CAIIB 2020 Retail Banking Mock Tests Set 2

__________  offers an instant, 24X7, interbank electronic fund transfer service through mobile phones.It transfers money instantly within banks across India through mobile, internet and ATMs. This facility is provided by NPCI through its existing NFS switch.


Options are :

  • Immediate Payment Service(IMPS)
  • Intermobile Payment Service(IMPS)
  • Bharat Interface for Money(BHIM)
  • NACH

Answer :Immediate Payment Service(IMPS)

CAIIB 2020 Retail Banking Mock Tests Set 3

_________  is the process that obviates the need to move the physical instruments across bank branches. This reduces the time required for their collection and brings elegance to the entire activity of cheque processing


Options are :

  • Rapid Cheque Collection
  • Cheque Truncation System
  • Cheque Transition System
  • Bharat QR

Answer :Cheque Truncation System

_________________ is a system that, through a universal application for transaction, connects multiple bank accounts into a single mobile application (of any participating bank) for immediate money transfer through mobile device round the clock 24x7 and 365 days. It uses a single mobile application for accessing different bank accounts


Options are :

  • Bharat Bill Payment System(BBPS)
  • Aadhaar Enabled Payment Systems(AEPS)
  • Unified Payments Interface(UPI)
  • National Automated Clearing House(NACH)

Answer :Unified Payments Interface(UPI)

Which of the following statements are correct with respect to RTGS - 

I) Real Time Gross Settlement which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting)

II) 'Real Time' means the processing of instructions at the time they are received rather than at some later time.

III) 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).

IV) The RTGS payments are final and irrevocable.


Options are :

  • Only I,II,IV
  • Only I,II,III
  • Only I,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 1

______________  an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.


Options are :

  • National Automated Clearing House(NACH)
  • National Payments Corporation of India (NPCI)
  • Bharat Bill Payment System(BBPS)
  • SEBI

Answer :National Payments Corporation of India (NPCI)

The suitability of a business model or approach of a bank depends upon _______.


Options are :

  • Corporate strategy only.
  • Business objectives only.
  • Business mix only.
  • All of the above.

Answer :All of the above.

Business models of retail banking are being drawn based on various aspects. In this context which one of the following aspects is incorrect?


Options are :

  • Product
  • Capacity
  • Delivery channels
  • Technology

Answer :Capacity

CAIIB 2020 Bank Financial Management Mock Tests Set 10

The _________ is the stage in which the bank provides standardized banking products and services to its customers. In this phase, the banks attempt to build a sufficiently broad customer base which can serve as a stable source of funding.


Options are :

  • mass retail banking
  • class retail banking
  • Both
  • None

Answer :mass retail banking

The_____ is the stage in which the bank offers customized products and services targeted at a niche customer segment, the high net worth individuals.


Options are :

  • mass retail banking
  • class retail banking
  • Both
  • None

Answer :class retail banking

Unlike wholesale banking, retail banking focuses strictly on _____________.


Options are :

  • Consumer Markets
  • NRI Markets
  • Stock Markets
  • Investment Markets

Answer :Consumer Markets

CAIIB 2020 Bank Financial Management Mock Tests Set 11

Which of the following is correct w.r.t Retail Banking?

I) Retail Banking facilities are targeted at individual customers.

II) Retail Banking is focused towards mass market segment covering a large population of individuals.

III) Retail Banking offer different liability, asset and a plethora of service products to the individual customers.

IV) Retail Banking Extended to small-and medium-size businesses.


Options are :

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

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

Retail Banking facilities are targeted at ________


Options are :

  • Individual Customers
  • Only SMEs
  • Only NRIs
  • Only high net worth Individuals

Answer :Individual Customers

The delivery model of retail banking is ___________ i.e. services are extended through branches and also through technology driven electronic off-site delivery channels like ATMs, Internet Banking and Mobile Banking.


Options are :

  • Physical
  • Virtual
  • Both A and B
  • None

Answer :Both A and B

CAIIB 2020 Bank Financial Management Mock Tests Set 12

Which of the following are the advantages of Retail Banking?

I) Client base is large and therefore risk is spread across the customer base.

II) Customer loyalty is strong and customers tend not to change from one bank to another very often.

III) There is less volatility in demand and credit cycle than from large corporate.

IV) Large numbers of clients can facilitate marketing, mass selling and the ability to categorize/select clients using scoring systems/ data mining.


Options are :

  • Only I,II
  • Only I,II,IV
  • Only II,III
  • 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 constraints faced in Retail Banking? I) Problems in managing large numbers of clients, especially of the available IT systems are not sufficiently robust. II) Rapid evolution of products can lead to IT complications. III) Higher delinquencies especially in unsecured retail loans and credit card receivables. IV) High cases of online frauds and other retail banking frauds


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

Any loss in faith in a particular bank can lead to sudden outflow of retail deposits resulting in collapse of the bank. This is called _______


Options are :

  • Bankruptcy
  • Bank Run
  • Bank Liquidation
  • None of the above.

Answer :Bank Run

CAIIB 2020 Bank Financial Management Mock Tests Set 13

Banks are encouraging clients to use cheaper distribution channels, such as ATMs, the mobile or the internet banking because -


Options are :

  • The costs of maintaining branch networks is relatively high.
  • The cost of handling large numbers of low-value transactions is relatively high.
  • None
  • Both A and B

Answer :Both A and B

How Many Bank Accounts Can be linked On BHIM?


Options are :

  • 2
  • 3
  • 4
  • 5

Answer :5

Customer can send money to a limit of _______ per transaction and _________ per day on BHIM


Options are :

  • ?40,000 , ?40,000
  • ?49,000 , ?49,000
  • ?49,000 , ?1,00,000
  • ?1,00,000 , ?1,00,000

Answer :?40,000 , ?40,000

CAIIB 2020 Bank Financial Management Mock Tests Set 14

A user on BHIM can complete only 10 financial transactions in a day for a value not beyond ?40,000. Beyond this limit on frequency or value of transactions, you will be shown an error -


Options are :

  • Risk threshold exceeded.
  • Threshold Limit Exceeded
  • Limit Over Flow
  • None of the above

Answer :Risk threshold exceeded.

What Can a customer do with BHIM?

I) Customer can send & collect money to any person on UPI

II) Customer can pay bills on merchant website by UPI

III) Customer can book flight tickets or recharge your mobile

IV) Customer can scan a QR to make quick payments


Options are :

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

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

In How Many Languages Is BHIM Available?


Options are :

  • 12
  • 14
  • 16
  • 18

Answer :16

CAIIB 2020 Bank Financial Management Mock Tests Set 2

A customer needs to dial ____  to avail features of BHIM without internet on any mobile phone.


Options are :

  • *90#
  • *99#
  • *95#
  • *91#

Answer :*99#

BHIM users can send money by using which one of the following details of the beneficiary-

I)VPA ( Registered on UPI)

II)Mobile No. ( Registered on UPI)

III)Account Number and IFS code

IV) Secret OTP


Options are :

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

Answer :Only I,II,III

_________ feature allows you divide a bill between yourself and other users (BHIM and UPI)


Options are :

  • Split Bill
  • Halved Bill
  • Shared Bill
  • Mutual Bill

Answer :Split Bill

CAIIB 2020 Bank Financial Management Mock Tests Set 3

Which of the following are the benefits of IMPS?

I) Instant

II) Available 24 x7 (excluding public holidays)

III) Safe and secure, easily accessible and cost effective

IV) Channel Independent can be initiated from Mobile/ Internet / ATM channels


Options are :

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

Answer :Only I,III,IV

which of the following channels may be used to initiate IMPS transactions-


Options are :

  • Basic phone-SMS/USSD (NUUP)
  • Internet- Bank’s Internet banking facility
  • ATM-By Using ATM Card at Banks ATM
  • All of the above.

Answer :All of the above.

Mobile Money Identifier is a ___ digit number, issued by banks.


Options are :

  • 5
  • 6
  • 7
  • 8

Answer :7

CAIIB 2020 Bank Financial Management Mock Tests Set 4

In Nepal, the Indo-Nepal Remittance Facility Scheme is handled by -


Options are :

  • Nepal SBI Ltd.
  • Nepal PNB Ltd.
  • Royal Bank of Nepal
  • Reserve Bank of India

Answer :Nepal SBI Ltd.

UPI is providing additional benefits to IMPS in which of  the following ways:

I) Provides for a P2P Pull functionality

II) Simplifies Merchant Payments

III) Single APP for money transfer

IV) Single click two factor authentication


Options are :

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

Answer :All of the above viz. I to IV

PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) Scheme promises to pay all poor farmers (small and marginal farmers having lands up to 2 hectares) ___________ each every year in ______ installments through Direct Bank Transfer.


Options are :

  • ?6000,2
  • ?3000,4
  • ?6000,3
  • ?3000,3

Answer :?6000,3

CAIIB 2020 Bank Financial Management Mock Tests Set 5

The amount required to buy 100 units of a scheme having an entry load of 1.5% and NAV of ?.20 is :


Options are :

  • ?.2000
  • ?.2015
  • ?.1985
  • ?.2030

Answer :?.2030

Which of the following is untrue of an automatic reinvestment plan?


Options are :

  • The plan allows for automatic reinvestment of all income and capital gains
  • Automatic reinvestment allows for accumulation of additional units of the fund
  • The major benefit of automatic reinvestment is compounding
  • The benefit of automatic reinvestment is often lost on account of the heavy load charge on the reinvestment

Answer :The benefit of automatic reinvestment is often lost on account of the heavy load charge on the reinvestment

An equity fund can be said to be concentrated when


Options are :

  • when it invests in only in two or three stocks
  • when it invests in may companies of the same sector
  • when top ten holdings account for more than 50% of net assets invested
  • when top ten holdings account for more than 25% of net assets invested

Answer :when top ten holdings account for more than 50% of net assets invested

CAIIB 2020 Bank Financial Management Mock Tests Set 6

An investor wishes to switch between a money market mutual fund and an equity fund. What would you advise him?


Options are :

  • It would be better to stick to one type of fund, the one that meets his investment objective.
  • He should keep switching parts of his investment from the equity fund to the money market fund as the market rises and switch back to the equity fund when the market falls
  • He should switch from the money market fund to the equity fund in a rising market and switch back to money market fund when the market falls
  • none of the above

Answer :He should keep switching parts of his investment from the equity fund to the money market fund as the market rises and switch back to the equity fund when the market falls

PMJJBY is a _______  cover Term Life Insurance Scheme, renewable for the same period, offering life insurance cover for death due to any cause.


Options are :

  • 1 Year
  • 2 Year
  • 5 Year
  • Life Long

Answer :1 Year

The premium payable is under PMJJBY is _________per annum per subscriber.


Options are :

  • ?330
  • ?17
  • ?127
  • ?27

Answer :?330

CAIIB 2020 Bank Financial Management Mock Tests Set 7

For subscribers enrolling in PMJJBY for the first time on or after 01st June 2016, insurance benefit shall not be available for death (due to any cause other than accident) occurring during the first _______ from the date of enrolment into the scheme,.


Options are :

  • 30 Days
  • 15 Days
  • 45 Days
  • 60 Days

Answer :45 Days

Out of ?330 Premium for PMJJBY, Insurance Premium to LIC /other insurance company is -


Options are :

  • ?289 per annum per member.
  • ?30 per annum per member.
  • ?11 per annum per member.
  • ?127 per annum per member.

Answer :?289 per annum per member.

Contrary to other Life Insurance products, benefit under PMJJBY is payable only to nominee of the insured on the death of the insured. Why is there no maturity benefit or surrender value, which is available in normal life insurance policies?


Options are :

  • Because PMJJBY is a pure Term Insurance Policy.
  • Because PMJJBY is a pure Endowment Policy.
  • Because PMJJBY is a Death Coverage Insurance Policy.
  • Because PMJJBY is a Risk Cover Policy.

Answer :Because PMJJBY is a pure Term Insurance Policy.

CAIIB 2020 Bank Financial Management Mock Tests Set 8

The Benefit Under PMSBY in case of total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot-


Options are :

  • ?1,00,000
  • ?1,50,000
  • ?2,00,000
  • ?3,00,000

Answer :?2,00,000

What is the age eligibility under PMSBY?


Options are :

  • 18 to 70 years
  • 18 to 50 years
  • 18 to 55 years
  • 18 to 60 years

Answer :18 to 70 years

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