The JAIIB Principles and Practices of Banking (PPB) Module B covers the Functions of Banks, including retail, wholesale, treasury, international banking, and non-fund-based facilities. To help banking professionals prepare effectively, we provide a practice quiz and a free downloadable PDF to test their knowledge of key banking functions and concepts.
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
Regular practice with this quiz and PDF helps banking professionals prepare confidently for the JAIIB PPB Module B exam and improve their understanding of banking operations. Start the free Module B practice quiz now to test your knowledge and sharpen your skills.
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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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
Why is practicing JAIIB PPB Module B questions important?
Regular practice plays an important role in strengthening your understanding and improving your exam performance. By consistently solving Module B questions, you can build clarity, improve speed, and feel more confident on the exam day.
- Understand banking functions better: Practice helps you learn how different banking activities work in real-life situations, especially in areas guided by Reserve Bank of India norms.
- Improve speed and accuracy: When you solve more questions, you get used to common patterns and can answer quickly with fewer mistakes.
- Build confidence for the exam: Regular practice prepares you for different types of questions, including concept-based and practical scenarios.
How can you maximize your PPB Module B preparation?
To prepare effectively for the JAIIB PPB Module B exam, follow a clear study plan, practise questions regularly, and stay updated on real-world banking developments. Focus on key banking functions and work on weak areas to improve your understanding and exam performance.
- Analyze mistakes: Review explanations to understand concepts and avoid repeating errors.
- Focus on weak areas: Practise difficult topics like treasury management, international banking, and non-fund-based facilities.
- Follow RBI updates: Read the latest Reserve Bank of India (RBI) guidelines and circulars to stay updated on banking rules.
- Practise case studies: Discuss banking concepts with peers and solve practical questions to understand their real-world use.
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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