JAIIB Practice Test 2 : Principles and practice of banking

The value of a brand is its power to capture consumer preference and loyalty. The positive differential effect that knowing a brand name has on consumer response to a product or service, is called as brand equity. Brands represent consumers’ perceptions and feelings about a product and its performance. Which of the following would be the most appropriate for branding in the case of a bank?

ABC Bank Ltd., has a special product for senior citizens which provides cheque book on savings account with customers’ name on cheque book, free of cost debit card with overdraft facility of Rs. 25,000 a special pouch for holding passbook, cheque book and debit card facility for withdrawal and deposits at any branch of the bank, free of cost remittance to any branch of the bank and free of cost remittance, to any branch of another bank covered under RTGS facility. Which of the following is the core product in this offering?

ABC Bank Ltd. Finds that its savings account which requires a Rs. 400 minimum balance, cost the banks Rs. 3.13 per month is servicing costs, Rs. 1.18 per month in overhead expenses and a profit margin of Rs. 0.50 is added per month. What monthly free should the bank charge for each customer?
Further analysis of customer accounts reveals that for each Rs. 100 maintained in average balance in its savings account, the bank saves about 5% in operating expenses associated with each account. For a customer who consistently maintains an average balance of Rs. 1000 per month, how much should the bank charge this customer and still protect its profit margin?

Shrikant is a current account holder of ABC Bank Ltd. Shrikant is angry with the bank as he “account closed” when there was sufficient credit balance Rs. 350 in his account. Bank claimed that the account of Shrikant was closed, based on his telephonic conversation with the branch manager of the bank for closing the account. Bankers’ cheque for Rs. 350 was posted to Shrikant recently by the bank. Shrikant deniel having had any such conversation and threatened to sue the bank. Which of the following is the most appropriate action:

Miss Neha Agarwal issues an order cheque to Natwarlal. One Rajaram signs on the bank of the cheque (Rs. 5000) and then approaches the bank for payment. The banks’ teller asked the holder “Rajaram signs at the bank of the cheque and the bank encashes it”. Later on it was found that the signature o the payee was forged. Which of the following is correct in this case?

Wholesale banking refers to ________

IFSC is an alpha numeric code that uniquely identifies a bank-branck participating in theNEFT system. What does IFSC stands for?

The DRT act does not apply to which of the following states?

The word “FTP” stands for

The core functions of a bank comprise___

(i) Depost-Taking from the public
(ii) Lending of money and investment in Government Securityes.
(III) Funds transfer / remittance

The equity capital of RRBs is contributed y—-

Which instrument comes as a protection for the importer/exporter

ATM card holder wants to operate the card, but he/she forgets the number for insertion in the ATM machine. What is that number called?

Which of the following is an interest bearing bank deposit?

A customer deposits shares of MTNL and jewelry in the safe deposit vaults/lockers of a bank for safety against payments of specific amount. What is the role of the bank?

The main characteristics of intangibility, inseparability, heterogeneity, perish ability pertain to?

There are four stages in a product life cycle viz., introduction, growth, maturity and decline. From the following which products is in its introductory stage in modern banking?

Which of the following is not a part of the fundamental principles, which guide lending?

If an exporter is doubtful about an issuing bank’s ability to pay, under LC he will expect a domestic bank to join one transaction. This type of LC is called credit?

The length between two branches of zero bank plc. Is 300 meters what computer network will link computers and peripherals of both the Brander?

Out of the following products/ services provided by a bank which do not belong to the product line of orders?

Which is the rate, the banks quote to their most trusted and credit worthy customers?

Off Balance sheet activities undertaken by books generate good return for a bank and they are more risky too. Which of the following are off-balance sheet activities?

 Name the fund transfer system which is directly connected with on retailers terminal?

What is the final stage of a product in product development?

Which of the following is not a service for a bank?

______ is an integration of marketing activities directed towards customer satisfaction-

Market information means

A product line is a group of related products that function in a similar manner, are sold to the same customer groups, and marketed through the same type of outlets :

With______pricing, the products are priced below list price (or even below cost)for a temporary period to create buying urgency.