JAIIB AFM Mock Tests 2026: Free PDF, 20 MCQs & Answer Key
JAIIB AFM mock tests are the single fastest way to turn passive reading into real exam marks. If you are preparing for Accounting &. Financial Management for Bankers (AFM) &mdash.
Paper 3 of the JAIIB exam &mdash. This 2026 guide gives you a full practice test. A verified answer key.
A smart revision plan. And the exact mistakes that cost candidates their pass.
AFM is the paper most bankers fear. Because it mixes numericals. Ratio analysis, accounting entries and foreign exchange in one sitting.
The good news? Every one of these topics is highly predictable once you drill enough quality MCQs. That is precisely what this page is built for.
Key Takeaways
- JAIIB AFM mock tests are the best predictor of your real score &mdash. Practise before you finish the syllabus. Not after.
- AFM is calculation-heavy: master ratio analysis, BRS, depreciation, annuities and forex first.
- Attempt every test in a strict timed window to build speed. Accuracy together.
- Always confirm the latest pattern. Marks and passing criteria on the official IIBF notification.
- Pair free practice with structured mock tests and free guides for the best results.
Why JAIIB AFM Mock Tests Matter More Than Notes
The JAIIB exam. Conducted by the Indian Institute of Banking & Finance (IIBF). Rewards application, not memorisation. You can read a chapter ten times. Still freeze when a ratio question appears under a ticking clock.
Solving JAIIB AFM mock tests fixes that. They train three things at once:
- Speed — you learn to solve numericals in under a minute.
- Accuracy — you spot trick options before they trap you.
- Stamina — you stay sharp across the full paper duration.
Most importantly, a mock test shows you where you are weak. That single insight is worth more than another re-read of the textbook.
JAIIB AFM Exam Pattern 2026 (Quick Facts)
Before you attempt any practice set. Anchor your prep to the paper structure. The table below summarises the typical AFM format. Always confirm on the latest official IIBF notification. As IIBF revises details periodically.
| Particular | Detail (Confirm on IIBF Notification) |
|---|---|
| Paper | Paper 3 — Accounting & Financial Management for Bankers (AFM) |
| Conducting Body | Indian Institute of Banking & Finance (IIBF) |
| Question Type | Objective MCQs (knowledge, conceptual & numerical) |
| Marking | No negative marking (confirm on latest notification) |
| Medium | English & Hindi |
| Mode | Online (at designated test centres) |
Core AFM Topics You Must Drill
AFM rewards depth in a handful of high-weightage areas. Build your JAIIB AFM mock test practice around these clusters:
1. Accounting Fundamentals & Final Accounts
Master the accounting equation. Journal entries, rectification of errors and preparation of final accounts. Questions on Net Worth, capital structure and rectification appear almost every attempt.
2. Ratio Analysis & Financial Statements
This is the heart of AFM. Practise current ratio. Liquid ratio.
Proprietary ratio. Gearing ratio and how to back-calculate stock, working capital and drawing power. Expect multi-step numericals.
3. Bank Reconciliation Statement (BRS)
BRS questions test whether you can move correctly between cash book. Pass book balances. Learn the direction of each adjustment cold.
4. Depreciation, Inventory & Valuation
Know straight-line vs written-down value. And the average cost, FIFO and LIFO methods of stock valuation.
5. Financial Mathematics & Forex
Cover annuities. Present value. Future value and the basics of spot and forward exchange rates. These are scoring once the formulas are memorised.
Free JAIIB AFM Mock Test (20 MCQs)
Here is a complete practice set. Set a 20-minute timer. Attempt all questions honestly. And then check the verified answer key that follows. Do not peek — the value is in the struggle.
| No. | JAIIB AFM Mock Test Question |
|---|---|
| 1 | A minor 15 years of age has an FDR of Rs. 35,000 with the bank. He requests payment of the FDR before maturity. Can the bank allow it?a. Bank can allow payment before maturityb. Bank can accept the request if accompanied by a request from the guardian of the minorc. Bank can accept a request for loan and not pre-mature cancellation. As payment before maturity would amount to breaking the contract. For which he has no authorityd. Bank cannot accept the minor’s request |
| 2 | The Working Capital of a company is Rs. 1,35,000 and the current ratio is 2.5. The liquid ratio is 1.5 and the proprietary ratio is 0.75. Bank overdraft is Rs. 30,000. There are neither long-term loans nor fictitious assets. Reserves & surplus is Rs. 90,000 and the gearing ratio (Equity Capital to Preference Capital) is 1.2. Calculate stock.a. Rs. 60,000b. Rs. 90,000c. Rs. 1,35,000d. Rs. 2,25,000 |
| 3 | Forward exchange rates are useful for those who wish to _________.a. Protect themselves from the risk that the rate of exchange will change before the transaction is completedb. Gamble that a currency will fall or rise in valuec. Exchange currencies at a point of time in the futured. All of the above |
| 4 | Assets: Net Fixed Assets – Rs. 400, Inventories – Rs. 150, Cash – Rs. 50, Receivables – Rs. 150, Goodwill – Rs. 50, Total Assets – Rs. 800. Liabilities: Capital – Rs. 180, Reserves – Rs. 20, Term Loan – Rs. 300, Bank C/C – Rs. 200, Trade Creditors – Rs. 50, Provisions – Rs. 50, Total Liabilities – Rs. 800. What is the Net Worth?a. Rs. 180b. Rs. 200c. Rs. 250d. Rs. 300 |
| 5 | A firm HJK purchased items at different prices of Rs. 50, Rs. 60, Rs. 70, Rs. 80 and Rs. 90. What is the rate of valuation of the goods as per the average cost method?a. Rs. 70, being the middle itemb. Rs. 70, being the average of all itemsc. Rs. 50, being the base item to be purchasedd. Rs. 90, being the last item in the series to be purchased |
| 6 | As per extant rules for interest calculation on domestic term deposits repayable in less than 3 months. For a leap year:a. The actual number of days should be reckoned at 365 daysb. Banks are free to adopt their methodology with information provided to customersc. The actual number of days should be reckoned at 366 daysd. The actual number of days should be reckoned at 360 days |
| 7 | Ms. Aditi walks into the branch 5 minutes after opening time. She finds the counters empty, systems down and the Branch Manager absent. She questions a sub-staff. The ideal response from the staff would be:a. Express helplessness and reply in an indifferent mannerb. Tell a story that a colleague is getting married. Everybody has gone to the weddingc. Lie that the system has failed. Everybody has gone to the canteend. Apologise for the inconvenience and ask her to be seated |
| 8 | Ms. Harmeet. An NRI customer. Requested Branch Manager ‘Varun&rsquo. To open an NRE deposit by email enclosing a signed scanned letter. The deposit is not issued even after a week. Varun should:a. Advise Ms. Harmeet to contact the staff concerned directlyb. Try to cover the lapse of management and deny receiving the mailc. Promise her that he will look into the matter. Get back to her immediatelyd. Advise her that the system is overloaded. Such email requests will not be entertained |
| 9 | An NRI customer requests the Branch Manager to open an NRE deposit by email enclosing a signed scanned letter. The deposit is not issued even after a week. The Branch Manager should:a. Advise the NRI customer to contact the staff concerned directlyb. Try to cover the lapse and deny receiving the mailc. Promise to look into the matter. Get back to him/her immediatelyd. Advise that the system is overloaded. Email requests will not be entertained |
| 10 | A mix of debt and equity is known as:a. Organisational structure of the firmb. The financial structure of the firmc. The capital structure of the firmd. Bond equity structure of the firm |
| 11 | Which of the following is treated as a Corrective Action Plan (CAP) for SMA-2 accounts? (i) Rectification & Regularization of account. (ii) Restructuring of account, (iii) Recovery of overdue.a. Only (i) & (ii)b. Only (i) & (iii)c. Only (ii) & (iii)d. (i), (ii) & (iii) |
| 12 | Firm ‘GHI&rsquo. Has a credit balance as per the bank column of cash book &ndash. Rs. 13,000. Bank interest on overdraft appeared only in the passbook – Rs. 2,600. Cheques deposited but not collected by the bank are worth Rs. 5,000. The balance as per the pass book is ________.a. Rs. 20,600 (Dr.)b. Rs. 18,500 (Dr.)c. Rs. 18,500 (Cr.)d. Rs. 15,600 (Dr.) |
| 13 | Firm M/S AKHILESH maintains a current account with CBL Bank. It has 9 partners, one very old and dormant. The account is operated jointly by 2 partners, Noor and Mehtab. A cheque of Rs. 1,650 in favour of the State Electricity Board is presented through clearing. CBL Bank receives a stop-payment from the dormant partner.a. Because the cheque is of a small amount, it should be paidb. Because the cheque is in favour of an important payee. Dues should be paidc. The cheque should be paid. As the stop-payment instruction was received from a dormant partnerd. The cheque should not be paid. As the dormant partner also has the requisite authority to stop operations of the account |
| 14 | The foreign exchange spot market provides _________ that permit payments to flow among individuals. Businesses and other organizations who prefer to use different currencies.a. Trade servicesb. Government authorityc. Clearing servicesd. Technological services |
| 15 | Mr. Kashav approaches a bank for a housing loan. The bank obtains a report on him from Credit Reference Agencies. If Mr. Kashav asks for a copy of the report. The correct procedure is:a. The bank can refuse, stating the information is confidentialb. The bank can share the information if the customer requests. Pays for the schemec. Mr. Kashav cannot ask for a copy of the reportd. Information has not been obtained from Credit Reference Agencies for housing loans |
| 16 | With a 25% margin on stocks. A firm’s drawing power for its cash credit (CC) account increased from Rs. 4,50,000 to Rs. 7,50,000. What is the change in stock level?a. Rs. 2,00,000b. Rs. 3,00,000c. Rs. 4,00,000d. Rs. 5,00,000 |
| 17 | Which statements are true about Horizontal Analysis? (i) It does not examine the periodical trend. (ii) It is useful for long-term analysis. (iii) It is useful for long-term planning.a. Only (i) and (ii)b. Only (i) and (iii)c. Only (ii) and (iii)d. (i), (ii) and (iii) |
| 18 | Unless otherwise stated, preference shares are always deemed to be _________.a. Cumulative, participating and non-convertibleb. Cumulative, non-participating and non-convertiblec. Non-cumulative, participating but non-convertibled. Non-cumulative, non-participating and non-convertible |
| 19 | If the current ratio is above 2:1, it means the firm ________. (i) Has a very high investment in current assets. (ii) Does not require any working capital from the bank. (iii) Has very high liquidity.a. Only (i) and (ii)b. Only (i) and (iii)c. Only (ii) and (iii)d. (i), (ii) and (iii) |
| 20 | Freight expenses for carrying machinery were posted to the Travelling A/c. The rectification in the trial balance will be _________.a. Debit Machinery A/c and credit Travelling A/cb. Credit Machinery A/c and debit Travelling A/cc. Credit Profit & Loss A/c and debit Travelling A/cd. Debit Profit & Loss A/c and credit Travelling A/c |
JAIIB AFM Mock Test — Verified Answer Key
Score yourself out of 20. Anything below 12 means revisit the topic, not just the question. Use the table to spot your weak clusters.
| Q | Ans | Q | Ans | Q | Ans | Q | Ans |
|---|---|---|---|---|---|---|---|
| 1 | A | 6 | C | 11 | D | 16 | C |
| 2 | C | 7 | D | 12 | A | 17 | C |
| 3 | D | 8 | C | 13 | D | 18 | B |
| 4 | B | 9 | C | 14 | C | 19 | D |
| 5 | B | 10 | C | 15 | A | 20 | A |
How to Use JAIIB AFM Mock Tests the Smart Way
Practising randomly wastes effort. Follow this proven. Step-by-step routine to convert JAIIB AFM mock tests into guaranteed marks:
- Test first, then learn. Attempt a mock even before finishing a chapter. The gaps you discover make your reading targeted.
- Always time yourself. Give each question roughly a minute. Speed is a skill you build only under pressure.
- Analyse every wrong answer. Write down the concept you missed — not just the correct option.
- Re-attempt after 48 hours. Spaced repetition locks numericals into long-term memory.
- Track your score trend. A rising graph across attempts is the clearest sign you are exam-ready.
Want a structured set beyond this page? Explore our full library of mock tests and supporting free guides for every JAIIB paper.
Common Mistakes in JAIIB AFM (Avoid These)
Thousands of candidates lose AFM by a handful of avoidable errors. Watch for these:
- Ignoring numericals. AFM is calculation-heavy. Skipping ratio and BRS sums is the fastest route to failure.
- Memorising without practising. You cannot “remember&rdquo. A multi-step ratio problem — you must drill it.
- Reading the question carelessly. Words like credit balance, margin and dormant partner change the entire answer.
- No time management. Spending five minutes on one sum starves easier marks elsewhere.
- Relying on outdated material. Always cross-check rules. The exam pattern on the latest official IIBF notification.
JAIIB AFM Preparation Strategy: A Simple 30-Day Plan
If your attempt is close, structure beats panic. Here is a clean framework:
- Days 1–10: Cover accounting basics, final accounts and ratio analysis. Solve one mock daily.
- Days 11–20: Focus on BRS. Depreciation, inventory valuation and financial mathematics (annuities, PV/FV).
- Days 21–27: Forex basics. Capital structure and full-length JAIIB AFM mock tests in timed mode.
- Days 28–30: Revise formulas. Re-attempt your weakest mocks, and review every error log.
Where to Get More Free JAIIB AFM Mock Tests
This page is your starting point, but consistent practice needs volume. You can access many more free. Premium AFM practice sets through Learning Sessions:
- Attempt unlimited online mock tests after a free sign-up.
- Read topic-wise free guides for AFM concepts and shortcuts.
- Combine practice with full video courses for complete syllabus coverage.
Frequently Asked Questions (FAQ)
Are these JAIIB AFM mock tests free?
Yes. The full 20-question practice set and verified answer key on this page are completely free. You can access many more free mock tests by signing up on the Learning Sessions platform.
Is AFM the hardest paper in JAIIB?
Many candidates find AFM the toughest because it is calculation-heavy. Covering ratio analysis, BRS, depreciation and forex. With regular JAIIB AFM mock tests. However, it becomes one of the most scoring papers.
How many mock tests should I solve before the JAIIB AFM exam?
There is no fixed number. But aim for consistent daily practice. At least several full-length timed mocks in your final two weeks. Quality analysis of each test matters more than raw quantity.
Is there negative marking in JAIIB AFM?
JAIIB papers typically have no negative marking. So you should attempt every question. Always confirm the current rule on the latest official IIBF notification before your exam.
In which language is the JAIIB AFM exam available?
The JAIIB AFM exam is generally available in both English and Hindi. Practise in the medium you intend to attempt so the terminology feels natural on exam day.
Final Word: Practice Today, Pass Tomorrow
AFM is not about talent — it is about reps. Every JAIIB AFM mock test you finish sharpens your speed. Exposes a weak spot and pushes your score higher. The candidates who clear AFM are simply the ones who practised the most. The smartest.
Start with the test above. Log your mistakes, and come back stronger tomorrow. Your JAIIB success is built one solved question at a time. You have got this.
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