JAIIB Exam 2025 – RBWM Important Questions MCQs Quiz-16

24/03/2025

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JAIIB Exam 2025 RBWM Important Questions MCQs Quiz-16

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB RBWM 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. _____refers to a bank or company that transfers from its balance sheet a single asset or a pool of assets to an SPV as a part of a securitization transaction.
(a) Obligor
(b)Originator
(c) Borrower
(d)None of the above

2. Which one of the following statements is appropriate in respect of Securitization Process?
(i) The lender first selects the assets they want to securitise.
(ii) The issuer (Special Purpose Vehicle) makes payment to the lender for the loans securitised.
(iii) The assets are converted into a pool of securities by the lender for the purpose of issuing Pass through Certificate (PTC).
(iv) The PTCs are sold to other investors who are willing to invest.
(a) (i) & (iii) only
(b) (ii) & (iv) only
(c) (i), (ii) & (iv) only
(d) (i), (ii), (iii) & (iv) above

3. What does securitization mean?
(a) Disposal of securities towards recovery of loan overdue
(b)Pooling individual loans and selling as a package
(c) Trading in securities and other market instruments
(d) Issuing new securities for a bank to raise money for lending

4. Securitization can be affected for __________.
(a) Standard assets only
(b)Rated accounts only
(c) Standard & Sub-standard assets
(d) All the above

5. RBI has revised/reduced Minimum Holding Period (MHP) for securitization:
(a) From 12 months to 6 months
(b) From 24 months to 12 months
(c) From 12 months to 9 months
(d)No change

6. NARCL has been set up by ________.
(a) Government of India
(b) State Governments
(c) By Banks
(d)None of the above

7. RBI guidelines stipulate MRR of ____of the book value of the loans being securitized for Loans with an original maturity of 24 months or less and _______of the book value of the loans being securitized for Loans with an original maturity of more than 24 months.
a) 5%, 15%
b) 5%, 10%
c) 10%, 20%
d) 20%, 25%

8. The minimum ticket size for issuance of securitization notes shall be ______.
a) Rs. 1 crore
b) Rs. 50 lakhs
c) Rs. 25 lakhs
d) Rs. 10 lakhs

9. What are the advantages of securitization?
a) It helps reduce lending concentration and improve liquidity
b) Supports converting non-liquid loans or assets into liquid assets or marketable securities.
c) banks can keep loans off their balance sheet, thus reducing need for additional capital
d) All of the above

10. ________ professionally manage the assets acquired by NARCL for resolution.
a) CERSAI
b) RBI
c) IDRCL
d) ARC