JAIIB Exam 2025 – PPB Important Questions MCQs Quiz-29

22/03/2025

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JAIIB Exam 2025 PPB Important Questions MCQs Quiz-29

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. A person promising to save another from loss is called
_____________.
(a) Indemnified
(b) Indemnifier
(c) collecting Banker
(d)paying banker

2. There are ________________ parties to a contract of
indemnity.
(a) 1
(b)2
(c) 3
(d) 4

3. Indemnifier’s liability in a contract of indemnity is
____________.
(a) Primary
(b) Secondary
(c) Collateral
(d) discretionary

4. Which of the following statements is/are true?
(i) There are three parties to a contract of indemnity, the indemnifier, the indemnity holder and the person on whose behalf the indemnity is given.
(ii) Indemnifier’s liability occurs only if the indemnity holder suffers loss.
(iii) Customers as a matter of right and without an indemnity can obtain duplicate of demand drafts or travellers’ cheques.
(iv) Indemnities are required by banks purely as a formality and does not serve any other purpose.
a. (i), (ii) and (iii)
b. (ii) only
c. (ii) and (iii)
d. (ii) and (iv)

5.Which statement is false?
(a) In a contract of indemnity there are two parties, whereas in a contract of guarantee there are three parties
(b) In a contract of indemnity, the indemnifier has primary liability whereas in a contract of guarantee, the surety’s liability is primary
(c) An indemnity is for reimbursement of a loss whereas a guarantee is for the security of the creditor.
(d) There are only one contract in the contract of indemnity However, in a contract of guarantee there are at least three contracts

6. What are the rights of indemnity holder?
a) Right to recover all damages which he may be compelled to pay in a suit.
b) Right to recover all costs which he may be compelled to pay in any such suit
c) Right to sue for specific performance, if he has incurred absolute liability and the contract covers such liability.
d) All of the above

7. _______of the Indian Contract Act, 1872 defines contract of indemnity
a) Section 130
b) Section 124
c) Section 150
d) Section 220

8. The essence of any contract of indemnity is that _______
a) the assured must prove a loss.
b) the assured may suffer a loss.
c) the assured may not prove a loss.
d) None of the above

9. In which case indemnity is taken by bank from the customer?
a) Opening Fixed deposit account
b) Issuing duplicate FD receipt
c) Opening a locker
d) Issuance of demand draft

10. Indemnity holder is entitled to recover from the indemnifier all the sums that he may have paid pursuant to a compromise in a suit, provided _________
(a) it was not contrary to the orders of the indemnifier
(b) it was prudent to be made even in the absence of any contract of indemnity
(c) it was authorised by the indemnifier
(d) All of the above