SOLVED JAIIB COMBINED PAPER 40:
1. In a Bill of exchange normally who is not the Drawee? (i) The person ordering for payment,
(ii) The person directed to pay,
(iii) The beneficiary
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
2. Pari passu is a charge which does not indicate ......
(i) first charge over securities,
(ii) equal charge to charge holders,
(iii) proportionate share to chargeholders
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
3. ABC Co.Ltd. have a current account operated by anyone of the three directors A, B and C of which A dies. A cheque for Rs 50000 signed by A previously, is presented for payment. The bank will
a. dishonour the cheque with the reason :"Signatory is dead "
b. honour the cheque as the company, the account holder has perpetual life
c. seek the company's advice
b. ask the company to stop the payment and issue a new cheque
Ans - b
4. As per lending policy, repayment of term loan is generally given upto .....
a. 10 years
b. 20 years
c. 7 years
d. 1 year
Ans - c
5. ...... goods are to be manufactured/produced/acquired by the seller after making of the contract of sale.
a. Future
b. Specific
c. Moveable
d. Immoveable
Ans - a
6. When condition is imposed by endorser along with endorsement is not called as ......
(i) Facultative Endorsement,
(ii) Restrictive endorsement,
(iii) Conditional Endorsement
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
7. Under open cash credit, the goods are taken as security, without transferring ......
(i) ownership of goods, (iii) possession of goods
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - d
8. Letter of Credit where in addition to advance payment,the beneficiary is entitled to payment of storage charges is called
a. LC
b. Red clause credit
c. Yellow clause credit
d. Green clause credit
Ans - d
9. The Letter of Credit is opened on the request of
a. Issuing bank
b. Applicant
c. Beneficiary
d. Confirming bank
Ans - b
10. Only ...... Letters of credit can be confirmed.
a. Revocable
b. Irrevocable
c. Either a or b
d. None of these
Ans - b
11. Depending upon the place where the bills are made, they can be classified into
a. Inland Bills
b. Foreign Bills
c. Either a or b
d. None of these
Ans - c
12. Limitation period for filling a suit for sale of mortgaged properties in ...... years from the dater the mortgage debt becomes due.
a. 12
b. 15
c. 20
d. 30
Ans - a
13. ledge means ...... of goods for purpose of securing a payment of debt or performance of promise.
a. Lien
b. Bailment
c. Assignment
d. None of these
Ans - b
14. The most important characteristic of pledge is ...... of goods.
a. Assignment
b. Lien
c. Possession
d. None of these
Ans - c
15. Promissory note can be ......
(i) Demand PN, (ii) Usance PN
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Neither (i) nor (ii)
Ans - c
16. In a Bill of exchange normally who is not the Drawer? (i) The person ordering for payment,
(ii) The person directed to pay,
(iii) The beneficiary
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
17. Holder in due course is a person who became possessor of a NI for ......
(i) valuable consideration,
(ii) in good faith,
(iii) after becoming due
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
18. When the confirming bank confirm the credit it
a. does not take any liability
b. undertakes on its part the liability under the LC
c. undertakes to make timely of the documents and bills to the buyer or his bank
d. None of the above
Ans - b
(ii) The person directed to pay,
(iii) The beneficiary
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
2. Pari passu is a charge which does not indicate ......
(i) first charge over securities,
(ii) equal charge to charge holders,
(iii) proportionate share to chargeholders
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
3. ABC Co.Ltd. have a current account operated by anyone of the three directors A, B and C of which A dies. A cheque for Rs 50000 signed by A previously, is presented for payment. The bank will
a. dishonour the cheque with the reason :"Signatory is dead "
b. honour the cheque as the company, the account holder has perpetual life
c. seek the company's advice
b. ask the company to stop the payment and issue a new cheque
Ans - b
4. As per lending policy, repayment of term loan is generally given upto .....
a. 10 years
b. 20 years
c. 7 years
d. 1 year
Ans - c
5. ...... goods are to be manufactured/produced/acquired by the seller after making of the contract of sale.
a. Future
b. Specific
c. Moveable
d. Immoveable
Ans - a
6. When condition is imposed by endorser along with endorsement is not called as ......
(i) Facultative Endorsement,
(ii) Restrictive endorsement,
(iii) Conditional Endorsement
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
7. Under open cash credit, the goods are taken as security, without transferring ......
(i) ownership of goods, (iii) possession of goods
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - d
8. Letter of Credit where in addition to advance payment,the beneficiary is entitled to payment of storage charges is called
a. LC
b. Red clause credit
c. Yellow clause credit
d. Green clause credit
Ans - d
9. The Letter of Credit is opened on the request of
a. Issuing bank
b. Applicant
c. Beneficiary
d. Confirming bank
Ans - b
10. Only ...... Letters of credit can be confirmed.
a. Revocable
b. Irrevocable
c. Either a or b
d. None of these
Ans - b
11. Depending upon the place where the bills are made, they can be classified into
a. Inland Bills
b. Foreign Bills
c. Either a or b
d. None of these
Ans - c
12. Limitation period for filling a suit for sale of mortgaged properties in ...... years from the dater the mortgage debt becomes due.
a. 12
b. 15
c. 20
d. 30
Ans - a
13. ledge means ...... of goods for purpose of securing a payment of debt or performance of promise.
a. Lien
b. Bailment
c. Assignment
d. None of these
Ans - b
14. The most important characteristic of pledge is ...... of goods.
a. Assignment
b. Lien
c. Possession
d. None of these
Ans - c
15. Promissory note can be ......
(i) Demand PN, (ii) Usance PN
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Neither (i) nor (ii)
Ans - c
16. In a Bill of exchange normally who is not the Drawer? (i) The person ordering for payment,
(ii) The person directed to pay,
(iii) The beneficiary
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
17. Holder in due course is a person who became possessor of a NI for ......
(i) valuable consideration,
(ii) in good faith,
(iii) after becoming due
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
18. When the confirming bank confirm the credit it
a. does not take any liability
b. undertakes on its part the liability under the LC
c. undertakes to make timely of the documents and bills to the buyer or his bank
d. None of the above
Ans - b