CAIIB 2020 Retail Banking Mock Tests Set 13

Which of the following types of customers are targeted in Retail Banking?


Options are :

  • Individuals
  • Group of individuals
  • Employed or self-employed having regular income
  • All of the above

Answer :All of the above

CAIIB 2020 Retail Banking Mock Tests Set 14

The first step in the approval process for retail loans is -


Options are :

  • Collection of application and information that is necessary to evaluate the customer.
  • Observing the past financial relationship of the customer with the bank.
  • Checking the CIBIL score.
  • Due Diligence.

Answer :Collection of application and information that is necessary to evaluate the customer.

The Second step in the approval process for retail loans is -


Options are :

  • Collection of application and information that is necessary to evaluate the customer.
  • Observing the past financial relationship of the customer with the bank.
  • Checking the CIBIL score.
  • Due Diligence.

Answer :Due Diligence.

Which of the following are the details that are verified by the banks in due diligence step of retail loan approval process?

I) Verification of KYC with relevant documents

II) Credit Report verification from Credit Information Companies

III) House visit to ensure residential address

IV) Verification and inspection of immovable property offered as security/collateral


Options are :

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

Answer :All of the above.

CAIIB 2020 Bank Financial Management Mock Tests Set 1

Broadly customers are segmented based on their _______  as their need pyramid will vary with the rise in this parameter.


Options are :

  • Geographical locations
  • Income Levels
  • Social Status
  • Caste

Answer :Income Levels

The __________,________ and ________  are the most important segments for banks with regard to their retail banking initiatives. The products and services are structured mostly to meet the requirements of the above segments.


Options are :

  • Mass Market.
  • Mass Affluent.
  • Super Affluent.
  • All of the above.

Answer :All of the above.

The theory will helps banks to structure products to match the different stages of the need pyramid of the customers is -


Options are :

  • Maslow's Theory
  • Herzberg's Theory
  • McClelland's Need Theory
  • Vroom's Expectancy Theory

Answer :Maslow's Theory

CAIIB 2020 Bank Financial Management Mock Tests Set 10

Abraham Maslow's Motivation theory consists of which of the following 5 levels?


Options are :

  • Self-actualization needs, physiological needs, Safety needs, financial needs, Esteem needs
  • physiological needs, Safety needs, Social needs, affection and Self-actualization needs.
  • physiological needs, Safety needs, Social needs, Esteem needs and Self-actualization needs.
  • physiological needs, Safety needs, Social needs, Esteem needs and Self-motivation needs.

Answer :physiological needs, Safety needs, Social needs, Esteem needs and Self-actualization needs.

As per Abraham Maslow's Motivation theory, order of need satisfaction is -


Options are :

  • Lower to higher needs
  • Higher to lower
  • Any specific need can be attended first.
  • None

Answer :Lower to higher needs

The highest level of need as per Abraham Maslow's Motivation theory is -


Options are :

  • Self-actualization needs
  • physiological needs, Safety needs, Social needs, affection and Self-actualization needs.
  • Safety needs
  • financial needs

Answer :Self-actualization needs

CAIIB 2020 Bank Financial Management Mock Tests Set 11

Which of the following Banking, Investment and Insurance Products matches Physiological Needs as per Abraham Maslow's Motivation theory?

I) Core Saving Accounts                II) Personal Accident Cover

III) Housing Loans                        IV) Life Insurance Products


Options are :

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

Answer :Only I,II,III

Which of the following Banking, Investment and Insurance Products Matches Security/Safety needs as per Abraham Maslow's Motivation theory?

I) Fixed Deposit Products                II) Personal Accident Cover

III) Mutual Fund Products.                IV) Life Insurance Products


Options are :

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

Answer :Only I,III,IV

Which of the following Banking, Investment and Insurance Products Matches Social needs as per Abraham Maslow's Motivation theory?

I) Fixed Deposit Products                II) Personal Accident Cover

III) Retail Gold Coins                        IV) Home Loans


Options are :

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

Answer :Only III, IV

CAIIB 2020 Bank Financial Management Mock Tests Set 12

Which of the following Banking, Investment and Insurance Products Matches Esteem needs as per Abraham Maslow's Motivation theory?

I) Second Housing Loans                II) Term Insurance Products III) Retail Gold Coins                        IV) Home Loans


Options are :

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

Answer :Only I,II

Maslow's Motivation theory?

I) Second Housing Loans                II) Senior Citizens Term Deposit Products

III) Pensioners Loans                        IV) Home Loans


Options are :

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

Answer :Only II,III

Which of the following are some of the requirements/expectations of the customers about the service quality of banks-


Options are :

  • Tangibility.
  • Reliability.
  • Responsiveness.
  • All of the above.

Answer :All of the above.

CAIIB 2020 Bank Financial Management Mock Tests Set 13

[Case Study Retail Customer Requirements] Mr.Subhash is a retired army officer having his account at Imphal city national Bank. He is in need of Reverse Mortgage loan. The Branch Manager assured him that all the documents are processed and his loan will be sanctioned within next 2 days. Mr. Subhash waited for 3 days and noticed that the loan has still not been sanctioned not the manager informed any discrepancy either verbally or in written. Which customer requirements/expectations about the service quality of banks did Branch Manager didn't met?


Options are :

  • Reliability.
  • Responsiveness.
  • Credibility.
  • Courtesy.

Answer :Reliability.

[Case Study Retail Customer Requirements] M/S George Varghese Shipping Agency is having a business account with Punjab International Bank, Kochi Branch. They requested a monthly statement from the bank which bank provided instantly. The accountant of the firm noticed some discrepancy in the statement. He observed that cash handling charges has not been deducted as per norms (in fact deducted extra). The firm requested the branch manager to resolve the issue quickly. On checking the statement after 10 days the firm observed that the charges still persist and not correction is made nor any kind of reasoning is provided by the bank. Which customer requirements/expectations about the service quality of banks did Branch Manager didn't met?


Options are :

  • Reliability.
  • Responsiveness.
  • Credibility.
  • Courtesy.

Answer :Responsiveness.

[Case Study Retail Customer Requirements] Ms. Sheena is having a savings account with Trichy International Bank. While going through her passbook she observed that Annual Maintenance charges have been debited twice by the bank. She informed the counter clerk who in turn reversed the charges debited twice after due diligence and approval from the branch manager. Which customer requirements/expectations about the service quality of banks did Branch Clerk met?


Options are :

  • Reliability.
  • Responsiveness.
  • Credibility.
  • Courtesy.

Answer :Responsiveness.

CAIIB 2020 Bank Financial Management Mock Tests Set 14

[Case Study Retail Customer Requirements] Mr. Jagan Reddy is an officer posted at rural branch of Bengal National Bank in West Bengal. His native place is Telangana and thus face difficulty in understanding Bengali. He received a written complaint from local rural farmer regarding noncredit of his interest subsidy. Since the farmer can't understand English he replied to the complaint in Bengali with the help of local staff. Which customer requirements/expectations about the service quality of banks did Branch Officer met?


Options are :

  • Reliability.
  • Responsiveness.
  • Empathy
  • Courtesy.

Answer :Empathy

What information is the bank expected to give to the retail customers when one opens a deposit (savings or current) account?

I) The number of transactions, cash withdrawals etc. that can be done free of charge within a given the period and the charges leviable in case such limits are exceeded.

II)Rate of interest paid on savings deposits and its periodicity

III)Minimum balance to be maintained and charges for non-maintenance thereof.

IV) Eligible loan amount if incase customer also wants to avail one.


Options are :

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

Answer :Only I,II,III

Will an account-holder be subjected to the full KYC procedure while transferring an account form one branch of a bank to another of the same bank?


Options are :

  • Yes, KYC done at the parent branch is valid there only and fresh KYC needs to be done at the new branch.
  • No. KYC done by one branch of a bank is valid for transfer to any branch of the same bank, as long as full KYC was done at the time of opening the first account / account at the first branch.
  • No. KYC done by one branch of a bank is valid for transfer to any branch of the same bank, as long as full KYC was done at the time of opening the first account / account at the first branch.. However, fresh address proof may be required to be submitted to the new branch.
  • Yes, KYC done by one branch of a bank is not valid for transfer to any branch of the same bank, despite the fact that full KYC was done at the time of opening the first account / account at the first branch. Customer has to again fill and resubmit the KYC sheet at new branch.

Answer :No. KYC done by one branch of a bank is valid for transfer to any branch of the same bank, as long as full KYC was done at the time of opening the first account / account at the first branch.. However, fresh address proof may be required to be submitted to the new branch.

CAIIB 2020 Bank Financial Management Mock Tests Set 2

In case an account-holder is not satisfied with the savings / current account opted for, can he switch to another account?


Options are :

  • Yes, but within 14 days of one making the first payment into the account.
  • Yes, but within 14 days of opening the account.
  • Yes, but within 21 days of one making the first payment into the account.
  • Yes, but within 21 days of opening the account.

Answer :Yes, but within 14 days of one making the first payment into the account.

How is the computation of interest on savings bank deposits done by banks?


Options are :

  • With effect from April 1, 2010, banks are required to pay interest on the end-of-day balances for all savings bank deposits accounts.
  • With effect from April 1, 2012, banks are required to pay interest on the minimum monthly balance of savings bank deposit account.
  • With effect from April 1, 2012, banks are required to pay interest on the balance as on 5th day of the month for all savings bank deposit accounts.
  • With effect from April 1, 2014, banks are required to pay interest on the maximum monthly balance of savings bank deposit account.

Answer :With effect from April 1, 2010, banks are required to pay interest on the end-of-day balances for all savings bank deposits accounts.

What is the periodicity with which banks have to pay interest on deposit accounts?


Options are :

  • Banks can pay interest on deposit accounts at half yearly rests.
  • Banks can pay interest on deposit accounts at quarterly or longer rests
  • Banks can pay interest on deposit accounts at quarterly.
  • Banks can pay interest on deposit accounts as per bank's internal norms.

Answer :Banks can pay interest on deposit accounts at quarterly or longer rests

CAIIB 2020 Bank Financial Management Mock Tests Set 3

What is the information a bank is required to give the retail customer at the time of opening a term deposit?

I) Terms and conditions of the term deposit opted for

II) Procedure for withdrawal of term deposits before maturity

III) Interest rates applicable and charges for premature withdrawal

IV) How to save tax ethically from Income Tax Department by submitting form 60/61


Options are :

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

Answer :Only I,II,III

Can banks prematurely repay term deposits on their own?


Options are :

  • Yes, A term deposit is a contract between the bank and the customer for a definite term and as per NI act bank can close the term deposit prematurely.
  • No, A term deposit is a contract between the bank and the customer for a definite term and it cannot be paid prematurely at the bank's option unless requested by customer.
  • Yes, A term deposit is a contract between the bank and the customer for definite term and it can be paid prematurely at the bank's option by giving customer extra rate of interest.
  • No, Bank can only close term deposit prematurely with consent of RBI.

Answer :No, A term deposit is a contract between the bank and the customer for a definite term and it cannot be paid prematurely at the bank's option unless requested by customer.

____________ is required to be submitted at the time of placing a term deposit and thereafter at the beginning of each financial year, if one is not liable to pay tax on the interest income.


Options are :

  • Form 16A / 16B
  • Form 57G / 57H
  • Form 15A / 15B
  • Form 15G / 15H

Answer :Form 15G / 15H

CAIIB 2020 Bank Financial Management Mock Tests Set 4

A savings or a current account is classified as ___________ if there are no transactions in the account for over a period of _____ .


Options are :

  • Dormant,6 Months
  • In-Operative,12 Months
  • In-Operative,6 Months
  • Dormant,24 Months

Answer :Dormant,24 Months

The bank is required to inform the account holders (including joint account-holders) _______ prior to the account being classified as dormant.


Options are :

  • 6 Months
  • 3 Months
  • 1 Month
  • 2 Months

Answer :3 Months

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