Free 2026 JAIIB Mock Exam
JAIIB Paper 1: Indian Economy & Indian Financial System
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 |
|---|---|---|---|
| Sectors of Economy | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Cash Reserve Ratio (CRR) Calculation | 0 / 2 | 0% | WEAK - REVISION NEEDED |
| Banker's Right of Set-Off | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| PSL Target for Domestic Scheduled Commercial Banks | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Primary Deficit calculation | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Primary Deficit Calculation | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Sectors of the Indian Economy | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Agent and Principal Relationship | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Home Loan Loan-To-Value (LTV) Ratio | 0 / 1 | 0% | WEAK - REVISION NEEDED |
Detailed Solved Question Key & Explanations
Which sector of the Indian economy includes activities such as agriculture, forestry, fishing, and mining, where goods are produced by exploiting natural resources?
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 ExploitationA scheduled commercial bank has Net Demand and Time Liabilities (NDTL) of Rs. 1700 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 = 1700 * 4.5% = Rs. 76.50 Crores. CRR balances do not earn any interest.
CRR Balance = NDTL * CRR %For a bank to exercise its Right of Set-Off between a customer's debit balance and credit balance accounts, which of the following is a mandatory legal requirement?
Set-off requires 'mutuality of debt', meaning the accounts must be held by the same customer in the same right and capacity (e.g. sole debt against sole deposit). A bank cannot set off a customer's sole debt against their trust or partnership account.
Under RBI guidelines, what is the mandatory overall Priority Sector Lending (PSL) target for Domestic Scheduled Commercial Banks (excluding RRBs and Small Finance Banks) as a percentage of Adjusted Net Bank Credit (ANBC)?
Domestic Scheduled Commercial Banks and Foreign Banks with 20 branches and above must achieve an overall Priority Sector Lending target of 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher.
Overall PSL Target = 40% of ANBC / CEOBEThe Union Budget of India projects a Fiscal Deficit of Rs. 12,00,000 Crores and Interest Payments on past borrowings of Rs. 6,00,000 Crores for the year. What is the projected Primary Deficit?
Primary Deficit = Fiscal Deficit - Interest Payments = 12,00,000 - 6,00,000 = Rs. 6,00,000 Crores.
Primary Deficit = Fiscal Deficit - Interest PaymentsThe Union Budget of India projects a Fiscal Deficit of Rs. 16,00,000 Crores and Interest Payments on past borrowings of Rs. 6,00,000 Crores for the year. What is the projected Primary Deficit?
Primary Deficit = Fiscal Deficit - Interest Payments = 16,00,000 - 6,00,000 = Rs. 10,00,000 Crores.
Primary Deficit = Fiscal Deficit - Interest PaymentsWhich 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 ExploitationWhen a bank collects cheques, dividend warrants, or bills of exchange on behalf of a customer, what is the legal relationship between the bank and the customer during the transit/collection phase?
While collecting cheques or bills for collection, the bank acts as an Agent for the customer (Principal). Once funds are realized and credited to the operative account, the relationship changes to Debtor (Bank) and Creditor (Customer).
A customer wishes to purchase a residential property valued at Rs. 20 Lakhs. According to RBI guidelines on Loan-To-Value (LTV) limits for individual home loans, what is the maximum home loan amount the bank can sanction?
Under RBI rules, LTV limits for home loans are: (a) Up to Rs. 30L = 90%; (b) Rs. 30.01L to Rs. 75L = 80%; (c) Above Rs. 75L = 75%. For a property value of Rs. 20 Lakhs, the ceiling is 90%, yielding Rs. 18.00 Lakhs.
Max LTV (Loan <= 30L) = 90%A scheduled commercial bank has Net Demand and Time Liabilities (NDTL) of Rs. 1200 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 = 1200 * 4.5% = Rs. 54.00 Crores. CRR balances do not earn any interest.
CRR Balance = NDTL * CRR %Welcome Back
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