The JAIIB exam is a crucial milestone for banking professionals who want to strengthen their knowledge and advance their careers. Among its key sections, the Principles and Practices of Banking (PPB) Module B focuses on the Functions of Banks. Mastering this module is essential for understanding how banks operate across retail, wholesale, treasury, and international banking, as well as non-fund-based facilities.
To support effective preparation, we have prepared a Module B practice quiz and a free downloadable PDF to help bankers test their understanding of key banking functions and concepts.
What topics are covered in JAIIB PPB Module B?
JAIIB PPB Module B emphasizes the functions and operations of banks across different areas. This module helps banking professionals apply theoretical knowledge to practical scenarios and ensures they understand how banks serve various customers, manage risks, and comply with regulations.
- Retail Banking – Features, Products, Technology, Risks
- Wholesale Banking – Characteristics, Products, Recent Trends
- Treasury Management – Functions, Objectives, Risks, Key Aspects
- International Banking – Exchange Rates, FEMA Guidelines, NRI Deposits, Remittances
- Non-Fund Based Facilities – Letters of Credit (LCs), Bank Guarantees, Types & Applications
Download PPB Module B practice quiz PDF
To simplify preparation for professionals, we have provided a free PDF containing 100 practice questions with solutions and explanations. You can download the PDF directly using the link below.
Attempt JAIIB PPB Module B Practice Questions
By regularly practicing with this quiz and PDF, banking professionals can prepare confidently for the JAIIB PPB Module B exam and improve their understanding of banking functions and operations. Start the Module B practice quiz now for free to test your knowledge and strengthen your skills.
JAIIB PPB Module B Practice Quiz
1. Under the Tandon Committee method for working capital assessment, the ‘Maximum Permissible Bank Finance’ (MPBF) under Method II is calculated as:
2. NUMERICAL: A company has the following data: Current Assets = ₹80 lakh, Current Liabilities (other than bank borrowings) = ₹20 lakh. Calculate the MPBF under Tandon Committee Method II.
3. For MSME borrowers, the maximum period up to which sundry debtors are considered eligible for bank finance in working capital assessment is:
4. The Marginal Cost of Funds Based Lending Rate (MCLR) replaced the earlier Base Rate system from:
5. Under the External Benchmark Lending Rate (EBLR) system, which of the following is NOT an approved external benchmark for floating rate loans?
6. In a ‘Pledge’ of securities by a borrower to a bank, which of the following correctly describes the legal position?
7. A borrower offers a Life Insurance Policy (LIP) as collateral for a bank loan. What charge is created on the policy?
8. CASE STUDY: Rajesh takes a gold loan from a bank by pledging 100 grams of gold jewellery at 75% LTV (Loan to Value). If the current gold price is ₹6,000 per gram, what is the maximum loan amount Rajesh can get?
9. A ‘Hypothecation’ charge is typically created on which type of asset?
10. A ‘Simple Mortgage’ under the Transfer of Property Act differs from an ‘English Mortgage’ in that:
11. Which of the following is a PRIMARY loan document (executed at the time of loan sanction)?
12. A Mortgage Deed for a property loan above ₹100 is required to be:
13. As per RBI’s NPA classification norms, a term loan becomes a Non-Performing Asset (NPA) when interest or principal remains overdue for more than:
14. Under RBI’s asset classification, which of the following is the CORRECT order from least to most severe NPA classification?
15. What is the provisioning requirement for a ‘Loss Asset’ as per RBI norms?
16. CASE STUDY: Mr. Suresh has a cash credit account with a limit of ₹10 lakh. The current outstanding is ₹12 lakh (exceeding the limit by ₹2 lakh). The last credit entry was 95 days ago, and interest has been debited but not paid. How should this account be classified?
17. As per RBI’s Income Recognition and Asset Classification (IRAC) norms, interest income on NPA accounts should be recognised:
18. The SARFAESI Act, 2002 empowers banks to:
19. SARFAESI Act does NOT apply to which of the following?
20. The Recovery of Debts and Bankruptcy (RDB) Act, 1993 established Debt Recovery Tribunals (DRTs). What is the minimum loan amount for which DRT jurisdiction applies?
Quiz Summary
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Why is practicing JAIIB PPB Module B questions important?
Regular practice is vital for consolidating your knowledge and performing well in the exam. Practicing Module B questions helps you:
- Understand Banking Functions: Learn how different banking operations work in real-life scenarios.
- Enhance Speed and Accuracy: Get familiar with question patterns and answer efficiently.
- Build Confidence: Be prepared for conceptual, scenario-based, and practical questions.
How can you maximize your PPB Module B preparation?
To get the most out of your Module B preparation, follow these professional tips:
- Analyze Mistakes: Review every incorrect answer to understand the reasoning behind it.
- Focus on Weak Areas: Spend extra time on topics like treasury management, international banking, or non-fund-based facilities if they seem difficult.
- Stay Updated with RBI Guidelines: Regularly check circulars, notifications, and regulatory updates.
- Engage in Case Studies and Discussions: Collaborate with peers to understand practical applications of banking functions.
Download JAIIB important MCQs Free PDF
Also, download the JAIIB important MCQs free PDF here:
| Study Material | Study Material |
| JAIIB IE and IFS Important Questions PDF | JAIIB PPB Important Questions PDF |
| JAIIB AFM Important Questions PDF | JAIIB RBWM Important Questions PDF |
FAQs
It helps professionals understand how banks function in retail, wholesale, treasury, and international operations.
Topics include retail banking, wholesale banking, treasury management, international banking, and non-fund-based facilities.
Yes, the quiz includes conceptual and scenario-based questions.
Yes, it covers exchange rates, FEMA guidelines, NRI deposits, and remittances.
These include letters of credit (LCs), bank guarantees, and their applications.
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