JAIIB Exam 2025 – PPB Important Questions MCQs Quiz-26

12/03/2025

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JAIIB Exam 2025 PPB Important Questions MCQs Quiz-26

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB PPB 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 PPB 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.

1. Why documents are necessary to be procured by bank?
a) To identify the borrower
b) To have a written evidence of the transactions of lending made by the bank
c) To create a valid and effective security in favour of the bank and to create charge on security
d) All of the above

2. Which statement is incorrect regarding Demand Promissory Note?
a) Where a fixed period for the repayment of loan is not specified, the bankers take a Demand Promissory Note (DPN).
b) In DPN, the borrower makes a promise to the banker to repay the loan amount on demand with agreed rate of interest.
c) It must be ensured that the DPN is duly filled in and stamped after the borrower signs it.
d) The rate of stamp duty on DPN is uniform throughout India.

3. ________ are not in the nature of promise or agreement. These are obtained to specify clearly the intention of the borrower.
a) Guarantees
b) Forms
c) Title deed
d) Term loan agreement

4. As per Sec. 18 of Indian Stamp Act, every instrument, other than a bill of exchange and promissory note, which are chargeable with duty and executed out of India may be stamped within ____ after it has been first received in India.
a) one month
b) two months
c) three months
d) six months

5. As per the Stamp Act, a document executed in India shall be stamped ________________.
(a) only before execution
(b) at any time, but before filing suit
(c) before or at the time of execution
(d) within 45 days after execution

6. What is incorrect regarding filling of documents?
a) The entire document shall be filled with same ink, in same handwriting by same person in single sitting.
b) It is important that blank fields should not be left unfilled, nor any alternatives should be left without deleting non-applicable ones before execution.
c) Any subsequent filling of Document by bank after execution without the consent of the executant will not invalidate it.
d) The document should be completed as far as possible without any alteration, overwriting or cutting.

7. What is incorrect regarding execution of documents?
a) It should be ensured that the signature in the document tallies with the signature as appearing in the application for the loan and also with the specimen signature.
b) bankers take the signature of the executant in all the pages of the documents.
c) In case the document contains any alteration or cutting, it must be authenticated with the full signature of the executant/s.
d) The documents need not to be executed in the presence of bank officials

8. How Limitation period can be extended?
a) By obtaining acknowledgement of debt in writing from the borrower before expiry of the prescribed period of limitation
b) when borrower or his duly authorized agent makes part re-payment of the loan, before expiry of the documents
c) Both the above
d) None of the above

9. Which is correct regarding safe keeping of documents?
a) Documents should be kept in fireproof and pilfer-proof cabinets/ strong rooms.
b) Documents are kept in personal custody of an authorised official.
c) On change of incumbency, proper handing over and taking over of these documents is done.
d) All of the above

10. When time barred debts are to be revived, the recourse may be to _________
a) Sec. 25(3) of the Contract Act, 1872
b) Sec. 20(1) of the Contract Act, 1872
c) Sec. 30(3) of the Contract Act, 1872
d) Sec. 55(2) of the Contract Act, 1872