CAIIB 2020 Retail Banking Mock Tests Set 19

Which of the following are correct product development Steps?


Options are :

  • Conducting a market survey -> Identifying the needs -> Developing the product -> Pilot testing to a sample universe -> Getting feedback -> Fine tuning the product -> Final roll out
  • Conducting a market survey -> Identifying the needs -> Developing the product -> Pilot testing to a sample universe -> Fine tuning the product -> Getting feedback -> Final roll out
  • Conducting a market survey -> Identifying the needs -> Developing the product -> Getting feedback -> Fine tuning the product -> Pilot testing to a sample universe -> Final roll out
  • Conducting a market survey -> Identifying the needs -> Pilot testing to a sample universe -> Developing the product -> Getting feedback -> Fine tuning the product -> Final roll out.

Answer :Conducting a market survey -> Identifying the needs -> Developing the product -> Pilot testing to a sample universe -> Getting feedback -> Fine tuning the product -> Final roll out

Processing of products and services in retail banking is basically approached from three dimensions. Which of the following are those 3 approaches?

I) The entire processing done through in-house resources

II) Some products processed in house and for some products outsourcing is done for process

III) Outsourcing of entire process subject to prescribing process standards.

IV) Selecting the minimum quote price out of received proposal and then choosing to outsource or built in-house.


Options are :

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

Answer :only I, II,III

CAIIB 2020 Retail Banking Mock Tests Set 2

Which of the following are one of the process models used by banks for retail asset products?

I) Centralized Retail Assets Processing Centres where all the retail loans sourced at the branches and by the marketing team are processed at a single point

II) centralized processing for some asset products (say Housing Loans) and regional processing centres or standalone processing at branches for other products.

III) stand-alone branch level processing and delivery of retail assets without resorting to any centralized model or regional hubs. 

IV) no centralized processing but only regional processing hubs to cater to specific cluster or geography of branches and process one or more types of loans.


Options are :

  • Only I,III
  • 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

In almost all PSBs, __________  is the norm for processing liability products. Opening of accounts, related KYC compliance and issue of cheque books are done at the branch level itself.


Options are :

  • Standalone Processing Model.
  • Centralized Processing Model.
  • Regional Processing Model.
  • Overseas Processing Model.

Answer :Standalone Processing Model.

What are the variables which are factored into the pricing of products and services?

I) Market dynamics                II) risk perception         III) return expectations        IV) resources position.


Options are :

  • Only I
  • Only I,II
  • 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 1

In Public Sector Banks, through pricing is market driven and competitive, in almost all the banks, pricing is mainly driven on the basis of the _____ of the banks.


Options are :

  • Asset Liability Management Practices.
  • Market dynamics
  • resources position
  • customer profile

Answer :Asset Liability Management Practices.

Some Banks pricing structuring also involves price bundling where a holistic pricing is offered across a specific bundle of products and services so that the total price proposition is attractive than the stand alone pricing for the individual products of the bundle. This structuring is done for -


Options are :

  • This is done to stand out from the other retail products offered by other banks
  • This is a cross selling strategy to entice the customer to avail more products so that profitability per customer is enhanced.
  • This is a up-selling strategy to make customers buy other cheaper products.
  • This is multi-selling strategy, so that bank expands customer base and thus increase the net profitability.

Answer :This is a cross selling strategy to entice the customer to avail more products so that profitability per customer is enhanced.

The technology models basically adopted by banks are - 

I) in-house Models        II) Outsourced Models III) Partially in-house        IV) Partially Outsourced Models.


Options are :

  • Only I,IV
  • Only I,II
  • 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 correct distinctions between retail and corporate/wholesale banking?


Options are :

  • Retail Banking targets at the individual segment while corporate banking deals mainly with corporate clients.
  • Retail Banking is a B2C approach (Business to Customer) whereas corporate banking is a B2B approach (Business to Business).
  • The ticket size of loans in retail banking is low whereas ticket size is high in corporate loans.
  • All of the above.

Answer :All of the above.

The implementation models followed by banks for retail banking include I)Horizontally Organised Model II)Vertically Organised Model III)Predominantly Vertically Organised Model IV)Predominantly Horizontally Organised Model


Options are :

  • I & II only
  • II & III only
  • II, III & IV only
  • I, II, III & IV

Answer :I, II, III & IV

Which one of the following ways, the price structuring for products and services is attempted by banks?

I)Standalone pricing for different products and services.

II)Special quotes for high value deposits.

III)Bundled pricing/Holistic pricing based on total relationship.


Options are :

  • I only
  • I & II only
  • II & III only
  • I,II,III

Answer :I,II,III

CAIIB 2020 Bank Financial Management Mock Tests Set 11

Which one of the following is not included under Retail Banking?


Options are :

  • Online Banking
  • Medium Business
  • High Net Worth Individuals
  • Corporate Entities

Answer :Corporate Entities

Which one of the following forms the backbone of retail banking income?


Options are :

  • Liability products
  • Asset products
  • Third party products
  • a and b above

Answer :Asset products

Under which category, the sale of insurance products falls?


Options are :

  • Retail Liability
  • Retail Asset
  • Other Retail Product
  • None of the above.

Answer :Other Retail Product

CAIIB 2020 Bank Financial Management Mock Tests Set 12

__________  refers to provision of banking products and services offered to individual customers, typically for non-entrepreneurial purposes.


Options are :

  • MSME Banking
  • Retail Banking
  • NRI Banking
  • Entrepreneurial Banking

Answer :Retail Banking

Retail Banking involves offering of products on which side of Balance Sheet?


Options are :

  • Asset Side
  • Liability Side
  • Both
  • None

Answer :Both

Which of the following  reasons resulted in big spurt in Retail Banking?

I) Strong economic fundamentals

II) Growing urban population

III) Higher disposable incomes

IV) Emergence of new customer segments and rise in the mass affluent space.


Options are :

  • Only I,II
  • 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 13

During 2015-16 the number of white label ATMs (WLAs), which are owned and operated by non-bank entities, increased significantly to 12,962 from 7,881 during the previous year. This spurt in WLAs was mainly due to -


Options are :

  • Entry of new players in the banking space such as payments banks and Small Finance Banks which were collaborating with WLA operators rather than having their own ATMs to minimize costs.
  • Rapid decrease in operating costs of WLAs by enhancement of technology, thus enabling banks to increase their WLAs network.
  • Both A and B
  • None

Answer :Entry of new players in the banking space such as payments banks and Small Finance Banks which were collaborating with WLA operators rather than having their own ATMs to minimize costs.

During 2014-15, the spurt in debit card growth was attributed to the _______


Options are :

  • PMJDY
  • Demonetization and thus resulting in digital payments which required Debit Cards.
  • Rapid decrease in manufacturing cost of Debit Cards by enhancement of technology, thus enabling banks to distribute Debit cards with every new account opened.
  • Both A and C

Answer :PMJDY

Prerequisite for success of retail banking are - I) Presence of an efficient delivery mechanism II) Product appropriateness III) Scoring models for assessing the credit worthiness IV) Consumer protection environment


Options are :

  • Only I,II,III
  • Only I,II,IV
  • Only I,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 14

How can the bank estimate Product appropriateness?


Options are :

  • By investing heavily into data analytics and assessing what are the appropriate products and services for the specific groups of their customers.
  • By deploying their marketing officers and team in key areas and locations so that they can estimate product appropriateness.
  • By conducting Surveys with customers.
  • all of the above.

Answer :By investing heavily into data analytics and assessing what are the appropriate products and services for the specific groups of their customers.

__________is a statistical technique that combines several financial characteristics to predict the behavior of new applicants based on the performance of existing borrowers.


Options are :

  • VaR
  • Credit Scoring Model
  • Credit Assessment
  • Credit Predicament.

Answer :Credit Scoring Model

What are the different challenges experienced by banks in Retail Banking ?

I) Inadequacy of MIS

II) Managing Risk

III) Effects of disruptive new technologies

IV) Continuing growth


Options are :

  • Only I
  • Only I,III,IV
  • Only 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 2

For the retail banking model to be successful, banks pricing should be


Options are :

  • non-discriminatory
  • risk-based
  • competitive.
  • All of the above

Answer :All of the above

Reasons for the Growth of the Retail Banking Segment


Options are :

  • Rise of the Young Indian Professionals
  • Automation of banking process
  • Increasing purchasing power of middle class people
  • All of the above

Answer :All of the above

The retail banking sector is often described as a typical __________, offering services such as savings and operative accounts and all kinds of personal loans, including auto loans and student loans.


Options are :

  • mass market banking
  • customized banking
  • specialized banking
  • segmental Banking

Answer :mass market banking

CAIIB 2020 Bank Financial Management Mock Tests Set 3

The business models for retail banking show interesting revelations across types of banks. The models adopted by banks very among the public sector, private sector and foreign banks. Which of the following are the main approaches followed?


Options are :

  • Strategic Business Unit (SBU) Approach,
  • Departmental Approach,
  • Integrated Approach (part of the overall business plan).
  • All of the above.

Answer :All of the above.

_______ are autonomous divisions, small enough to be flexible and large enough to exercise control over most of the factors affecting its long-term performance.


Options are :

  • Strategic Business Units
  • Control Units
  • Mastermind Units
  • Business Meetups

Answer :Strategic Business Units

The ____________  is a specialised functional approach within an organisation. This approach segregates the functions of the organisation into departments such as accounting, marketing, finance, planning, etc.


Options are :

  • Strategic Business Unit (SBU) Approach
  • Departmental Approach,
  • Integrated Approach (part of the overall business plan).
  • Specific Module Approach.

Answer :Departmental Approach,

CAIIB 2020 Bank Financial Management Mock Tests Set 4

Public Sector Banks in India generally have adopted the _____________ as their retail banking business model.


Options are :

  • Strategic Business Unit (SBU) Approach
  • Departmental Approach,
  • Integrated Approach (part of the overall business plan).
  • Specific Module Approach.

Answer :Departmental Approach,

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