CAIIB 2020 Retail Banking Mock Tests Set 15

Which of the following are considered warning signs in credit score?

I) Craving for credit.

II) Frequent and unnecessary shopping for credit.

III) Several new accounts or recent requests for loans can be taken as signs of an over-hungry borrower.

IV) The length of credit history is also important. Older accounts are generally better, so you should be judicious about closing old accounts and opening new ones.


Options are :

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

Answer :all of the above

CAIIB 2020 Retail Banking Mock Tests Set 16

With respect to credit scoring, CIC refers to -


Options are :

  • Credit Information Companies
  • CIBIL Information Company
  • Credit Inspection Company
  • CIBIL inspection Company

Answer :Credit Information Companies

In India, how any CICs are currently operating?


Options are :

  • 4
  • 5
  • 6
  • 7

Answer :4

Which of the following are the benefits of using credit information report?

I) It helps in analysing your true financial standing and make plans for future finances.

II) One can be on top of your borrowings and avoid debt traps.

III) With a Credit Information Report in hand, he or she will be in a good position to make decisions regarding availing new forms of credit, while also being able to extract the best possible rates from banks or other lenders.

IV) It helps in cultivating financial discipline.


Options are :

  • Only IV
  • Only II,III
  • Only III,IV
  • all of the above

Answer :all of the above

CAIIB 2020 Bank Financial Management Mock Tests Set 1

Which of the following factors leads to favourable credit score?

I) Paying credit card bills in full rather than paying minimum due amount every time.

II) Avoiding over-leveraging.

III) Maintaining strong financial records.

IV) Proper utilization of approved credit limit.


Options are :

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

Answer :all of the above

Which of the following factors leads to negative credit score?

I) Defaulting on credit card bills/making late payments or consistent part payments.

II) Too much unsecured credit such as multiple personal loans.

III) Multiple applications for unsecured loan getting rejected.

IV) Poor status in locality.



Options are :

  • Only I
  • Only II
  • Only I,II,III
  • all of the above

Answer :Only I,II,III

Which if the following are advantages of maintaining high credit scores?

I) Easy availability of credit such as loans. According to the official CIBIL website, about 90% of loan applicants with CIBIL score greater than 700 are approved for loans.

II) Quick processing of loan and credit card applications.

III) Ability to negotiate interest rates, owing to your strong financial standing.

IV) Though not guaranteed, the possibility of negotiating or waiving processing fees as well as choosing prepayment options.


Options are :

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

Answer :all of the above

CAIIB 2020 Bank Financial Management Mock Tests Set 10

__________  is an enabler for banks to take a call on the risk assessment based on the score and accordingly decide at the price for the risk. It also enables the banks to speed up credit decisions and disbursement based on the score.


Options are :

  • Credit Scoring
  • Risk Scoring
  • Risk Categorization
  • Credit Risk Scoring

Answer :Credit Scoring

Credit Scoring Models are based on the _____________________ of applicants.

I)Defaults on previous credit transactions

II)Payment behavior/Payment history

III)Previous searches/inquiries

IV)Annual income


Options are :

  • Only I
  • Only II
  • Only III
  • all of the above

Answer :all of the above

Which of the following is a valid purpose to avail Home Loan?

I)To purchase/construct house/flat.

II)To renovate/extend/repair existing house/flat.

III)To purchase a plot of land for construction of house.

IV)To acquire household articles along with the house/flat for furnishing the house/flat


Options are :

  • Only I,II
  • Only II,III
  • Only III,IV
  • 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 11

Banks should not include stamp duty, registration and other documentation charges in the cost of the housing property they finance so that the effectiveness of LTV norms is not diluted. However, in cases where the cost of the house/dwelling units does not exceed ________, bank may add stamp duty, registration and other documentation charges to the cost of the house /dwelling unit for the purpose of calculating LTV ratio.


Options are :

  • ?5 Lakh
  • ?10 Lakh
  • ?15 Lakh
  • ?20 Lakh

Answer :?10 Lakh

Which of the following statement is NOT correct w.r.t. Housing Loan?

I)The property should be valued by the RBI approved value. Newspapers and journals have a data bank that carries price data on properties in different areas of most cities.

II)The title of the borrower to the property offered as security should be verified by the bank's lawyer who will go through the chain of title for a stipulated period as per the policies of individual banks.

III)No loan should be given in respect of those properties which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid.

IV) No loan should also be given in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying for loan.


Options are :

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

Answer :Only II,III,IV

Bank finance may be granted to individuals for-

I) Acquisition of land for construction on the plot, with the help of bank or otherwise, within a period as may be laid down by the individual banks.

II) Purchase/construction of dwelling unit per family and for repairs to the damaged dwelling units of families.

III) Buying/constructing a second house in the same or other town/village for the purpose of self-occupation to a person who already owns a house in town/village where he resides.

IV) Purchase of a house to let it out on rental basis on account of his posting outside headquarters or because he has been provided accommodation by his employer.


Options are :

  • Only I,II,IV
  • Only II,III
  • Only II,IV
  • 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 12

Tagline for PMAY(Prime Minister's Awas Yojana) is -


Options are :

  • Housing for All by 2020
  • Housing for All by 2021
  • Housing for All by 2022
  • Housing for All by 2023

Answer :Housing for All by 2022

Under PMAY, Maximum Loan amount eligible for subsidy for EWS(Economically Weaker Section) group is -


Options are :

  • 4 Lakh
  • 6 Lakh
  • 9 Lakh
  • 12 Lakh

Answer :6 Lakh

Which of the following is correct w.r.t security in case of Auto/Vehicle Loans-

I) Hypothecation of vehicle to be purchased out of Bank finance.

II) Charge to be registered with RTO.

III) Third party guarantee required in case of Loans to Senior Citizens

IV) Third party guarantee required in case of Loans to NRIs


Options are :

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

Answer :Only I,II,IV

CAIIB 2020 Bank Financial Management Mock Tests Set 13

what is the moratorium period in case of vehicle/auto loans?


Options are :

  • No moratorium period.
  • 3 months
  • 6 Months
  • 12 Months

Answer :No moratorium period.

Charge created in case of Vehicle /Auto loans is -


Options are :

  • Hypothecation
  • Pledge
  • Mortgage
  • assignment

Answer :Hypothecation

Disbursement in case of Vehicle/Auto loan is -


Options are :

  • Done directly to the Dealer/Suppliers and invoice/receipts to be obtained for record.
  • Done directly to the customer but invoice/receipts to be obtained for record.
  • Both A and B
  • None

Answer :Done directly to the Dealer/Suppliers and invoice/receipts to be obtained for record.

CAIIB 2020 Bank Financial Management Mock Tests Set 14

________  are basically unsecured in nature and are backed by personal guarantees only.


Options are :

  • Vehicle Loans
  • Personal Loans
  • Housing Loans
  • KCCs

Answer :Personal Loans

what is the moratorium period in case of personal loans?


Options are :

  • No moratorium period.
  • 3 months
  • 6 Months
  • 12 Months

Answer :No moratorium period.

In case of educational loans, generally maximum quantum of finance for studies in India is -


Options are :

  • 10 lakh
  • 15 lakh
  • 20 lakh
  • 25 lakh

Answer :10 lakh

CAIIB 2020 Bank Financial Management Mock Tests Set 2

In case of educational loans, loan up to ______  is eligible for the Credit Guarantee coverage.


Options are :

  • ?5 lakh
  • ?7.5 lakh
  • ?10 lakh
  • ?12.5 lakh

Answer :?7.5 lakh

In case of education loans, 3rd party guarantee is waived if the loan is -


Options are :

  • eligible for credit guarantee coverage.
  • less than 5 lakh
  • availed by economically weaker section student.
  • availed by student admitted to IIT.

Answer :eligible for credit guarantee coverage.

Normally, what is the moratorium period in case of education loans?


Options are :

  • No moratorium period.
  • Course Period+3 months
  • Course Period +6 Months
  • Course Period +12 Months

Answer :Course Period +12 Months

CAIIB 2020 Bank Financial Management Mock Tests Set 3

What is the prepayment penalty in case of education loan?


Options are :

  • No prepayment penalty as per RBI
  • 1% of Outstanding
  • 2% of Outstanding
  • 5% of Outstanding

Answer :No prepayment penalty as per RBI

If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of ______.


Options are :

  • 1 year
  • 2 year
  • 3 year
  • 6 months

Answer :2 year

______ interest concession may be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.


Options are :

  • 1%
  • 2%
  • 3%
  • No concession.

Answer :1%

CAIIB 2020 Bank Financial Management Mock Tests Set 4

Which of the following are the main  types of credit card frauds-


Options are :

  • Card-not-present (CNP) fraud
  • Counterfeit and skimming fraud
  • Lost and stolen card fraud
  • all of the above

Answer :all of the above

A _____________ fraud occurs without the use of the physical card, mainly online or over the phone.


Options are :

  • Card-not-present (CNP) fraud
  • Counterfeit and skimming fraud
  • Lost and stolen card fraud
  • False application fraud

Answer :Card-not-present (CNP) fraud

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