CAIIB 2020 Retail Banking Mock Tests Set 1

BBPS stands for -


Options are :

  • Bharat Bill Payment System
  • Bharat Banking Payment System
  • Bharat Basic Payment System
  • Bharat Bill Payment Software

Answer :Bharat Bill Payment System

CAIIB 2020 Retail Banking Mock Tests Set 10

The BBPS consist of two types of entities carrying out distinct functions. Which of the following are those two entities –

I) Bharat Bill Payment Central Unit (BBPCU)

II) Bharat Banking Payment Main Unit (BBPMU)

III) Bharat Bill Payment Operating Units (BBPOUs)

IV) Bharat Banking Payment Operating Units (BBPOUs)


Options are :

  • Only I,II
  • Only I,III
  • Only I,IV
  • Only II,IV

Answer :Only I,III

Which of the following is one of Roles and responsibilities of Bharat Bill Payment Operating Units (BBPOUs)-

I) On-boarding of billers and aggregators as per standards / rules, appointment of agents; carrying out due diligence (as per processes and rules set out for appointment of sub-agents); and ensure confidentiality and privacy standards are in place.

II)Infrastructure development - Application development, including APIs where required, by respective BBPOUs – in adherence to standards set by the BBPCU.

III) Transaction handling - Safety and security of transactions, verification of biller information, adherence to transaction flow standards / rules set by the BBPCU.

IV) BBPOU will have to ensure the setting up of a suitable fraud and risk management framework for the BBPS.


Options are :

  • Only I
  • Only I,II,IV
  • Only I,II,III
  • All of the above viz. I,II,III,IV

Answer :Only I,II,III

A __________  pools money from many investors and invests the money in stocks, bonds, short term money-market instruments, other securities or assets, or some combination of these investments.


Options are :

  • Mutual Fund
  • Term Insurance
  • PMSBY
  • Debt Fund

Answer :Mutual Fund

CAIIB 2020 Bank Financial Management Mock Tests Set 1

Based on maturity date, Mutual funds are classified as -

I) Open-ended Funds        II) Closed-ended Funds         III) Fixed –ended Funds        IV) Hybrid-Funds


Options are :

  • Only I,III,IV
  • Only I,II
  • Only I,II,III
  • All of the above viz I,II,III,IV

Answer :Only I,II

________ funds run for a specific period.


Options are :

  • Open-ended Funds
  • Closed-ended Funds
  • Fixed –ended Funds
  • Hybrid-Funds

Answer :Closed-ended Funds

Open- Ended Mutual Fund Schemes are categorized into which of the following types

I) Equity Schemes        II) Debt Schemes       

III) Hybrid Schemes        IV) Solution Oriented Schemes


Options are :

  • Only I,IV
  • Only I,II,IV
  • Only I,II,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

CAIIB 2020 Bank Financial Management Mock Tests Set 10

Which of the following are features of Equity Schemes -


Options are :

  • Represent the largest category of mutual funds.
  • Investment objective is long-term capital growth with some income.
  • There are many different types of equity funds because of the different types of investment objective.
  • All of the above

Answer :All of the above

_________ schemes invest in debt instruments of different maturities. This ensures regular income.


Options are :

  • Equity Schemes
  • Debt Schemes
  • Hybrid Schemes
  • Solution Oriented Schemes.

Answer :Debt Schemes

________ is a financial risk management tool in which the insured transfers a risk of potential financial loss to the insurance company that mitigates it in exchange for monetary compensation known as the premium.


Options are :

  • Mutual Fund
  • Insurance
  • Gold Coins
  • Forex

Answer :Insurance

CAIIB 2020 Bank Financial Management Mock Tests Set 11

A________  is a life insurance contract designed to pay a lump sum after a specific term (on its ‘maturity’) or on death.


Options are :

  • Endowment policies
  • Term Insurance Policies
  • Money back policies
  • Pension Plans

Answer :Endowment policies

How much monetary benefit does the insurer get in Term Insurance Policies at the end of policy term?


Options are :

  • NIL
  • Premium + 10% interest
  • Premium + 20% interest
  • Premium Only

Answer :NIL

The concept of distribution of insurance policies through the branches of banks is termed as ______ in global parlance.


Options are :

  • Bankassurance
  • Bancassurance
  • Bancinssurance
  • Bankinssurance

Answer :Bancassurance

CAIIB 2020 Bank Financial Management Mock Tests Set 12

With respect to GIP, the ________ is a cover on the happening of natural death or accidental death and the amount of cover is fixed. (say for example Rs. 1 lakh for natural death and Rs. 2 lakh for accidental death). In these types of covers, the premium will be charged on an annual basis.


Options are :

  • simple fixed cover
  • dynamic cover
  • Hybrid Cover
  • floating Cover

Answer :simple fixed cover

which of the following are correct reasons for banks indulging in cross selling?

I) The prime point for cross selling is the cost factor. It zeroes in on the cost of new customer acquisition for asset expansion and the cost of cross selling to an existing customer.

II) The second important reason is the profit.

III) Cross selling fosters brand loyalty.

IV) Cross selling helps banks to plan, implement and maintain better customer relationship management programmes (CRM) as it gives clarity to developing plans based on the customers’ relationship profile.


Options are :

  • Only II,III,IV
  • Only II,IV
  • Only I,II,III
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

__________ is a process by which physical certificates are converted into electronic form.


Options are :

  • Dematerialization
  • Rematerialization
  • Decaterization
  • Recaterization

Answer :Dematerialization

CAIIB 2020 Bank Financial Management Mock Tests Set 13

________is an agent of the depository who is authorized to offer depository services to investors and is registered with SEBI.


Options are :

  • Depository Participant
  • AMC
  • Depo Participant
  • Mutual Funds

Answer :Depository Participant

International Securities Identification Number (ISIN) is a unique _____digit alphanumeric code given to a security, shares, Debentures, Bonds, etc., when the security is admitted in the depository system.


Options are :

  • 10
  • 11
  • 12
  • 13

Answer :12

Which of the following statements is correct w.r.t. operation of Demat Accounts


Options are :

  • A Demat account can be opened in the name of a minor.
  • The Demat account is operated by a guardian till the minor becomes major.
  • Minor cannot be a joint holder in a demat account.
  • all of the above

Answer :all of the above

CAIIB 2020 Bank Financial Management Mock Tests Set 14

________  means the total holdings of securities belonging to any person.


Options are :

  • Demat
  • Mutual Fund
  • Portfolio
  • None of the above

Answer :Portfolio

A bank undertaking portfolio management service (PMS) departmentally ensures compliance of which of the following conditions-

I) PMS shall be in the nature of investment consultancy/management, for a fee, entirely at the customer’s risk without guaranteeing, either directly or indirectly, a pre-determined return.

II) The fee charged shall be independent of the return to the client.

III) The funds shall not be accepted for portfolio management for a period less than one year.

IV) Funds accepted for portfolio management from the clients, shall not be entrusted to another bank for management.


Options are :

  • Only II,III,IV
  • Only I,II,III
  • Only III,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

For factoring business through a subsidiary, the aggregate of equity investment in factoring subsidiaries and factoring companies must not exceed ____of the bank’s paid up capital and reserves.


Options are :

  • 5%
  • 10%
  • 15%
  • 20%

Answer :10%

CAIIB 2020 Bank Financial Management Mock Tests Set 2

Which of the following statements is/are true w.r.t. the exposure for facilities extended by way of factoring services -


Options are :

  • The exposure shall be reckoned on the assignor for factoring on with-recourse basis.
  • The exposure shall be reckoned on the debtor for factoring on without-recourse basis. Provided that exposure shall be on the import factor in cases of international factoring.
  • The exposure shall be reckoned on the ‘assignor’ or the ‘debtor’ or the ‘import factor’, for factoring on limited recourse basis, depending on the terms of agreement.
  • all of the above.

Answer :all of the above.

_______ are payment instruments that facilitate purchase of goods and services, including financial services, remittance facilities, etc.,against the value stored on such instruments.


Options are :

  • Credit Cards
  • Debit Cards
  • Prepaid Payment Instruments (PPIs)
  • Smart Cards

Answer :Prepaid Payment Instruments (PPIs)

________ are used for purchase of goods and services, including financial services, remittance facilities, etc., at a group of clearly identified merchant locations / establishments which have a specific contract with the issuer (or contract through a payment aggregator / payment gateway) to accept the PPIs as payment instruments.


Options are :

  • Closed System PPIs
  • Semi-closed System PPIs
  • Open System PPIs.
  • Private System PPIs

Answer :Semi-closed System PPIs

CAIIB 2020 Bank Financial Management Mock Tests Set 3

Which of the following instruments of payments are there under Systemically Important Financial Market Infrastructure (SI-FMI) -

I) RTGS        II) CBLO        III) Govt. Securities        IV) Forex Clearing


Options are :

  • Only I,IV
  • Only I,II
  • Only I,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

State bank buddy, ICICI Pockets, Freecharge, Paytm, Amazon Pay  etc. are examples of -


Options are :

  • E – wallets
  • Online Accounts
  • discount Apps
  • None of the above

Answer :E – wallets

_________ is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad.


Options are :

  • Internet Banking
  • Mobile Banking
  • BHIM
  • AEPS

Answer :Mobile Banking

CAIIB 2020 Bank Financial Management Mock Tests Set 4

_________ functions as the authorised Bharat Bill Payment Central Unit (BBPCU), which is responsible for setting business standards, rules and procedures for technical and business requirements for all the participants. It also undertakes clearing and settlement activities related to transactions routed through BBPS.


Options are :

  • NPCI
  • RBI
  • SEBI
  • CRISIL

Answer :NPCI

Bharat QR stands for -


Options are :

  • Bharat Quick Response Code Solution
  • Bharat Quality Response Code Solution
  • Bharat Quick Return Code Solution
  • Bharat Quick Rate Code Solution

Answer :Bharat Quick Response Code Solution

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