Test: Retail Banking & Wealth Management - 2 - Bank Exams MCQ

Credit is used for the intended purpose

The payment of interest and instalments/principal is as per the agreed terms

The borrower gives all such information about security/hypothecation and conduct of business from time to time as per requirement

Neither the bank nor the borrower takes steps that will jeopardize the relationship

PoS terminals can be used for balance inquiry, while ATMs cannot

ATMs can also be used for other services besides payment, while PoS terminals are predominantly used for payment

PoS terminals are connected directly to a central computer for authorization, while ATMs are not

There is no difference between a PoS terminal and an ATM

To increase the number of branches

To provide end-to-end solutions for processing retail loans

To reduce the number of retail loan applications

To limit the number of retail loan disbursements

Both (i) and (ii)

Both (i) and (iii)

(i), (ii), and (iii)

All of the above

Marketing research, marketing intelligence, and external accounting

Marketing research, marketing intelligence, and internal accounting

Marketing research, sales promotion, and internal accounting

Marketing research, sales promotion, and external accounting

A measure of how much revenue a company generates

A measure of how efficiently a company generates profit relative to its expenses

A measure of a company's ability to produce goods and services

A measure of a company's total assets and liabilities

Only (i)

Both (ii) and (iv)

(i), (ii) and (iii)

All of the above

To survive in the market

To achieve business objectives

To replace existing products that are in the growth phase

To meet changing customer needs

To expand lending to lower-income groups

To lend to affluent customers

To know and manage risk in retail loans

To price loans accurately

No policies are required to be formulated for entering into the CLM

Only the NBFC is required to formulate a Board approved policy for entering into the CLM

Both banks and NBFCs are required to formulate Board approved policies for entering into the CLM and place the approved policies on their websites

Banks are required to formulate a Board approved policy for entering into the CLM, but the NBFC is not required to do so

Reducing the unit cost-to-value ratio of each activity or transaction

Increasing the number of staff productivity

Improving the quality of customer service

Increasing the number of branches

Interaction with the most valued customers

Customization of the bank's products and services for different customer segments

Identification of customers

Classification of customers

Decisions are based on information available

MIS systems are a legal requirement for businesses

It saves time and money for the organization

All of the above

No loan can be given for properties meant for residential use but which the applicant intends to use for commercial purposes

The property should be valued by the borrower's lawyer

The title of the borrower to the property offered as security does not need to be verified by the bank's lawyer

None of the above

Alternative asset

Bonds

Portfolio management services

Retirement planning

The introduction of mobile banking primarily through SMS

The establishment of computerized inter-connectivity across bank branches

The offering of third-party products such as mutual funds and insurance

The launch of smartphone Apps

It eliminated the need for checks

It reduced the waiting period for check processing

It made mobile banking more difficult

It increased the popularity of the branch experience

To perform tasks in the automotive industry

To channel key information from a wide variety of data and draw conclusions

To replace human workers in the workplace

To boost efficiency, productivity, and reliability

AML software

Loan Origination System

Credit Card Processing System

Core Banking solutions

To collect data from member banks for the survey

To provide technical assistance to member banks

To rate the member banks based on the data collected

To publish reports on the financial performance of member banks

To increase operational efficiencies

To reduce competition in the market

To increase employee satisfaction

To reduce the number of NPAs

Anything offered by a bank to its customers

Anything that satisfies the customer's need

Anything that provides a return on investment

Anything that provides satisfaction, use, and return desired by the customer

Annual accretion to recognized Provident Fund

Leave encashment

Income received in advance

Salary paid to a partner by the firm

It helps to improve financial performance

It ensures that customers are satisfied with the service provided

It reduces the need for computerization

It helps to reduce competition in the financial service industry

BCSBI enforces compliance with the Codes and Standards by imposing penalties on banks

BCSBI functions as a regulatory body to ensure compliance with the Codes and Standards

BCSBI monitors and ensures adherence to the voluntarily adopted Codes and Standards by banks

BCSBI provides financial assistance to banks to implement the Codes and Standards

DSAs are appointed by banks to source business for them on a fee basis

DSAs are primarily engaged in sourcing Credit Cards and Retail Loans

Mis-selling by DSAs is rampant in the credit card space

Public sector banks rely on DSAs to sell their wholesale loan products

Because it refers to the location of bank branches

Because it adds tangibility to the intangibility of banking services

Because the effectiveness of the product depends on the effectiveness of the people delivering the product

Because it helps in developing efficient packaging for banking services

The consolidated amount receivable in amortization of the MRR

The borrower-wise accounts for the proportionate amounts retained in respect of each loan

The overdue status of loans transferred

None of the above

The bank will not help the customer in making a complaint

The customer can approach the Principal Nodal Officer if the complaint is unresolved at the branch level

The bank will not provide an acknowledgement if a written complaint is hand-delivered

The bank will send the final response within 15 days of receipt of the complaint

To construct a portfolio

To evaluate the performance of securities

To measure the risk and return of securities

To revise the portfolio