JAIIB Exam 2025 – RBWM Important Questions MCQs Quiz-4

17/02/2025

Table of Contents

JAIIB Exam 2025 RBWM Important Questions MCQs Quiz-4

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. Which is true regarding operating profit?
(a) OP = Sales – cost of goods sold
(b) OP = Gross Profit − Operating Expenses
(c) OP = GP – Taxes & interest
(d) None of the above

2. Increased staff productivity is one of the most important tool to increase branch profitability. Out of the followings, which one is not true.
(a) Reducing process costs
(b) Clearly defined expectations and scorecards
(c) Improved motivation and rewards systems
(d) Technology alone is sufficient to increase staff productivity

3. Which of the following is an example of a fixed cost for a branch?
(a) Cost of packaging
(b) Sales commission
(c) Marketing expenses
(d) Rent for the building

4. Among the given, which of the following suggests poor pricing or high direct expenses?
(a) Greater ROE
(b) Lower ROE
(c) Greater gross margin
(d) Lower gross margin

5. Which of the following statement is incorrect?
(a) Profit is an absolute amount whereas profitability is a relative one.
(b) Profitability is an absolute amount whereas profit is relative one.
(c) Profitability is a measurement of efficiency of a company in relation to size of the business whereas profit is an absolute number determined by the amount of income or revenue above and beyond the costs or expenses an entity incurs.
(d) Although a company can realize a profit, this does not necessarily mean that the company is profitable.

6. Which formula correctly represents Return on Equity (ROE)?
(a) Return on assets / Leverage ratio
(b) Return on assets – Leverage ratio
(c) Return on assets + Leverage ratio
(d) Return on assets x Leverage ratio

7._________ is the income left over after all expenses, including taxes and interest, have been paid.
a) Gross Profit
b) Operating Profit
c) Net Profit
d) None of the above

8. A branch has a high gross profit margin but low net profit margin. The reason could be:
(a) High operating expenses
(b) Low operating expenses
(c) High cost of goods sold
(d) Low cost of goods sold

9. What is the correct formula to calculate ROA?
a) (Fee income+ Net interest income – Operating Cost)/ Average Assets
b) (Fee income+ Net interest income)/ Average Assets
c) (Fee income+ Net interest income + Operating Cost)/ Average Assets
d) (Net interest income – Operating Cost)/ Average Assets

10. Which among the following is a step to improve branch profitability?
a) Analyse the current customer base for each branch
b) Identify best new prospect opportunities
c) Analyse the competition
d) All of the above