JAIIB AFM Previous Year Question Papers: Practice MCQs

IIBF 18 June 2026 · 10 min read

#afb previous year papers #afm exam preparation #bank reconciliation #bond valuation #depreciation #jaiib afm #jaiib mcq #jaiib paper 3 #jaiib previous questions #ratio analysis #time value of money

JAIIB AFM Previous Year Question Papers

The Accounting and Financial Management for Bankers (AFM) paper is one of the most challenging subjects in the JAIIB examination conducted by the Indian Institute of Banking and Finance (IIBF). Studying previous year question papers and recollected questions is one of the most effective ways to understand the type. Pattern, and difficulty level of questions asked in the exam. This resource compiles important MCQs from earlier AFB (old syllabus) papers that remain relevant to the current AFM syllabus.

JAIIB is conducted twice a year by IIBF; visit iibf.org.in for the latest exam schedule.

Key Points

Previous year AFB questions help identify recurring topics such as Bank Reconciliation, Depreciation, and Ratio Analysis.
Many fundamental concepts from the old AFB syllabus continue to be tested under the current AFM syllabus.
The exam tests both conceptual understanding and numerical problem-solving ability.
Practising 20+ MCQs per topic builds speed and accuracy for the time-bound JAIIB exam.
Correct understanding of Golden Rules of Accounting, BRS, and financial ratios is essential to score well.

About the JAIIB AFM Paper

The AFM paper (Paper 3 of JAIIB) covers topics across modules including Business Mathematics. Principles of Bookkeeping and Accountancy, Financial Statements, Banking Operations, and Ethics in Banking. Questions are objective type (MCQ), with a total of 120 questions carrying 120 marks. The passing mark is 50 out of 100 in the scaled score. Duration is 2 hours.

Important JAIIB AFM MCQs from Previous AFB Papers

No.	Question	Answer
1	Federal Reserve Board is the regulator of the banking system in: 1. India 2. Europe 3. United States 4. Britain	c
2	A bank can hold as mortgagee, pledgee, or absolute owner of shares of a company, maximum to the extent of: 1. 30% of the paid-up capital of the bank and 30% of the paid-up capital of the company, whichever is lower 2. 30% of the paid-up capital of the bank and 30% of the paid-up capital of the company, whichever is higher 3. 30% of the paid-up capital of the bank and 30% of the paid-up capital of the company, whichever is higher 4. 30% of paid-up capital + reserves of the bank and 30% of paid-up capital of the company, whichever is lower	a
3	When a manufacturer keeps the product price at a higher level so that buyers perceive the product to be of better value and quality, this is called _______ pricing. 1. Geographical pricing 2. Promotional pricing 3. Market skimming pricing 4. Psychological pricing	d
4	Tele-banking facility is provided by banks through bank computers based on which of the following: 1. Voice processing 2. Brick-and-mortar processing 3. Internet processing 4. Virtual banking	a
5	Under the Prevention of Money Laundering Act 2002, banks are required to maintain a record of cash transactions of the value of: 1. Rs.50,000 and above 2. Rs.1 lac and above 3. Rs.10 lac and above 4. Above Rs.10 lac	d
6	A microenterprise with sales of Rs.36 lac and Rs.50 lac for the last two years has projected sales of Rs.60 lac and wants to enhance its bank limit from Rs.8 lac to Rs.11 lac. What amount of limit can be sanctioned and what is the margin requirement: 1. Limit Rs.10 lac, margin Rs.2.50 lac 2. Limit Rs.12 lac, margin Rs.3.00 lac 3. Limit Rs.12 lac, margin Rs.5.00 lac 4. Limit Rs.15 lac, margin Rs.2.50 lac	b
7	Bank's obligation to pay the cheque drawn by the customer under Section 31 of the NI Act exists in which of the following circumstances: 1. When the amount in words and figures differs 2. When there is a notice of death of the customer 3. When an attachment order has been received 4. When the signatures of the drawer are genuine but differ	a
8	Two companies are merged. One of these is a supplier of goods to the other. This merger is known as: 1. Horizontal merger 2. Vertical merger 3. Conglomerate merger 4. Concentric merger	b
9	Which of the following may NOT be part of the Bank Reconciliation process? 1. Interest on overdraft 2. Dishonor of cheque 3. Cash has been drawn from a bank 4. Cheque deposited but not collected	c
10	The Indian insurance industry is run on globally acceptable standards. IRDA carries the following functions — which one is NOT correct: 1. Registration of insurance 2. Solvency margins of insurance 3. Conduct of reinsurance business 4. Functions as Insurance Ombudsman	d
11	Which of the following is true? 1. Bank Reconciliation Statement (BRS) is an account. 2. BRS is prepared by the bank. 3. BRS shows causes of disagreement between the cash book and passbook. 4. BRS shows only excess cash book over passbook.	c
12	Direct deposit by a customer in the bank: 1. Shows a higher passbook balance than cash book. 2. Shows a lesser passbook balance than cash book. 3. Shows no difference. 4. None of the above.	a
13	A document executed outside India requires payment of stamp duty in India. The duty can be paid on this document within: 1. Before it is used in India 2. Immediately when the document enters India 3. Within 4 months from the date of its execution abroad 4. Within 3 months of its entry into India	d
14	A customer placed funds with the bank for purchase of securities. The bank started the purchase but failed before completing the entire purchase. The relationship of the customer with the bank is that of: 1. Agent-Principal 2. Bailor-Bailee 3. Beneficiary-Trustee 4. Creditor-Debtor	c
15	The sales return of Rs.1,000 from Vijay was wrongly entered in the purchase book. The rectification is: 1. Debit sales to the extent of Rs.2,000. 2. Credit purchases to the extent of Rs.2,000. 3. Credit Vijay Rs.2,000, debit sales and purchases to the extent of Rs.1,000 each. 4. Debit sales return by Rs.1,000 and credit purchases by Rs.1,000.	d
16	In wholesale banking, banks normally do NOT deal with which of the following: 1. Corporates including multinationals 2. Trading houses 3. Prime public sector companies 4. None of the above	d
17	Suspense account is NOT used in which of the following cases? 1. Before trial balance. 2. After trial balance. 3. Before final accounts. 4. None of the above.	a
18	Which of the following is true? 1. Nominal accounts always have credit balances. 2. Real accounts always have debit balances. 3. The debit balance in the ledger account is a credit balance in the trial balance. 4. P&L account appears in the trial balance.	b
19	Global depository receipts are listed on _____ stock exchanges: 1. American 2. European 3. Asian 4. Indian	b
20	Under the on-site model, banks are evaluated by RBI based on CAMELS parameters. Which among the following does NOT match: 1. C – Capital and reserves of the bank 2. A – Asset quality 3. E – Earning 4. L – Liquidity	a

High-Frequency Topics in JAIIB AFM

Based on recollected questions from past exam sessions, the following topics appear frequently in the AFM paper:

Bank Reconciliation Statement (BRS): Causes of difference between cash book and passbook, preparation of BRS.
Depreciation: Straight Line Method (SLM), Written Down Value (WDV), Sum of Digits method — formulae and numerical problems.
Ratio Analysis: Current Ratio, Quick Ratio, Debt-Equity Ratio, and their interpretation for credit appraisal.
Time Value of Money: Present Value, Future Value, PVIF, PVIFA tables, annuity calculations.
Bond Valuation: Current Yield, Yield to Maturity (YTM) — formula and numerical problems.
Rectification of Errors: Types of errors, journal entries for rectification, Suspense Account.
Types of Accounts: Real, Personal, Nominal — Golden Rules of Accounting.
Capital Budgeting: Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR).

Exam Pattern — JAIIB AFM Paper

Parameter	Details
Total Questions	120 MCQs
Total Marks	120
Duration	2 hours (120 minutes)
Passing Marks	45 out of 120 (scaled to 50 out of 100)
Negative Marking	None
Mode	Online (Computer-based)

FAQ: JAIIB AFM Previous Year Questions

Q1. Are the old AFB syllabus questions still relevant for the new AFM syllabus?

Yes. Many foundational topics such as depreciation methods. Bank reconciliation, types of accounts, ratio analysis, and time value of money remain common between the old AFB and current AFM syllabi. Practising old questions gives you exposure to question patterns and difficulty levels.

Q2. How many questions come from numerical topics in the JAIIB AFM exam?

Typically, 30 to 40 percent of the AFM paper consists of numerical or application-based questions. Topics like bond valuation, depreciation, NPV, compound interest, and ratio analysis are common sources of numericals.

Q3. What is the best strategy to use previous year papers for JAIIB AFM preparation?

First, complete the chapter-wise study of the AFM syllabus. Then attempt chapter-wise MCQs from previous papers. Finally, attempt full-length mock tests to build exam temperament and time management skills.

Q4. How many previous year papers should I solve before the JAIIB AFM exam?

Solving at least 3 to 5 full sets of recollected question papers, along with 500+ chapter-wise MCQs, is recommended for a thorough preparation. Focus more on understanding concepts than memorising answers.

Q5. Is there negative marking in the JAIIB AFM exam?

No, there is no negative marking in JAIIB examinations. Candidates should attempt all 120 questions even if they are unsure, as unattempted questions do not earn marks but wrong answers also do not deduct marks.

Conclusion

Practising JAIIB AFM previous year and recollected questions is a proven strategy to crack the Accounting and Financial Management for Bankers paper. The questions presented above cover core topics like BRS. Types of accounts, depreciation, mergers, and banking regulations — all of which continue to be tested in the current syllabus. Regular practice combined with conceptual clarity is the key to clearing the AFM paper in a single attempt. Visit iibf.org.in for the official exam schedule and syllabus updates.

For more on jaiib afm previous year question papers, see the official IIBF circulars and our chapter-wise free notes on iibf.store.

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in

JAIIB AFM Previous Year Question Papers: Practice MCQs