JAIIB PAPER NO. II – ACCOUNTING & FINANCE FOR BANKERS

1. What is the Rate of Interest if Rs.2000/- when invested on Simple Interest becomes

Rs.4000/- in 8 years……

a. 13.25 % b. 13.50 %

c. 12.5 % d. 12.75 %

2. Rs.2000/- when invested on Simple Interest becomes Rs.4000/- in 8 years, in how

many years it will become Rs.8000/-…...

a. 12 b. 16

c. 20 d. 24

3. What is the Present Value of Rs.7500/- to be received after 4 years, if the current

investment rate is 7.5% pa……

a. 5616 b. 5576

c. 5689 d. 5715

4. I need Rs.40000/- to enable me to purchase a Bike after 2 years. How much amount

I should invest if the rate of interest is 8% pa. Compounded quarterly…….

a. 34140 b. 35570

c. 32480 d. 33845

5. Diminishing balance method of depreciation is one, according to which……

a. The amount on which depreciation is charged declines from year to year

b. The rate at which depreciation is charged declines from year to year

c. The rate as well as the amount declines from year to year

d. The rate & the amount remains the same but the depreciation amount declines

from year to year as per government guidelines

6. Expenditure incurred on ‘Research & Development’ is an example of……

a. Capital expenditure

b. Revenue expenditure

c. Deferred revenue expenditure

d. It indicates cash withdrawal

7. There is overdraft of Rs.17000/- as per cash book of the trader, he deposited a

cheque of Rs.7000/- in the bank which is not yet credited to the trader’s account.

What is the balance as per bank pass book……

a. Rs.10000/- b. Rs.17000/-

c. Rs.24000/- d. None of these

8. A, B & C share profits in 3:2:1. If B retires and his share is taken by A & C in ratio

2:1, what is their new profit sharing ratio…….

a. 4 : 5 b. 5 : 7

c. 13 : 5 d. 5 : 13

9. RBI has put minimum ‘Capital to Risk-Weighted Assets Ratio’ (CRAR) for New

Private Sector Banks at………

a. 8% b. 9%

c. 15% d. Not Applicable to Pvt. Sector Banks

10. Which of the following maxim is applied in the case of Indirect Quotation……….

a. Buy Low Sell High b. Buy High Sell Low

c. Buy Low Sell Low d. Buy High Sell High