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JAIIB · Principles & Practices of Banking · Module D — Ethics in Banks and Financial Institutions

JAIIB PPB Unit 51 — Ethics, Business Ethics & Banking: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 2 of the November 2026 cycle (22 November 2026)

This page is a free slice of our JAIIB PPB question bank for Unit 51 — Ethics, Business Ethics & Banking (Module D — Ethics in Banks and Financial Institutions). The Mock Centre holds 34 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

PPB · Module D34 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. Values = stable long-lasting importance-beliefs; ethics = prescriptive moral-standards discipline (universal); ethics defines right/wrong, values define significance.
  2. Seven myths — key realities: ethics = managing values + conflict resolution; CSR = only ONE facet; ethics CAN be managed (mostly indirectly).
  3. Seven principles: dignity, fairness (no price-fixing), honesty (integrity = its consistency), openness, reputation/goodwill (costliest asset), prudence, concern for others.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Which is NOT a principle of ethics?
Why (a): Profit-at-any-cost is the anti-principle; the ethics list runs fairness, dignity, integrity, honesty, goodwill.
Question 2 of 5
VALUES are best defined as:
Why (a): VALUES are STABLE BELIEFS ABOUT WHAT MATTERS — enduring importance-judgments that guide choices.
Question 3 of 5
The three stages of an ETHICAL CRISIS are:
Why (a): The three stages of an ETHICAL CRISIS are PRE-CRISIS, CRISIS AND POST-CRISIS — the lifecycle for crisis-management planning.
Question 4 of 5
Business ethics helps banking in:
Why (d): Business ethics helps banking in ALL OF THE ABOVE — navigating dilemmas, guarding reputation and avoiding future risk.
Question 5 of 5
The FIRST and FOREMOST principle of ethical banking is:
Why (a): The FIRST and FOREMOST principle of ethical banking is TRUST — trust is the currency of the whole business.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
EthicsValuesRight/wrong vs important/significant
EthicsCSRThe whole vs one facet (Myth 7)
Practise all 34 questions on Unit 51. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,280 PPB questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.