JAIIB PPB Most Expected Questions (Part - 6) with Detailed Answers

The JAIIB PPB exam focuses on practical understanding of banking concepts, rules, and real-life applications. Many questions are based on situations that a banker may face in daily work. This makes concept clarity very important for scoring well.

In this part, we have covered important and expected questions from key topics like demand drafts, loans, negotiable instruments, priority sector lending, and banking technology. These questions will help you revise important concepts quickly and improve your accuracy in the exam.

Why Practice Most Expected Questions?

Many students focus only on theory. But in the exam, questions are often application-based.

Practising expected questions helps you:

• Understand how concepts are used in real situations

• Improve speed and accuracy

• Reduce confusion during the exam

• Build confidence in important topics

Regular practice also helps in revising multiple topics at once.

JAIIB PPB Most Expected Questions 

Below are important questions directly based on the content you shared. These are useful for revision and exam practice. Language is kept simple and clear for quick understanding.

Question 1: A duplicate demand draft can be issued when:

I. The customer visits the bank and requests stop payment on the original DD
II. The customer may be required to sign an indemnity bond

A. Only I
B. Only II
C. Both are correct
D. None are correct

Correct Answer: C. Both are correct

Explanation: A duplicate DD can be issued if the original is lost or stolen. The customer must inform the bank and request stop payment. For higher amounts, an indemnity bond is required to protect the bank.

Question 2: Which of the following statements are correct?

I. Term loans are long-term loans used for investments like machinery
II. Term loans are for capital expenditure, while working capital loans are for operating expenses
III. Term loans usually require collateral, while working capital loans may be unsecured

A. Only I & II
B. Only II & III
C. All are correct
D. None are correct

Correct Answer: C. All are correct

Explanation: Term loans are used for long-term investments. Working capital loans are used for daily business expenses. Collateral is generally required for term loans.

Question 3: In the Negotiable Instruments Act, a promissory note is:

I. An unconditional promise in writing to pay a certain sum of money
II. An order to a third party to pay money
III. A written contract for sale of goods
IV. A receipt for goods delivered

A. Only I
B. Only II & IV
C. Only II & III
D. Only I, II & III

Correct Answer: A. Only I

Explanation: A promissory note is an unconditional written promise to pay money. It is defined under the Negotiable Instruments Act, 1881.

Question 4:

Current Assets = ₹800 lakh
Other Current Liabilities = ₹80 lakh
Net Working Capital = ₹250 lakh

Find MPBF using the second method.

MPBF=Current Assets−Other Current Liabilities−Net Working Capital

A. ₹720 lakh
B. ₹540 lakh
C. ₹520 lakh
D. ₹470 lakh

Correct Answer: D. ₹470 lakh

Explanation: MPBF = 800 − 80 − 250 = ₹470 lakh

Question 5: A LAN is a network that:

I. Spans a large geographical area
II. Connects devices within a limited area
III. Connects networks across the world
IV. Is only used in business

A. Only I
B. Only II
C. Only I, II, III
D. All I, II, III, IV

Correct Answer: B. Only II

Explanation: LAN connects devices in a small area like a home or office. It does not cover large areas.

Question 6: Which Act provides a mechanism to investigate corruption and misuse of power?

A. Money Laundering Act, 2011
B. Whistle Blowers Protection Act, 2011
C. Central Vigilance Commission
D. None of the above

Correct Answer: B. Whistle Blowers Protection Act, 2011

Explanation: The Whistle Blowers Protection Act, 2011 protects individuals who report corruption.

Question 7: Which factors facilitate computer fraud?

1. Inadequate control over data

2. Easy system access

3. Inadequate control over output

A. All 1 to 3
B. Only 1 & 2
C. Only 2 & 3
D. Only 1 & 3

Correct Answer: A. All 1 to 3

Explanation: Weak controls and easy access increase the risk of fraud. All given factors are correct.

Question 8: Which transaction is allowed using the DDA balance?

A. Purchase of real estate in India
B. Payment of personal expenses
C. Purchase of rough, cut, and polished diamonds
D. Investment in Indian securities

Correct Answer: C. Purchase of rough, cut, and polished diamonds

Explanation: DDA is used only for diamond trade transactions. Other uses are not allowed.

Question 9: Agriculture advances should be what percentage of Net Bank Credit?

A. 4.5%
B. 10%
C. 18%
D. 25%

Correct Answer: C. 18%

Explanation: Banks must allocate 18% of their Net Bank Credit to agriculture under priority sector lending.

Question 10: Cheque Truncation System (CTS) allows:

I. Physical exchange of cheques
II. Electronic exchange of cheque images
III. Cancellation of cheques
IV. None of the above

A. Only I & II
B. Only II
C. Only I, II & III
D. All are correct

Correct Answer: B. Only II

Explanation: CTS replaces physical cheque movement with electronic images.

Question 11: Maximum number of members in an SHG without registration is:

A. 10
B. 15
C. 20
D. 25

Correct Answer: C. 20

Explanation: An SHG can have up to 20 members without registration. Beyond this, registration is required.

Focus on understanding concepts rather than memorising answers. Most JAIIB questions test application of knowledge.

Revise topics like:

• Demand drafts and indemnity

• Loan types

• Negotiable instruments

• MPBF calculation

• Priority sector lending

• Banking technology

Practise regularly and revise these questions multiple times. This will help you improve accuracy and confidence in the exam.