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 the Indian Economy | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Home Loan Loan-To-Value (LTV) Ratio | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Banker's Right of Set-Off | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| EMI to NMI Ratio Eligibility | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| SARFAESI Statutory Timelines | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Operating Cycle & Cash Conversion Days | 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 |
| Agent and Principal Relationship | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Hypothecation vs Pledge vs Mortgage | 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 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 ExploitationA customer wishes to purchase a residential property valued at Rs. 50 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. 50 Lakhs, the ceiling is 80%, yielding Rs. 40.00 Lakhs.
Max LTV (Loan <= 30L) = 90%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 salaried applicant has a Net Monthly Income (NMI) of Rs. 1,00,000. If the bank's retail credit policy allows a maximum EMI-to-NMI ratio of 60% for this income slab, what is the maximum monthly EMI the borrower can service across all loans?
Maximum Permissible Monthly EMI = NMI * Max Ratio = Rs. 1,00,000 * 60% = Rs. 60,000.
Max EMI = NMI * EMI-NMI Ratio %Under Section 13(2) of the SARFAESI Act, 2002, how much notice time must a secured creditor bank give the defaulting borrower to discharge their liabilities before taking possession of security?
Section 13(2) mandates a 60-day demand notice. If the borrower fails to pay within 60 days, the bank can proceed under Section 13(4) to take physical possession of assets, subject to a 30-day public sale notice.
A company has Inventory Holding Period of 60 days, Debtors Collection Period of 30 days, and Creditors Payment Period of 20 days. What is the Net Cash Conversion Cycle (CCC)?
Gross Operating Cycle = Inventory Days + Debtors Days = 60 + 30 = 90 Days. Net Cash Conversion Cycle (CCC) = Gross Operating Cycle - Creditors Payment Days = 90 - 20 = 70 Days.
CCC = Inventory Days + Debtors Days - Creditors DaysUnder 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. 17,00,000 Crores and Interest Payments on past borrowings of Rs. 7,00,000 Crores for the year. What is the projected Primary Deficit?
Primary Deficit = Fiscal Deficit - Interest Payments = 17,00,000 - 7,00,000 = Rs. 10,00,000 Crores.
Primary Deficit = Fiscal Deficit - Interest PaymentsWhen 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).
Which type of security charge is created when moveable goods remain in physical possession of the borrower, but equitable constructive possession and right to seize upon default are granted to the bank?
Hypothecation creates a charge on moveable property without delivery of physical possession (the borrower retains possession for business operations). In contrast, Pledge requires physical or constructive delivery of goods to the banker.
Hypothecation = Charge on Moveables with Borrower PossessionWelcome Back
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