Free 2026 JAIIB Mock Exam
JAIIB Paper 2: Principles & Practices of Banking
Full 2026 IIBF pattern mock exam environment. Answer questions, flag items for review, and receive an instant diagnostic scorecard with topic breakdowns free.
Exam Attempt Completed
IIBF Passing Threshold is 50%. Your final scorecard breakdown is below.
Topic Performance & Weakness Diagnostics
| Topic Tested | Score | Accuracy (%) | Strength Status |
|---|---|---|---|
| Safe Custody Relationship | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Cash Reserve Ratio (CRR) Calculation | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Straight Line Method (SLM) | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Operating Cycle & Cash Conversion Days | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Agent and Principal Relationship | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Banker's Right of Set-Off | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Current Ratio & Quick Ratio | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Primary Deficit calculation | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Annuity Due vs Ordinary Annuity | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Sectors of the Indian Economy | 0 / 1 | 0% | WEAK - REVISION NEEDED |
Detailed Solved Question Key & Explanations
When a customer deposits sealed valuables or packets with a bank for safe custody, what is the legal relationship between the bank and the customer?
For safe custody of valuables, the bank accepts possession of goods without transferring ownership, acting as the Bailee, while the customer is the Bailor.
Safe Custody = Bailee (Bank) / Bailor (Customer)A scheduled commercial bank has Net Demand and Time Liabilities (NDTL) of Rs. 3700 Crores. If the Cash Reserve Ratio (CRR) rate is 4.5%, what is the cash reserve amount the bank must maintain with the RBI?
CRR Balance = NDTL * CRR Rate = 3700 * 4.5% = Rs. 166.50 Crores. CRR balances do not earn any interest.
CRR Balance = NDTL * CRR %A bank purchases machinery for Rs. 200 Lakhs with an estimated salvage value of Rs. 5 Lakhs at the end of its useful life of 5 years. Under the Straight Line Method (SLM), what is the annual depreciation charge?
Annual Depreciation (SLM) = (Original Cost - Salvage Value) / Useful Life = (200 - 5) / 5 = 195 / 5 = Rs. 39.00 Lakhs per annum.
Depreciation = (Cost - Salvage) / Useful LifeA company has Inventory Holding Period of 60 days, Debtors Collection Period of 40 days, and Creditors Payment Period of 20 days. What is the Net Cash Conversion Cycle (CCC)?
Gross Operating Cycle = Inventory Days + Debtors Days = 60 + 40 = 100 Days. Net Cash Conversion Cycle (CCC) = Gross Operating Cycle - Creditors Payment Days = 100 - 20 = 80 Days.
CCC = Inventory Days + Debtors Days - Creditors DaysWhen a bank collects cheques, drafts, or bills of exchange on behalf of a customer, what is the legal relationship between the bank and the customer?
While collecting cheques or bills for collection, the bank acts as an Agent for the customer (Principal). Once funds are collected and credited to the account, the relationship changes to Debtor (Bank) and Creditor (Customer).
For a bank to exercise its Right of Set-Off between a customer's debit balance (loan) and credit balance (deposit) accounts, which of the following is a mandatory legal condition?
Right of Set-Off requires 'mutuality of debt', meaning accounts must be in the same name and in the same right/capacity (sole debt against sole deposit). A bank cannot set off an individual partner's personal loan against the firm's partnership account without consent.
A firm has Total Current Assets of Rs. 160 Lakhs (including Inventory of Rs. 50 Lakhs and Prepaid Expenses of Rs. 10 Lakhs). If Total Current Liabilities are Rs. 100 Lakhs, what is the Quick Ratio (Acid-Test Ratio)?
Quick Assets = Current Assets - Inventory - Prepaid Expenses = 160 - 50 - 10 = Rs. 100 Lakhs. Quick Ratio = Quick Assets / Current Liabilities = 100 / 100 = 1.00 : 1.
Quick Ratio = (Current Assets - Inventory - Prepaid Exp) / Current LiabilitiesThe Union Budget of India projects a Fiscal Deficit of Rs. 15,00,000 Crores and Interest Payments on past borrowings of Rs. 8,00,000 Crores for the year. What is the projected Primary Deficit?
Primary Deficit = Fiscal Deficit - Interest Payments = 15,00,000 - 8,00,000 = Rs. 7,00,000 Crores.
Primary Deficit = Fiscal Deficit - Interest PaymentsAn investor deposits Rs. 10,000 at the *beginning* of each year for 5 years in an account earning 8% interest per annum. What type of annuity is this?
An annuity where payments are made at the beginning of each period is called an 'Annuity Due'. If payments are made at the end of each period, it is an 'Ordinary Annuity'.
Which sector of the Indian economy includes activities such as agriculture, forestry, fishing, and mining, where goods are produced by exploiting natural resources directly?
The Primary Sector of an economy involves the extraction and harvesting of natural resources directly from the Earth (e.g., agriculture, mining, forestry, and fishing).
Primary Sector = Direct Natural Resource ExploitationWelcome Back
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