JAIIB Marathon May 2025 IE and IFS Quiz-1

03/05/2025

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JAIIB Marathon May 2025 IE and IFS Quiz-1

JAIIB CAIIB Course Quiz – May 2025: The JAIIB exam for May 2025, conducted by IIBF, is fast approaching. To support your preparation, we are providing regular MCQ-based quizzes specifically designed for the JAIIB CAIIB syllabus. These quizzes are structured module-wise and unit-wise to help you cover the entire syllabus systematically. Practicing these quizzes consistently will strengthen your concepts, improve accuracy, and increase your chances of clearing the exam on your first attempt.

Q.1 The high growth rate experienced by Indian economy during the post reforms period can be attributed to which of the following factor/factors
(i) Increased inflow of foreign capital
(ii) Technological advances
(iii) New product developments
(iv) Increase in consumer demand structure
(a) All are correct
(b) Only (i)
(c) Both ii and iv
(d) Only ii

Q.2 Which of the following statement(s) is/are true about Red Herring Prospectus?
I. A red herring is a preliminary prospectus filed by a company with the Securities and Exchange Commission (SEC), usually in connection with the company’s initial public offering (IPO).
II. It contains issue price of the IPO
III. It contains number of shares being offered or the amount of issue
(a) I and II only
(b) II and III only
(c) I only
(d) I, II and III

Q.3 Which of the following statements regarding the Public Provident Fund (PPF) Scheme is incorrect?
(a) PPF accounts allow up to 12 instalments of investment in a financial year
(b) An individual can claim a tax deduction of up to ₹1,50,000 under Section 80C for PPF contributions
(c) Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are eligible to open a PPF account
(d) Interest earned on PPF investments is compounded annually and is fully exempt from income tax

Q.4 Which of the following conditions will NOT lead to termination of life cover under the PMJJBY scheme?
(a) Attaining the age of 55 years with no renewal
(b) Closure of the linked bank or post office account
(c) Insufficient balance in the account for premium auto-debit
(d) Completion of 5 continuous years under the scheme

Q.5 Which of the following statements regarding the PMJJBY is correct?
(a) Only Life Insurance Corporation of India (LIC) is authorized to offer PMJJBY
(b) Individuals aged between 18 and 60 years can enroll in PMJJBY
(c) Aadhaar serves as the primary KYC document for PMJJBY enrollment
(d) The sum assured under PMJJBY is ₹5 lakh in case of death by accident

Q.6 In which economy all the important decisions about production and distribution is made by the Government?
(a) Capitalist Economy
(b) Command Economy
(c) Mixed Economy
(d) Market Economy

Q.7 The classical theory of interest which helps in determining rate of interest takes into account which of the following?
(a) Demand for money and supply of money
(b) Type of economy
(c) Demand and supply for savings
(d) All of the above

Q.8 Which of the following statements correctly explains the Law of Diminishing Marginal Utility?
(a) It means the satisfaction keeps decreasing with every additional unit of consumption
(b) With advancement of technology devices lose their utility
(c) When one’s income increases it substitutes cheaper goods with higher value goods and quality
(d) None of the above

Q.9 Under the Prime Minister Suraksha Bima Yojana (PMSBY), what is the insurance coverage amount provided in case of partial disability?
(a) ₹2 lakh
(b) ₹1 lakh
(c) ₹50,000
(d) ₹5 lakh

Q.10 The depression phase of the business cycle is not characterised by which of the following?
(a) Underemployment of material
(b) Desire for liquidity increases
(c) General demand falls faster than production
(d) Demand for bank credit is at its lowest

Q.11 Which of the below statement/statements does not hold true:
(a) Marginal Standing facility is used to manage and control credit supply in the country
(b) The current banking system is called a “fractional reserve banking system”
(c) Marginal Standing facility provides a safety valve against unanticipated liquidity shocks to the banking system
(d) Bank rate is a discount rate at which RBI grants long-term loans to commercial banks

Q.12 As per Section 26 of The Banking Regulation Act, 1949, every banking company should file a return to RBI consisting of all accounts that have not been operated for 10 years or more
(a) 15 days after the close of the Calendar year
(b) 15 days after the close of the financial year
(c) 30 days after the close of the Calendar year
(d) 30 days after the close of the financial year

Q.13 Rama, being a valuable customer, has approached you as she was confused as to buy what type of mutual funds. She is thinking of make an investment for her sister’s wedding. She is planning to get her sister married in a period of 2-3 years. As an investment banker what type of mutual fund will you suggest her?
(a) Close ended Scheme
(b) Short Term Equity Fund
(c) Both
(d) Open Ended scheme

Q.14 Which of the following statements regarding banks undertaking equipment leasing services is incorrect?
(a) Banks require prior approval from RBI to undertake equipment leasing activities departmentally
(b) Leasing activities must be treated at par with loans and advances, attracting 100% risk weight for capital adequacy purposes
(c) Facilities extended through leasing are subject to single and group borrower exposure limits as prescribed by RBI
(d) Banks must frame a Board-approved policy for leasing business and ensure safeguards against asset-liability mismatches

Q.15 In a hire purchase agreement, which of the following statements is correct?
(a) Ownership of the asset immediately passes to the hirer on payment of the first instalment
(b) In case of default by the hirer, the seller has the right to repossess the asset
(c) Once the hirer starts paying instalments, he cannot terminate the contract under any circumstance
(d) The hirer is required to pay the entire purchase price in a single lump sum at the end of the contract

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