Test: Retail Banking & Wealth Management - 5 - Bank Exams MCQ

Tax Saving Mutual Funds allow for exemptions up to Rs. 1 lakh per annum under Section 80C.

The output subsystems utilize the databases to produce marketing management information, which is used by marketing managers to make decisions on pricing, products, advertising/promotion, distribution, and packaging, under the constraints imposed by economics, the government, competitors and the customer needs.

The integration of functional elements in a marketing organization is best achieved through the satisfaction of customers' objectives. The ultimate goal of a marketing organization is to satisfy customers' wants and needs at a profit. Firms that cannot outperform their competitors in satisfying the customers are destined to fail.

Offering as many products as possible is not an effective strategy, as it may overwhelm the customer and not address their specific needs. Cross-selling is more relationship-based than transaction-based, as the success of cross-selling depends on building a strong relationship with the customer, and the strategies for cross-selling should involve input and feedback from staff at all levels, not just higher-level executives.

Net interest margins are on the decline, putting pressure on bank spreads and bottom lines. As a result, banks are looking for alternative sources of income, such as fee-based models, to improve their financial performance.

Analyzing the existing information processes is important to integrate them into the CRM system and suitable restructuring is essential for the r implementation of the CRM systems in the bank.

According to IRDA guidelines, there should not be any deviation in the defined group for which group policy is purchased by the bank from the insurer. This means that the group for which the policy is purchased must be clearly defined and cannot be changed at any time.

The advantage of offering fixed deposits with built-in overdraft facilities is that it allows the depositors to access funds beyond the balance of their fixed deposit account, effectively turning the fixed deposit into a cash credit account. This offers greater flexibility and convenience to depositors who may need access to funds in case of emergencies or unforeseen expenses without having to prematurely break the fixed deposit and lose out on interest.

BCSBI trains bank employees about the Banking Codes to ensure that banks adhere to the Codes and Standards voluntarily adopted by them.

Every ARC is required to hold a minimum of 15% of the security receipts issued by them under each scheme on an ongoing basis till the redemption of all the security receipts issued under each scheme.

Banks can only earn more net interest income by increasing the number of loans that it makes compared with the amount of their bank capital.

Under Section 54F, the property needs to be purchased either one year before the sale or two years after the sale of the property.

Section 80CCD (2) applies only to salaried individuals. Under this section, a deduction up to of 10% of basic salary plus dearness allowance is allowed for benefit in the taxable income.

Retail loans are the backbone of the revenue streams of banks, and they constitute as high as 40 to 45 per cent of the total asset base.

The retail bank should address the "Process" P to improve the customer experience with its online banking services. Process refers to the steps involved in delivering a service, and in this case, the technical issues suggest that there are flaws in the online banking system's processes that need to be addressed. By improving the process, the bank can ensure that its online banking services function smoothly and efficiently, providing customers with a better experience. The other Ps (Product, Promotion, and Price) may not be directly related to the technical issues experienced by customers when using the online banking platform.

The ticket size of loans in retail banking is low because retail banking targets the individual segment, whereas, in corporate banking, the ticket size is high because it deals mainly with corporate clients.

Banks receive a commission for acting as corporate agents and third-party service providers, which improves their fee-based income.

Retail banking has a mass market banking model with a larger customer base, hence the risk is more widespread.

The abolition of entry loads for equity-based schemes has reduced the upfront commission offered by mutual funds to banks, which has resulted in reduced mobilizations and commissions. It has not increased mobilizations or had no impact on mobilizations and commissions, and it has not reduced commissions but increased mobilizations.

Effective regulatory control and regular supervision are essential for banks to deliver their services with profitability and withstand the shocks of the economy. Bank crises lead to a serious breakdown of the economy, as witnessed in the subprime crisis (2007-2008).

Delivery models in banking refer to the various channels through which banking services are provided to customers. 
In foreign and private banks, since there was a mismatch between their retail banking objectives and the human resources available to achieve the objectives, private banks engaged external agencies to carry out marketing and customer acquisitions.

Today's consumers demand financial services to be available and delivered to them seamlessly and ubiquitously through any channel they choose to use.

According to the Boston Consulting Group study, the Horizontally Organized Model is where an individual process platform supports one product only and the sub-data in the model are not shared with other products and product platforms.

The dimension of assurance in service quality refers to the trustworthiness of the service provider.

The existing product and service levels are satisfactory and above industry averages among public sector banks.

The marketing mix in retail banking refers to the different ingredients that make up a good marketing strategy, including product, price, promotion, place, people, process, and physical evidence.

The ultimate objective of marketing initiatives in retail banking is to achieve the business objectives of growth and profit.

Investment management in banking refers to the process of managing the funds of clients by investing them in different financial instruments like stocks, bonds, and other securities. The main objective of investment management is to maximize the returns on investments while minimizing the risks associated with them. Banks offer investment management services to their clients to help them achieve their financial goals by creating a diversified portfolio tailored to their specific needs and risk tolerance. Investment management is a crucial aspect of banking and requires expertise and knowledge in various financial instruments and markets.
Investment banking deals primarily with the creation of capital for other companies, governments, and other entities. Investment banking activities include underwriting new debt and equity securities for all types of corporations.

Investment management in banking refers to the process of managing the funds of clients by investing them in different financial instruments like stocks, bonds, and other securities. The main objective of investment management is to maximize the returns on investments while minimizing the risks associated with them. Banks offer investment management services to their clients to help them achieve their financial goals by creating a diversified portfolio tailored to their specific needs and risk tolerance. Investment management is a crucial aspect of banking and requires expertise and knowledge in various financial instruments and markets.
The main function of the middle office is to ensure that the investment bank doesn't engage in activities that can be detrimental to the bank's health. This includes functions like risk management, financial control, corporate treasury, corporate strategy, and compliance.

Profitability measures how well a company can generate profit from its expenses. It takes into account factors such as revenue, costs, and resources to determine how efficiently a company is operating and whether it is successful or not.