CAIIB 2020 Retail Banking Mock Tests Set 10

Which of the following are the main functions of CRM?

I) CRM software consolidates customer information and documents into a single CRM database so that business users can more easily access and manage it.

II) recording various customer interactions (over email, phone calls, social media or other channels, depending on system capabilities)

III) automating various workflow processes such as tasks, calendars and alerts

IV) giving managers the ability to track performance and productivity based on information logged within the system.


Options are :

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

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

CAIIB 2020 Retail Banking Mock Tests Set 11

_________ is designed to reduce tedious aspects of a contact center agent’s job, contact center automation might include pre-recorded audio that assists in customer problem-solving and information dissemination.


Options are :

  • Marketing automation
  • Sales force automation
  • Contact center automation
  • Technological Automation

Answer :Contact center automation

Which of the following are correct implementation stages of CRM -

I) Identification of Customers

II) Classification of Customers

III) Interaction with the most Valued Customers

IV) Customisation of Bank’s Products and Services for Different Customer Segments


Options are :

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

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

Why is classification of customer done in 2nd stage of CRM?


Options are :

  • This helps the banks to develop different kinds of strategies to target the segments
  • This helps the banks to design effective campaigns for generating higher returns from existing customers.
  • Both A and B
  • Neither A nor B

Answer :Both A and B

CAIIB 2020 Bank Financial Management Mock Tests Set 1

Why CRM?


Options are :

  • Need to increase operational efficiencies and to derive more value from employees.
  • The increasing Competition in retail banking.
  • The increasing Importance of Fee Based Income.
  • Delivery Channel Efficacy and application of technology.
  • All the above.

Answer :All the above.

What does Customer Relationship Management (CRM) deal with in retail banking?


Options are :

  • Storing client data and understanding the client’s requirements.
  • Establishing close personal relationship with customers.
  • Keeping in touch with customers to ensure that their needs are understood.
  • Friendly behaviour with clients.
  • All the above.

Answer :All the above.

Customer relationship management is a term that refers to ______  that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth.

I) practices                II) strategies                III) technologies                IV) Discounts


Options are :

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

Answer :Only I,II,III

CAIIB 2020 Bank Financial Management Mock Tests Set 10

Customer optimisation is the essence of CRM and can be addressed through which of the following dimensions


Options are :

  • Acquisition of New Customers who are immediately profitable to the bank.
  • Retention of Existing Customers who are most profitable and valuable to the Bank for the longest duration.
  • Expansion of the customer relationship with the bank encouraging more purchases and shifting the less profitable customers to lower – cost delivery channels.
  • All of the above.

Answer :All of the above.

_________ are important tools which are critical for any meaningful CRM.

I) BlockChain        II) Data Warehouse        III) Data Mining        IV) Cloud Computing


Options are :

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

Answer :Only II,III

Geolocation technology can also be used as a ________  in order to find sales prospects based on location.


Options are :

  • Networking tool.
  • Contact management tool
  • Both A and B.
  • Neither A nor B

Answer :Both A and B.

CAIIB 2020 Bank Financial Management Mock Tests Set 11

Which of the following are some of the important benefits of CRM-

I) Improves the customer satisfaction and cross selling potential for the banks.

II) Helps the banks to derive increased share of wallet from the customer.

III) Enhances the operational efficiencies of the banks.

IV) Helps to take on competition as CRM results in more customer focus and retention.


Options are :

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

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

Research studies have pointed out that, with all the remote channels available to enhance the customer experience of retail banking services, the preference for the brick and mortar format has reigned supreme among customers. The main reasons for the same are:

I) Branch tangibilises the intangible nature of banking services.

II) Personnel at the branch relate with the customer for their transactions.

III) Communication happens directly with the bank staff and customer and better understanding of the service expectations are achieved from both the customer and the bank end.

IV) Physically seeing the bank staff and effecting the transactions brings in a sense of bonding with the bank staff and which in turn enhances the loyalty factor.


Options are :

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

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

Accounts in the names of_____  are NOT eligible for Internet Banking facility.

I) Minors        II) jointly operated Accounts                III) Trusts                IV) HUF


Options are :

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

Answer :Only I,II

CAIIB 2020 Bank Financial Management Mock Tests Set 12

A customer’s entitlement to zero liability shall arise where the unauthorised transaction occurs in which of the following events:

I) Contributory fraud/negligence/deficiency on the part of the bank (irrespective of whether or not the transaction is reported by the customer).

II) Third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, and the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorised transaction.

III) In cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials.

IV) In cases where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the customer, but lies elsewhere in the system and when there is a delay (of four to seven working days after receiving the communication from the bank) on the part of the customer in notifying the bank of such a transaction.


Options are :

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

Answer :Only I,II

Maximum per transaction liability of the customer in case of Credit cards with limit above ? 5 lakh, where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the customer, but lies elsewhere in the system and when there is a delay (of four to seven working days after receiving the communication from the bank) on the part of the customer in notifying the bank of such a transaction is -


Options are :

  • ?5000
  • ?10,000
  • ?25,000
  • ?50,000

Answer :?25,000

A good branch layout and ambience results in which of the following advantages for the bank-

I)Promotes efficiency as it will ensure smooth flow of services which results in time benefits.

II)Because of the proper placing of various service facilities, internal communication effectiveness increases thereby facilitating better coordination among the staff resulting in better customer service.

III)Provides a confortable and congenial work environment to the staff which results in high employee motivation and acts as a morale booster.

IV) Serves as an image building tool for the bank because the layout creates as good impression and generates goodwill in the minds of the customer.


Options are :

  • Only I,II,IV
  • Only III
  • 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 13

The main objectives of banks to set up ATMs are-


Options are :

  • To offer convenience to customers an additional choice to withdraw money during any time of the day according to their will and pleasure.
  • To move the customers away from the counters as service cost is comparatively less through ATMs than across the counter at the branch.
  • Both A and B
  • A or B

Answer :Both A and B

For customers on using ATMs above their free transaction limits, a ceiling/cap on customer charges of _______  (plus service tax, if any) is applicable.


Options are :

  • ?20 per month
  • ?20 per transaction
  • ?10 per month
  • ?10 per transaction

Answer :?20 per transaction

If the for complaint is not lodged within _______  of transaction, the customer is not entitled for any compensation for delay in resolving his/her complaint.


Options are :

  • 7 days
  • 14 days
  • 21 days
  • 30 days

Answer :30 days

CAIIB 2020 Bank Financial Management Mock Tests Set 14

Which of the following are the benefits and uses of Mobile Banking for customers?

I) Facility for using banking facility from anywhere.

II) Easy operations – instructions carried out by self.

III) Option to pay utility bills.

IV) Transfer of funds between accounts – same bank and other banks.


Options are :

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

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

Which of the following are the important human interventions in physical channels -


Options are :

  • Internal Customer – Staff of the Branch.
  • Specialised Marketing Personnel.
  • Direct Selling Associates (DSAs).
  • All of the above

Answer :All of the above

_________ means putting yourself in the shoes of the customer and looking the service level from customer’s perspective.


Options are :

  • Customer Empathy.
  • Customer Retention.
  • Customer Sharing
  • Cross Selling

Answer :Customer Empathy.

CAIIB 2020 Bank Financial Management Mock Tests Set 2

__________ are agencies appointed by banks to source business for them on a fee basis.


Options are :

  • Customer Care agents
  • Direct Selling Agents
  • Door to Door sales agents
  • Affiliate Agents

Answer :Direct Selling Agents

What type of tie-ups normally PSBs enter into ?

I)Tie-up with Builders as a preferred financier for extending Home Loans to prospective buyers.

II)Tie-ups with auto dealers is another method adopted by banks for expanding retail credit.

III)Sanctioning of Personal Loans under tie-up with different institutions is another model adopted by banks to expand retail loans.

IV) Banks set up special counters during the admission season in reputed educational institutions and offer education loans based on merit.


Options are :

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

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

The requirements for delivering effective service to the customers are _________.


Options are :

  • Understanding the customer, his income level, his financial profile, his needs, his requirements of financial products and his life stage.
  • Selling and Cross selling the right products to match their requirements.
  • Post sales service follow up for customer satisfaction.
  • Customer Empathy
  • All the above.

Answer :All the above.

CAIIB 2020 Bank Financial Management Mock Tests Set 3

What is the risk associated with the DSA Marketing Model?


Options are :

  • Market Risk
  • Control Risk
  • Operational Risk
  • Reputation Risk

Answer :Reputation Risk

Which of the following statements are correct w.r.t DSAs(Direct Selling Agents)-


Options are :

  • Banks which do not have a branch penetration and geography, to service a large section of customers, they seek the help of DSAs for sourcing business on behalf of the bank and also complete the preliminary formalities for acquiring customers.
  • DSAs positioned across geographies will make the takes easier for the banks.
  • DSAs are primarily engaged in sourcing Credit Cards and Retail Loans.
  • All of the above

Answer :All of the above

Human interventions in the delivery of services are ____________.


Options are :

  • Internal Customer – Staff of the Branch
  • Specialised Marketing Personnel
  • Direct Selling Associates (DSAs)
  • All the above.

Answer :All the above.

CAIIB 2020 Bank Financial Management Mock Tests Set 4

Tie-ups are entered into by banks for bulk sale of the following assets ______.


Options are :

  • Home Loans
  • Auto Loans
  • Personal Loans
  • Education Loans
  • All the above.

Answer :All the above.

Which of the following statements are correct w.r.t. Marketing in Retail Banking?

I)Identifying the most profitable markets now and in the future.

II)Assessing the present and future needs of customers.

III)Setting business development goals and market plans to meet them.

IV)Adapting to a changing environment in the market place.


Options are :

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

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

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