JAIIB Exam 2025 – PPB Important Questions MCQs Quiz-30

26/03/2025

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JAIIB Exam 2025 PPB Important Questions MCQs Quiz-30

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.Surety is also known as the _____________.
a) Indemnifier
b) Bailor
c) Guarantor
d) Bailee

2. Liability of the surety is ____________that of the principal debtor.
a) co-extensive with
b) primary to
c) secondary to
d) None of the above

3. In case the company on whose behalf the invoked bank guarantee was issued is in liquidation, the bank _____________.
(a) must make payment to the liquidator and not to the beneficiary
(b) must deposit the amount in the Court to avoid any controversy
(c) must pay the beneficiary
(d) need not pay since the bank guarantee lapses on the applicant company being liquidated

4. The person in whose favour a bank guarantee is issued is called a/an _____________.
(a) Issuer
(b)Banker
(c) Indemnifier
(d)beneficiary

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

6. In bank guarantees the bank makes payment on _____________.
(a) being convinced that the beneficiary has incurred loss
(b) being sued by the beneficiary
(c) the guarantee being invoked after seeking concurrence of the debtor
(d) merely on demand by the beneficiary

7. A guarantee which extends to a series of transactions is called ________
a) Nominal guarantee
b) Continuing guarantee
c) Serial guarantee
d) One–time guarantee

8. _____ensures timely payment of the instalments to the seller/exporter, failing which, the guarantee can be invoked and payment received.
a) Financial guarantee
b) Performance guarantee
c) Deferred payment guarantee
d) Continuing guarantee

9. What are the conditions to be followed in invocation of guarantee?
(a) The invocation is within validity period.
(b) The invocation amount is not more than the guaranteed amount.
(c) The authority invoking the guarantee is competent or empowered to invoke the guarantee.
(d) All of the above

10. It is always prudent for a banker to secure it to cover himself in case it is enforced. This is done by obtaining a _______ executed by the customer in favour of the bank.
a) Bond
b) Security
c) Indemnity
d) None of the above