Back Office Functions / Handling Unreconciled Entries in Banks – Quiz 1

Back Office Functions / Handling Unreconciled Entries in Banks is the Tenth Unit (Unit 10) under Module A: Accounting Principles and Processes of Paper – III (Accounting & Financial Management for Bankers)

If you are appearing for the Upcoming JAIIB Exams, it is important to understand the fundamental concepts of the Topics and clear your doubts. We have prepare and collected some fundamental questions and answers in the form of MCQ Questions and Answers arranged into multiple Quizzes having 10 Questions in each Quiz. It can help you to understand the topics. A solid fundamental understanding will build your confidence and encourage you to think critically and enables you to answer the JAIIB Questions correctly in the Exam and increase your chances to pass the exam with flying colors. It is advisable to practice these Questions and Answers on regular basis to raise your confidence Level.

Practice MCQ Question and Answer – Back Office Functions / Handling Unreconciled Entries in Banks

Quiz 1

1. What is the primary function of the back office in a financial services company ?

  1. Client-facing interactions
  2. Administration and support
  3. Sales and marketing
  4. External auditing




….
Answer is (b)
Administration and support

2. What are the functions typically performed by the back office to support front office activities ?

  1. Conducting market research
  2. Managing regulatory compliance
  3. Performing bookkeeping and accounting tasks
  4. Processing transactions and maintaining general ledger




….
Answer is (c)
Managing regulatory compliance, Performing bookkeeping and accounting tasks and Processing transactions and maintaining general ledger

3. What tasks are typically part of the back office’s responsibilities in bookkeeping and accounting ?

  1. Preparation of Financial Statements
  2. Commission and prepayment charges
  3. Identifying KYC gaps
  4. Calculation and posting of interest




….
Answer is (a)
Preparation of Financial Statements

4. Which tasks are associated with deposits that the back office typically handles ?

  1. Transaction processing
  2. Calculating and posting of interest
  3. Handling client inquiries
  4. Service charges




….
Answer is (d)
Calculating and posting of interest and Service charges

5. What are the responsibilities related to loans that fall under the back office’s purview ?

  1. Calculating and posting of interest
  2. Processing end-to-end loan originations
  3. Managing default and collections
  4. Identifying KYC gaps




….
Answer is (c)
Calculating and posting of interest, Processing end-to-end loan originations and Managing default and collections

6. Which of the following statement is true with relation to back office ?

  1. Back offices must be physical part of the bank branch
  2. Back offices need not to be part of the bank branch
  3. Back offices may be located away from branches
  4. Back offices must be located away from branches




….
Answer is (b)
Back offices need not to be part of the bank branch and Back offices may be located away from branches

7. What is/are the key advantageous of computerization in banks with regard to back office operations ?

  1. Cost Savings
  2. Many activities of Back Office has now shifted to Front Office
  3. Economies of scale has Improved
  4. Focus of Front Office on Sales and customer servicing has Increased




….
Answer is (b)
It has resulted in cost savings and economies of scale as also freeing the time for the front office staff to focus on sales and servicing functions

8. Which functions part of the back office’s role in Treasury operations and Forex ?





….
Answer is (a)
Controlling confirmations and settlement transactions

9. Which tasks are associated with regulatory compliance that the back office typically handles ?

  1. Reconciliation of inter-office and transaction entries
  2. Identifying KYC gaps
  3. Ensuring compliance with legal requirements
  4. Managing customer grievances




….
Answer is (c)
Identifying KYC gaps and Ensuring compliance with legal requirements

10. What functions are associated with e-banking that the back office performs ?

  1. Posting of prepayment charges
  2. Handling transactions through ATMs
  3. Ensuring cybersecurity measures
  4. Remittances




….
Answer is (d)
Handling transactions through ATMs

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Quiz Numbers

1

Read More: MCQ Type Questions and Answers from Paper – III (Accounting & Financial Management for Bankers)

Module A: Accounting Principles and Processes

Module B – Financial Statements and Core Banking Systems

  • Balance Sheet Equation
  • Preparation of Final Accounts
  • Company Accounts – I
  • Company Accounts – II
  • Cash Flow & Funds Flow
  • Final Accounts of Banking Companies
  • Core Banking Systems & Accounting in Computerised Environment

Module C – Financial Management

  • Financial Management – An Overview
  • Ratio Analysis
  • Financial Mathematics – Calculation of Interest & Annuities
  • Financial Mathematics – Calculation of YTM
  • Financial Mathematics – Forex Arithmetic
  • Capital Structure and Cost of Capital
  • Capital Investment Decisions/Term Loans
  • Equipment Leasing/Lease Financing
  • Working Capital Management
  • Derivatives

Module D – Taxation and Fundamentals of Costing

  • Taxation: Income Tax/TDS/Deferred Tax
  • Goods & Services Tax
  • An Overview of Cost & Management Accounting
  • Costing Methods
  • Standard Costing
  • Marginal Costing
  • Budgets and Budgetary Control