JAIIB 1000+ Practice MCQs, Download Free eBook

Balancing a full-time banking job, daily targets, and JAIIB preparation is a reality for most aspirants. In such a routine, the real challenge is not lack of motivation, but maintaining consistent and effective practice. While reading concepts builds understanding, it is regular MCQ practice that sharpens accuracy, improves speed, and builds exam confidence. Keeping this in mind, we have created the JAIIB Practice MCQs Free eBook, thoughtfully designed for working bankers who aim to achieve maximum results in minimum time through focused, exam-oriented practice.

JAIIB 1000+ Practice MCQs

The JAIIB practice eBook includes different types of questions to help candidates prepare in a structured and effective way. These questions are designed to match the actual exam pattern and test both conceptual understanding and practical application. By practicing these questions, candidates can improve their accuracy, speed, and confidence for the JAIIB exam.

JAIIB IE and IFS Paper Practice Questions

Q1. Which among the following statements are not correct concerning derivatives?

I. Derivatives are only financial instruments (not commodities).
II. Value derived from underlying.
III. Derivatives can be both OTC & exchange traded.
IV. Forwards, futures, options, swaps, debentures, shares are all derivatives.
a) I, II, IV
b) II, III, IV
c) Both I & III
d) Both I & IV

Q2. Which among the following statements correctly represent Exchange – Traded Markets?

 I. Full transparency to exchanges & regulators.
 II. Standardised contracts complicate risk management.
 III. Market participants include dealers & speculators.
 IV. Transparency may lead to privacy issues.
a) I, III, IV
b) I, II, III
c) Both I & III
d) Both II & IV

Q3. Identify the correct statement about factoring:

I. In full-service factoring, the factor bears buyer’s default risk.
II. Factoring regulated under Factoring Regulation Act, 2011.
III. Factoring can be with or without recourse in India.
a) I & II
b) I & III
c) II & III
d) All

Q4. Forfaiting provides which advantages?

I. Provides 100% financing.
II. Saves admin cost.
III. Helps realise transfer price.
IV. Improves exporter’s cash flow.
a) I, II, III
b) II, III, IV
c) II & III
d) All

Q5. Which statements are not correct about Venture Capital?

I. VC = Public/private institutional investment in startups.
II. VC is always both long- & short-term investment.
III. VC investors are financiers & risk bearers.
IV. VC is invested in businesses where uncertainties cannot be quantified into risk.
a) II & IV
b) I & III
c) I & II
d) Only I

Also Check: JAIIB IE And IFS Syllabus

Q6. Match the following types of mutual funds with their corresponding characteristics:
Types of Mutual Funds Characteristics:

1. Index Fund (A) An open-ended scheme replicating/tracking index – Minimum investment in
   securities of a particular index (which is being replicated/tracked) – 95% of
   total assets
2. Funds of Fund (B) open-ended fund of fund scheme investing in fund (mention the underlying
   fund) – Minimum investment in the underlying fund – 95% of total assets
3. ELSS (C) Provides liquidity solutions with low maturity and high credit quality
4. Liquidity Fund (D) Equity-Linked saving Scheme – Provides tax benefits under section 80C
   (A) 1-B, 2-A, 3-D, 4-C
   (B) 1-A, 2-B, 3-D, 4-C
   (C) 1-A, 2-B, 3-C, 4-D
   (D) 1-D, 2-C, 3-A, 4-B

Q7. Calculate the Insurance Density based on the following data:

• Gross Domestic Product (GDP): ₹500 trillion
• Gross Value Added (GVA): ₹400 trillion
• Total Population: 100 million
• Total Insurance Premium: ₹2 trillion
  (A) ₹20,000
  (B) ₹ 15,000
  (C) ₹10,000
  (D) ₹25,000

Q8. The Government of India has envisioned achieving “Insurance for All by 2047” to commemorate 100 years of Independence. Which of the following objectives is least likely to be part of this insurance vision?

(A) Increasing the penetration of life and nonlife insurance across the rural and urban populace.
(B) Promoting innovative insurance products tailored to the specific needs of diverse demographic segments.
(C) Achieving a minimum insurance density comparable to global standards.
(D) Deregulating the insurance sector to allow for 100% foreign direct investment (FDI) without any conditions.

Q9. The __ acts as a Self-Regulatory Organisation (SRO) in the mutual fund industry.
(A) IRDAI
(B) RBI
(C) SEBI
(D) AMFI

Q10. Under the Prime Minister Suraksha Bima Yojana (PMSBY), what is the risk coverage amount provided for accidental death or full disability due to an accident?

(A) ₹1 lakh
(B) ₹5 lakh
(C) ₹2 lakh
(D) ₹10 lakh

JAIIB PPB Paper Practice Questions

Q1. Which of the following are functions of the Foreign Exchange Management Act (FEMA)?

1. To regulate dealings in foreign exchange.
2. To promote orderly development and maintenance of the foreign
   exchange market in India.
3. To prohibit all capital account transactions.
   A. 1 and 2 only
   B. 1 and 3 only
   C. 2 and 3 only
   D. All three

Q2. Which of the following are covered under “Current Account Transactions”
as per FEMA?

• Payments due in connection with foreign trade.
• Remittances for living expenses of family members abroad.
• Expenses in connection with foreign travel.

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. All three

Q3. Which of the following statements are correct regarding Non-Resident Ordinary (NRO) Accounts?

• NRO accounts can be opened jointly with residents.
• Repatriation of funds from NRO accounts is permitted up to USD 1 million
  per financial year.
• Interest earned on NRO accounts is exempt from tax.
  A. 1 and 2 only
  B. 1 and 3 only
  C. 2 and 3 only
  D. All three

Q4. Which of the following is correct regarding Foreign Currency Non-Resident (FCNR) Accounts?

• They can be maintained only in foreign currency.
• The minimum maturity period is 1 year and maximum 5 years.
• The interest earned is fully taxable in India.
  A. 1 and 2 only
  B. 1 and 3 only
  C. 2 and 3 only
  D. All three

Q5. Which of the following are correct about External Commercial Borrowings (ECB)?

• ECBs are commercial loans raised by eligible resident entities from
  recognized non-resident entities.
• ECBs can be used for any purpose including real estate and capital
  markets.
• ECBs are governed by FEMA regulations.
  A. 1 and 2 only
  B. 1 and 3 only
  C. 2 and 3 only
  D. All three

Also Check: JAIIB PPB Syllabus

Q6. Which of the following is the most important advantage of Land and Building as a security?

(A) Its value generally increases with time
(B) The release of such securities involves very little expense and formality.
(C) They have a ready market and can be easily sold.
(D) Valuation can be easily done.
Principles and Practices of Banking Paper – October 2023

Q7. The users of the e-voucher can redeem the evoucher by using:

(A) Digital Payment Apps
(B) Internet Banking
(C) Cards
(D) None of the above

Q8. What advantages does a seller gain from using a Letter of Credit?

(A) Advance payment is to be made to the seller.
(B) On shipment of the goods, the seller can draw bills and negotiate them with a bank in their country, getting
immediate payment.
(C) The buyer cannot induce the seller to give credit.
(D) All of the above

Q9. Which transmission medium is immune to electromagnetic interference?

(A) Optical Fibre
(B) Twister Pair cables
(C) Coaxial cables
(D) UTP Cables

Q10. is the prosecuting authority for money laundering crime.

(A) RBI
(B) SEBI
(C) FIU
(D) ED

JAIIB AFM Paper Practice Questions

Q1. Which of the following statements about a bank reconciliation statement is correct?
I. A bank reconciliation statement is prepared to identify discrepancies between a company’s accounting records
and the bank statement.
II. A credit balance in the bank statement represents overdraft.
III. Bank service charges and interest earned are adjustments made on the company’s books.
IV. A bank reconciliation statement is only necessary for large corporations and is not relevant for small businesses.
(A) I and II
(B) I and III
(C) II and III
(D) I, II, and III

Q2. Which of the following statements regarding standard costing are correct?
I. Standard costing involves setting predetermined cost levels for materials, labor, and overhead.
II. It provides a benchmark for evaluating actual performance against expected costs.
III. Standard costing is primarily used for historical cost reporting.
IV. Variances in standard costing can provide insights into areas of operational efficiency or inefficiency.
(A) I & II
(B) I, II & III
(C) I, II & III
(D) I, II & IV

Q3. What does a high debt/equity ratio indicate for a company?
(A) The company has a higher level of financial leverage
(B) The company is more conservative in its financing approach
(C) The company is at a lower risk of default
(D) None of the above

Q4. Which one of the following statements about Corporate Social Responsibility (CSR) is not correct?
I. Corporate social responsibility is traditionally grouped in four categories, viz. environmental, philanthropic,
ethical, and economic responsibility.
II. The statutory obligations are laid down in Section 135 of the Companies Act, 2013 which, inter alia, mention
the activities that a company can undertake under CSR.
III. The companies must disclose the details of the CSR activities separately in the Annual report of the Board of
Directors.
(A) Only I
(B) Only II
(C) Only III
(D) All statements are correct

Q5. Which statement accurately describes the relationship between bond price and yield to maturity (YTM)?
(A) A bond’s price and YTM are directly proportional.
(B) A bond’s price and YTM are inversely proportional.
(C) A bond’s price is not affected by its YTM.
(D) A bond’s price is only affected by its face value.

Also Check: JAIIB AFM Syllabus

Q6. A firm’s trial balance shows Salaries = ₹1,20,000. Adjustments: Salaries outstanding = ₹10,000; Prepaid salaries = ₹5,000. How will Salaries appear in the Profit & Loss A/c?
A. ₹1,20,000
B. ₹1,25,000
C. ₹1,15,000
D. ₹1,30,000

Q7. Closing stock is ₹1,50,000, but the accountant forgets to record it. Which statement is correct?
A. Trading account shows lower gross profit; Balance Sheet shows lower assets
B. Trading account shows higher gross profit; Balance Sheet unaffected
C. Trading account unaffected; Balance Sheet shows higher liabilities
D. Trading account shows lower expenses; Balance Sheet unaffected

Q8. A firm pays ₹36,000 insurance for 12 months on 1st October. At year-end (31st March), what adjustment is required?
A. Prepaid insurance ₹18,000 shown as asset, Insurance expense ₹18,000
B. Insurance expense ₹36,000, no adjustment
C. Prepaid insurance ₹15,000, Insurance expense ₹21,000
D. Prepaid insurance ₹24,000, Insurance expense ₹12,000

Q9. General Reserve = ₹50,000; Net Profit = ₹2,00,000. The firm transfers 10% of Net Profit to General Reserve and declares dividend of ₹60,000. Closing balance of General Reserve will be:
A. ₹70,000
B. ₹2,10,000
C. ₹2,50,000
D. ₹2,60,000

Q10. A company’s opening stock = ₹40,000, purchases = ₹2,20,000, wages = ₹20,000, closing stock = ₹60,000. What is the Cost of Goods Sold?
A. ₹2,20,000
B. ₹2,40,000
C. ₹2,20,000
D. ₹2,00,000

JAIIB RBWM Paper Practice Questions

Q1. What distinguishes convertible bonds from conventional bonds is a matter of interest to a potential investor.
(A) Convertible bonds offer more attractive interest rates.
(B) Convertible bonds have a fixed maturity date.
(C) Convertible bonds have the option to be converted into equity shares.
(D) Convertible bonds are issued by companies having high credit ratings.

Q2. The term “Artificial Intelligence” (Al) is credited to who coined it in 1955.
(A) Alan Turing
(B) John McCarthy
(C) Elon Musk
(D) Steve Jobs

Q3. A customer wants to open a Small Saving Account and is inquiring about a distinctive aspect of this account type. What is a unique feature of this type of account?
(A) High-interest rates
(B) No limit on Credits
(C) Limited withdrawals
(D) Monthly maintenance fees

Q4. Which among the following documents is NOT considered an Officially Valid document according to RBI guidelines?
(A) Aadhar Card
(B) Passport
(C) Voter ID Card
(D) None of the above

Q5. Credit score above is considered good by banks.
(A) 500
(B) 600
(C) 700
(D) 800

Also Check: JAIIB RBWM Syllabus

Q6. Among the given, on the basis of the approach and the models, which of the following is correctly matched?
A. Departmental model → concept of retail banking adopted under standard
norms by PSBs in India.
B. Horizontally organised approach → adopted generally by Public Sector Banks.
C. Strategic business unit approach → adopted by new generation private sector
banks.
D. All a, b, c are true.
Answer: D

Q7. ABC Bank’s average interest rate received on assets is 8% and paid on liabilities is 3%. The bank’s average total assets are ₹500 Crores. Calculate the bank’s Interest Rate Spread.
A. 5%
B. 11%
C. 3%
D. 13%
Answer: A

Q8. What is a measure of financial performance calculated by dividing net income by shareholders’ equity?

1. Return on Equity (ROE)
2. Return on Assets (ROA)
3. Return on Yield
4. Leverage Ratio
   Answer: 1 (Return on Equity)

Q9. Company ABC Ltd. has Sales ₹10,00,000, Gross Profit ₹5,00,000, and Operating Expenses ₹1,00,000. Calculate Operating Profit Margin.

1. 20%
2. 10%
3. 30%
4. 40%
   Answer: 4 (40%)

Q10. Calculate the Gross Profit on sale of ₹40,000 if the rate of gross profit on cost of goods sold is 50%.
A. ₹32,000
B. ₹48,000
C. ₹13,200
D. ₹16,000
Answer: C

Download JAIIB Free Practice Question eBook PDF

The direct link to download the JAIIB free eBook PDF is provided below. Candidates can use this link to download the PDF easily.

Book Name	Link to Download PDF
800+ Important JAIIB Questions	Download Free PDF
JAIIB Memory Based 2025 Paper	Download PDF
750+ Solved Previous Year JAIIB Questions	Download PDF

What are the features of the JAIIB 1000+ practice MCQs eBook?

Preparing for JAIIB while managing a full-time banking job requires smart and focused study material. The JAIIB 1000+ Practice MCQs eBook is designed to meet exactly this need. It offers structured practice, exam-oriented questions, and quick revision support all in one place. Below are the key features that make this eBook a valuable resource for JAIIB aspirants.

Feature	Details
1000+ practice MCQs	The eBook contains more than 1000 multiple-choice questions to help candidates practice thoroughly for the JAIIB exam.
Coverage of all key JAIIB subjects	Questions are included from Indian Economy & Indian Financial System, Principles & Practices of Banking, Accounting & Financial Management for Bankers, and Retail Banking & Wealth Management.
Latest exam pattern	All MCQs are prepared as per the latest JAIIB syllabus and exam pattern to ensure relevant practice.
Detailed answers provided	Each question comes with a clear answer to help candidates understand concepts and evaluate their performance.
Different types of questions	The eBook includes a mix of easy, moderate, and concept-based questions to improve problem-solving skills.
Wide topic coverage	Questions are designed to cover important topics from every subject for complete syllabus revision.
Useful for quick revision	The MCQs help candidates revise important topics quickly, especially before the exam.
Ideal for working bankers	The eBook is suitable for candidates who have limited time and want focused, exam-oriented practice.
Easy-to-use PDF format	The practice questions are provided in a downloadable PDF, allowing candidates to study anytime and anywhere.

Also Check:

Study Plan	Study Plan
JAIIB IE And IFS Study Plan	JAIIB PPB Study Plan
JAIIB AFM Study Plan	JAIIB RBWM Study Plan

How to use this JAIIB MCQ eBook effectively?

To get the best results from the JAIIB MCQ eBook, it is important to use it in a planned and disciplined way. Simply downloading the eBook is not enough. When used correctly, these practice questions can help you improve accuracy, manage time better, and identify weak areas. A smart and consistent approach to MCQ practice will make your JAIIB preparation more focused and exam-oriented.

• Solve 25–30 MCQs daily
• Track incorrect answers
• Revise related concepts immediately
• Re-attempt the same questions after a week
• Combine MCQ practice with short notes

Even 30 minutes daily with this eBook can significantly improve your score.

How does JAIIB previous year papers can be helpful along with prectice questions?

JAIIB previous year papers help candidates to understand the exam pattern, important topics, and the level of difficulty of questions asked in the exam. When used along with regular practice questions, they provide a complete preparation approach. Previous year papers show what has been asked earlier, while practice MCQs help strengthen concepts and improve speed and accuracy. Together, they help candidates identify repeated topics, reduce exam fear, and build confidence for the actual JAIIB exam.

Paper Name	Link
JAIIB Previous Year Questions	Download PDF
Practice JAIIB previous Year Questions	Attempt Now

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