Test: Retail Banking & Wealth Management - 3 - Bank Exams MCQ

What was the impact of the IT revolution on retail banking in India?

Which among the following describes the correct difference between Portfolio management services and Mutual funds?

Which of the following bonds is tax exempted from the interest rate earned?

What does "Transfer of Accounts" signify in banking?

What is the risk associated with the DSA model?

What is the purpose of the Minimum Retention Requirement (MRR)?

Which of the following is true about Horizontally organized business process models?

Which of the following approach of business models aims at dividing the business units into autonomous divisions independent enough to take their own decisions?

What is the starting point for the implementation of CRM in banks?

What is the purpose of decision models in marketing management?

The customers of any organization drive its revenues, therefore, it is important to build up a large and targeted customer base depending on the products and/or services the organization offers. To make the customers aware of an organization's (here, banks) business and its products and services (here banking products and services), marketing is required which helps the customer in making correct buying decisions. In the context of Retail banking, marketing means- Identifying the most profitable markets now and in the future. It involves assessing the customer's present and future needs which are continuously evolving and dynamic in nature. In marketing, the banks set business development goals and make plans to meet them by going through the four stages of the Marketing process. The elements of the marketing mix for retail banking are- Product, Price, Place, Promotion, Process, People, and Physical evidence.

Q. Which of the following statements best describes a bank product?

The customers of any organization drive its revenues, therefore, it is important to build up a large and targeted customer base depending on the products and/or services the organization offers. To make the customers aware of an organization's (here, banks) business and its products and services (here banking products and services), marketing is required which helps the customer in making correct buying decisions. In the context of Retail banking, marketing means- Identifying the most profitable markets now and in the future. It involves assessing the customer's present and future needs which are continuously evolving and dynamic in nature. In marketing, the banks set business development goals and make plans to meet them by going through the four stages of the Marketing process. The elements of the marketing mix for retail banking are- Product, Price, Place, Promotion, Process, People, and Physical evidence.

Q. What is the key to augmented marketing of retail products?

The banks, in addition to the core banking products like Current Accounts, Savings Deposits, etc. offer certain para-banking activities either departmentally or by setting up subsidiaries. Some such activities are insurance, Mutual funds, credit/debit cards, social security schemes, etc. But such services cannot be offered from the bank's products due to certain restrictions, rather they offer them through the relevant service providers by acting as their corporate agents. These services increase the reach and customer base of banks as it makes the banks a one-stop financial hub for all the financial demands of different customers. Also, it improves the fee-based income of the banks. For example - To avail mutual funds products through banks, the concept of Mutual banking has emerged.
Read the following statements about the Para banking activities of banks-
I. Solution-oriented funds are a type of mutual fund that has a pre-specified lock-in period. An example of such a type of fund is the Index Fund scheme
II. Pradhan Mantri Jeevan Bima Yojana (PMJJBY) is a life insurance cover for the death of the holder due to any reason and it is administered through the Life Insurance Companies. An individual is eligible to join the scheme through one bank account only in the case of multiple banks.

The banks, in addition to the core banking products like Current Accounts, Savings Deposits, etc. offer certain para-banking activities either departmentally or by setting up subsidiaries. Some such activities are insurance, Mutual funds, credit/debit cards, social security schemes, etc. But such services cannot be offered from the bank's products due to certain restrictions, rather they offer them through the relevant service providers by acting as their corporate agents. These services increase the reach and customer base of banks as it makes the banks a one-stop financial hub for all the financial demands of different customers. Also, it improves the fee-based income of the banks. For example - To avail mutual funds products through banks, the concept of Mutual banking has emerged.

Q. Which among the following securities can be dematerialized with the depository?

The banks, in addition to the core banking products like Current Accounts, Savings Deposits, etc. offer certain para-banking activities either departmentally or by setting up subsidiaries. Some such activities are insurance, Mutual funds, credit/debit cards, social security schemes, etc. But such services cannot be offered from the bank's products due to certain restrictions, rather they offer them through the relevant service providers by acting as their corporate agents. These services increase the reach and customer base of banks as it makes the banks a one-stop financial hub for all the financial demands of different customers. Also, it improves the fee-based income of the banks. For example - To avail mutual funds products through banks, the concept of Mutual banking has emerged.

Q. Which of these is an eligibility criterion for banks to undertake insurance business with risk participation through a subsidiary/joint venture?

Although every organization, including banks, must be vigilant in spending money. But today certain circumstances like changes in customer preferences, technological innovations, etc. are putting pressure on banks to improve their operating efficiency. The banks can achieve efficiency in their operations by limiting their expenditure in some areas and making necessary investments in technology, marketing, automation, etc., and also optimizing their legacy investments in branches and traditional systems. The opportunity for improving the operating efficiency varies across different banks and even different branches of the same bank. According to a survey, two out of three bankers acknowledged that they just rely on retaining the current customers for business development. However, the banks need to implement a proactive approach.

Q. Which of the following is the best strategy to increase a bank branch's profitability?

Although every organization, including banks, must be vigilant in spending money. But today certain circumstances like changes in customer preferences, technological innovations, etc. are putting pressure on banks to improve their operating efficiency. The banks can achieve efficiency in their operations by limiting their expenditure in some areas and making necessary investments in technology, marketing, automation, etc., and also optimizing their legacy investments in branches and traditional systems. The opportunity for improving the operating efficiency varies across different banks and even different branches of the same bank. According to a survey, two out of three bankers acknowledged that they just rely on retaining the current customers for business development. However, the banks need to implement a proactive approach.

Q. What is the formula for the long-term success of banks?

Although every organization, including banks, must be vigilant in spending money. But today certain circumstances like changes in customer preferences, technological innovations, etc. are putting pressure on banks to improve their operating efficiency. The banks can achieve efficiency in their operations by limiting their expenditure in some areas and making necessary investments in technology, marketing, automation, etc., and also optimizing their legacy investments in branches and traditional systems. The opportunity for improving the operating efficiency varies across different banks and even different branches of the same bank. According to a survey, two out of three bankers acknowledged that they just rely on retaining the current customers for business development. However, the banks need to implement a proactive approach.

Q. Why is efficiency important for banks?

Which among the following code(s) would not apply to the member banks of BCSBI following the Bank's Commitment Codes?

What is the difference between Closed System PPIs and Semiclosed System PPIs?

What financial product witnessed the first notable technology development in the financial industry and who introduced it?

Why is the evaluation of current business processes essential for CRM implementation in banks?

Why did businesses begin to establish MKIS's?

Which of the following best describes Private Banking?

Which of the following is not an advantage of Portfolio management services (PMS)?

Which section of the Income Tax Act, of 1961 gives the inclusive definition of "Person" for the assessment of tax liability?

What is/are true regarding the Savings Bank Account of a minor?
I. The minors are permitted to open a Savings Bank Account in their sole name only after attaining 14 years of age
II. No Overdraft facility is available on a minor's Savings Bank Account held either singly or jointly with guardians
III. Cheque book facility cannot be provided on the Savings account of a minor under any circumstances