JAIIB Exam 2025 – PPB Important Questions MCQs Quiz-32

03/04/2025

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JAIIB Exam 2025 PPB Important Questions MCQs Quiz-32

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. The guarantee of the bank, assuring the exporter of the timely payment of the instalments is called ________.
a) Finance guarantee
b) Performance guarantee
c) Deferred Payment Guarantee
d) None of the above

2. In deferred payment guarantee, which terms are mandatory?
a) there is supply of goods by the seller to the buyer, and the seller agrees to postpone the payment of the price
b) the payment schedule of both the instalment and the interest
c) unconditional and irrevocable assurance of the bank that it would make payments on the invocation of the guarantee.
d) All of the above

3. Which statements are correct in DPG in respect of method of Payment?
(a) Advance payment of 10% to 15% of the price of the goods is made by the buyer.
(b) Another 10% to 15% is paid on receipt of documents under letter of credit.
(c) The balance amount is paid in instalments over 1 to 7 years, secured by a ‘Deferred Payment Guarantee’.
(d) All of the above

4. Which of the following statement is false?
(i) In a deferred payment guarantee, the guarantee is to ensure delivery of goods.
(ii) A deferred payment guarantee is mostly based on a primary contract between the buyer and the seller.
(iii) A deferred payment guarantee differs from other kinds of guarantee issued by banks as regards payment liability of the bank on invocation.
(iv) In a deferred payment guarantee the banks liability comes into existence only if all the instalments are not paid and not on the non-payment of any one instalment by the customer.
a. (i), (ii) and (iii)
b. (ii) and (iii)
c. (i), (iii) and (iv)
d. All the statements are false.

5. Which of the following statements is/are correct?
(a) A third party, mostly banks and financial institutions, guarantee the payment of the instalments.
(b) This guarantee ensures timely payment of the instalments to the seller/exporter, failing which, the guarantee can be invoked and payment received.
(c) To understand better the deferred payment guarantee, it is necessary to understand how a payment is made in a deferred payment contract and how the same is guaranteed by a bank.
(d) All the above are correct

6. _________ is a bill of exchange drawn as per the requirements of the NI Act and is not supported by documents of title to goods.
a) Clean Bill
b) Documentary Bill
c) Inland Bill
d) Foreign Bill

7. The maker of the bill is called ____________________.
(a) Endorsee
(b) Drawee
(c) Drawer
(d) None of the above

8. Ownership of goods can be transferred by endorsement and delivery of _______________.
(a) right to money
(b) obligation to pay
(c) document of title to goods
(d) document of title to immovable property

9. What is the characteristic of Inland Bill?
(a) Bills, drawn outside India and made payable in or drawn upon any person, resident in any country outside India
(b) It must be drawn in India upon some person resident in India, though it may be made payable in a foreign country.
(c) Bills drawn outside India and made payable in or drawn upon any person, resident in India.
(d) None of the above

10. A _____ bill is a bill payable otherwise than on demand, and normally a time for payment of the value it represents
(a) Sight bill
(b) Usance bill
(c) Clean bill
(d) Documentary bill