non-banking financial companies (NBFCs)

Q.19 Which of the following is a new theme introduced under EASE 4.0 to further customer-centric digital transformation and strengthen collaboration within the financial ecosystem?
A. Smart Lending for Aspiring India
B. New Age 24×7 Banking with resilient technology
C. Tech-enabled ease of banking
D. Hardwiring sound banking through IT systems

Q.20 Which of the following statements correctly reflects a key feature of the EASE 5.0 reforms agenda launched in June 2022?
A. EASE 5.0 solely focuses on risk mitigation strategies for Public Sector Banks (PSBs) without considering customer experience.
B. EASE 5.0 mandates PSBs to exit digital banking and return to branch-centric operations.
C. EASE 5.0 emphasizes digital customer experience, integrated and inclusive banking, and creating bank-specific 3- year strategic roadmaps.
D. EASE 5.0 only applies to private sector banks with no relevance for PSBs.

Answer:

Q1: C
Q2: B
Q3: D
Q4: B
Q5: C
Q6: B
Q7: C
Q8: C
Q9: C
Q10: D
Q11: C
Q12: B
Q13: B
Q14: A
Q15: B
Q16: B
Q17: D
Q18: B
Q19: B
Q20: C