CAIIB 2020 Retail Banking Mock Tests Set 17

Retail Banking Products can be broadly classified into -

Options are :

  • Liability Products.
  • Retail Credit Products.
  • 3rd party products
  • Only A and B.

Answer :Only A and B.

CAIIB 2020 Retail Banking Mock Tests Set 18

A Current Account offering Basic Current Account with Cheque Book is generally referred to as -

Options are :

  • Core Current Accounts.
  • Augmented Current Accounts.
  • Premium Current Accounts.
  • Preferential Current Accounts.

Answer :Core Current Accounts.

With respect to Retail Deposits, BSBDA stands for -

Options are :

  • Beginner Savings Bank Deposit Account
  • Basic Savings Balance Deposit Account
  • Basic Savings Bank Deposit Account
  • Basic Simple Bank Deposit Account

Answer :Basic Savings Bank Deposit Account

With respect to Term Deposits, Deposits for twelve months or more should be termed as-

Options are :

  • Fixed Deposits.
  • Short Deposits
  • Annual Deposits
  • Overdue Deposits

Answer :Fixed Deposits.

CAIIB 2020 Bank Financial Management Mock Tests Set 1

The KYC policy of the banks include following key elements-

I)Customer Acceptance Policy.

II) Risk Management.

III)Customer Identification Procedures (CIP).

IV)Monitoring of Transactions.

Options are :

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

Answer :All of the above

With respect to KYC, Customers are categorized as __________ ,based on the assessment and risk perception of the bank.

Options are :

  • low and high risk category.
  • low, medium and high risk category.
  • low,mid and high risk category.
  • low, medium and maximum risk category.

Answer :low, medium and high risk category.

For KYC, Customers at their option, can submit one of the ______ OVDs for proof of identity and proof of address.

Options are :

  • 3
  • 4
  • 5
  • 6

Answer :6

CAIIB 2020 Bank Financial Management Mock Tests Set 10

If any person who does not have a permanent account number and who enters into any transaction specified in this rule, shall make a declaration in _______ giving therein the particulars of such transaction.

Options are :

  • Form 61
  • Form 60
  • Form 16A
  • Form 16B

Answer :Form 60

With respect to KYC, periodic updation is carried out at least once in every ______ for high risk customers.

Options are :

  • 6 months
  • 1 Year
  • 2 Year
  • 3 Year

Answer :2 Year

________  are cash credit accounts for business people to fix credit limits and allow them to operate freely within the limits subject to certain stipulations.

Options are :

  • Traditional Credit Schemes.
  • Market Oriented New Credit Schemes
  • Overseas Credit Schemes
  • Hybrid Credit Schemes

Answer :Traditional Credit Schemes.

CAIIB 2020 Bank Financial Management Mock Tests Set 11

_______ is an undertaking from the banker to pay the beneficiary the prescribed amount, subject to production of certain documents as required in the contract between the customer and beneficiary specifically those that are listed, if the documents are negotiated as per prescriptions.

Options are :

  • Bank Guarantee
  • Letter of credit
  • Co-acceptance of bills
  • Cash Credit

Answer :Letter of credit

__________  is an emerging business model of the banks to augment fee based income by selling products and services of other service providers/agencies in the financial and investment space like insurance companies, mutual funds, etc.

Options are :

  • Third Party distribution
  • Outsourcing
  • Overseas Client building
  • None of the above.

Answer :Third Party distribution

New product ideas are generated from -

Options are :

  • Market research based on customer expectations from the existing and potential customers
  • In house from the employees of the banks
  • Both A and B.
  • None

Answer :Both A and B.

CAIIB 2020 Bank Financial Management Mock Tests Set 12

Which stage in new product development helps to analyze the expected increase in business, and profits and also the effect on the expansion and retention of customer base. This stage also analyzes the expected effect on the market share and also the expected penetration of markets of the competitors.

Options are :

  • Generating new products ideas.
  • Idea screening.
  • Business analysis and Market analysis.
  • Actual product development, test marketing and commercialization.

Answer :Business analysis and Market analysis.

Which of the following are some of the constraints faced in new product development?

I) Heterogeneity of the customer base in different branches.

II) With the technological revolution, product obsolescence is very fast.

III) Difficulty to convert the idea as a product with business potential.

IV) Resistance from the staff for new product development.

Options are :

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

Answer :All of the above

The _________  product represents the customer's minimal purchase condition and what the customer expects from the product.

Options are :

  • The Generic Product
  • The Expected Product
  • The Augmented Product
  • The Potential Product

Answer :The Expected Product

CAIIB 2020 Bank Financial Management Mock Tests Set 13

Ganganagar Rajasthan Bank as a part of their Savings Bank Account, also offers the facility of collecting the cheques of the customer at their doorsteps and offers free collection of cheques. This type of feature to SB account is a/an ________ feature of the product.

Options are :

  • Generic
  • Expected
  • Augmented
  • Potential

Answer :Augmented

In case of tax savings fixed deposits, USP is -

Options are :

  • ‘cumulative interest on a quarterly compounded basis'.
  • Tax Savings upto ?50,000
  • 5 year lock in.
  • Re-investment of amount again after completion of maturity.

Answer :Tax Savings upto ?50,000

Which one of the following statements is correct in respect of Product Cycle?

I) In the ‘Introduction' stage of a product, the sales volume will be low and revenue from the products will not be sufficient to cover the cost of producing, marketing and servicing it.

II) In the ‘growth' stage, which is the second stage in the product life cycle, the sales volumes remains stagnant.

III) In the ‘maturity' stage, there is more growth and sales volume peaks.

Options are :

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

Answer :Only I,III

CAIIB 2020 Bank Financial Management Mock Tests Set 14

Product architecture components include ________.

I) The Generic Product – the core product.

II) The Expected Product – adding additional features.

III) The Augmented Product – adding value in addition to features.

IV) The potential Product – futuristic features in anticipation.

Options are :

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

Answer :All of the above

In a __________ , a single firm captures/processes all of the transaction data. In this system, owners contract directly with the cardholders and merchants, authorizing and setting all transactions. The system is prevalent in case of Diners club and American Express (later known as Discover) cards.

Options are :

  • closed loop system
  • open loop system
  • Hybrid loop system
  • Multi loop system

Answer :closed loop system

The main role of the sponsors (Visa, Master Card and RuPay) is to facilitate transactions among those-

I) who use their payment cards

II) those who accept the same, and the member financial institutions that manage these relationships.

III) those customers who are interested in availing the benefits of these sponsors. 

Options are :

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

Answer :Only I,II

CAIIB 2020 Bank Financial Management Mock Tests Set 2

NPCI works under the provisions of which of the following act?

Options are :

  • Banking Regulations Act.
  • Negotiable Instruments Act.
  • Payment and Settlement System Act.
  • Digital Payments Act.

Answer :Payment and Settlement System Act.

As per RBI latest statistics which bank has largest number of Credit Cards issued to the customer?

Options are :

  • State bank of India
  • ICICI Bank
  • Axis Bank
  • HDFC Bank

Answer :HDFC Bank

Credit Cards are issued with limits of usage called _______  which fix the upper limit upto which the cards can be used.

Options are :

  • withdrawal limit
  • Expense Limit
  • Card Limit
  • Chip limit

Answer :Card Limit

CAIIB 2020 Bank Financial Management Mock Tests Set 3

To induce usage of cards, _______ are awarded based on the amount and type of usage.

Options are :

  • reward points
  • grace points
  • free credit points
  • free miles.

Answer :reward points

Finance charges are payable at the ___________  on all transactions including unpaid EMI installments from the date of the transaction in the event of the card holder choosing not to pay his balance in full, and on all cash advances taken by the card holder, till they are paid back.

Options are :

  • monthly interest rate.
  • daily interest rate
  • yearly interest rate
  • Quarterly interest rate.

Answer :monthly interest rate.

__________  is calculated by adding New Debits for the month, previously unpaid payments and other charges.

Options are :

  • monthly amount due
  • Minimum Amount Due
  • Maximum amount due
  • Maximum Overdue

Answer :Minimum Amount Due

CAIIB 2020 Bank Financial Management Mock Tests Set 4

Regulatory prescription has made credit card issuers to clearly mention the interest rate on an ___________

Options are :

  • Annualised Percentage Rate (APR).
  • Quarterly Percentage Rate (QPR).
  • Monthly Percentage Rate (MPR).
  • Daily Percentage Rate (DPR).

Answer :Annualised Percentage Rate (APR).

As per new credit card norms of a private sector bank, Cash Transactions will attract an monthly interest rate of 3.49%. Annualised Percentage Rate (APR) for such transactions is -

Options are :

  • 37.20%
  • 41.88%
  • 49.22%
  • 59.78%

Answer :41.88%

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