RETAIL BANKING MCQ-1
Q.1. What is retail Banking?
a. Banking targetted at corporates
b. Banking focused towards weaker class segment
c. Banking deals with individuals and lends them money
d. Banking deals with wholesalers for deposits source
e. Both (a) and (c)
Q.2. Characteristics of retail banking?
a) Targeted at individual customers, and mass market segment
b) Offer various liability, assets and service products to individuals
c) Both (a) and c)
d) Delivery model of ATMs/internet and mobile banking
e) All above
Q.3. What are the advantages of retail Banking?
a) Spread of risk across customers /customers loyalty and attractive interest spreads.
b) Spread of credit risk to diversified customers and lesser volatility in demand and credit cycle
c) Large number of customers with selection possibility by scroing system.
d) Both and (a) and (c)
e) Both (d) and (b)
Q.4. Mark the problems in retail banking?
(a) Managing large number of customers and /or rapid evolution of services.
(b) Costs of maintaining low value transactions, (c) Higher
(d) delinquencies is unsecured retail loans and credit card receivables. All of above
(e) Both (a) and (c)
Q.5. Reasons for retail banking in India are :-
(a) Growing urban population/higher disposable income/increase in mass affluents space and explosion of service economy. (b) Foreign banks and private sector banks seriously looking at the bottom of customers alongwith credit and debit cards receivables.
(c) Despite credit and deposits growth, banking access remains limited to few sections of the population, (d) Both (b) and (c),
(e) Both (a) + (b)
Q.6. Which is relevant to bank's balance sheet?
(a) ABSA (b) NASA (c) CASA (d) NBFC Q.7.Define the retail assets under Retail Banking?
(a) Housing loans/consumer durables /credit card receivable
(b) Auto loans/personal loans/loan against shares and debenture
(c) ECS Loans/EFT Loans/CASA Loans
(d) Both (a) and (c)
(e) Both (a) and (b) only
Q.8. Which is highest in number of commercial banks in India?
a) Branches
b) ATMs
c) Extension Counters
d) Mobile Banking
e) Internet Banking
Q.9. What is the contribution of bank's retail assets to Gross Domestic Product (GDP) in India?
( a ) 6 % ( b ) 1 5 % ( c ) 3 3 % ( d ) 2 4 % ( e ) 3 %
Q.10. What is not a constraint in Retail Banking?
a. ManaginglargenumberofclientsinabsenceofROBUSTITsystem
b. Rapid evolutionofservices
c. Maintaining ATMscentres withlow costs
d. Unsecuredretail loansand creditand receivables amount
Maintainingnetinterestmarginof2%inhousingloansbeyond75lakhsandabove.
Q.11. What is business model for retail banking in India?
a. Strategicbusinessunitapproach
b. Departmental Approach
c. Integratedapproach
d. Any oneof above
e. Both(a) and(b) only
Q.12. Givethenamesofforeignbankswhichenteredtheretailbankingactivitiesbutwhennotabletoachievethebusinessobjectivesmovedoutofbusiness?
a. BNPParibas
b. AmericanExpress
c. ABNAmro(Now RSB) bank
d. CitiBank
e. All (a) to (c)
Q.13. In retail banking which business model is adopted generally by Public Sector Banks?
a. Strategic Business Unit
b. Departmental Approach
c. IntegratedApproach
d. Managementby ObjectiveApproach
Q.14. Which business model in retail banking is do adopt by new generation private sector banks
a) Strategicbusinessunitapproach
b) Departmental Approach
c) Integrated approach(partof overall business plan)
(d) Managementby Objective Approach
Q.15. During 1990s, certain foreign banks went for business model in retail banking, but after certain years?
a. Continued with their business inspite of being unprofitable
b. Changed their focus with some strategic changes
c. Movedout of the business
d. None of above
Q.16. Discuss the liability products offered to retail banking customers?
a. Savings Accounts
b. Current Accounts/Term depositaccounts
c. Housing Loans/consumer durables/auto loans/credit-cards easy payments
d. Both (a) + (b)
e. All (a) to (c)
Q.17. In Liability products of retail banking what are different value propositions?
a) ATMs/Debit cards/Credit Cards/Multicity cheques, built in with savings A/c
b) Internetbanking/phonebanking/mobilebankingtagginggroupinsuranceproductstolifeandnon-life/moneysweepfacilitiesfromsavingstofixed deposits.
c) Both (a) and (b)
d) Auto overdraft facility only
Q.18. Retail asset financing is a major component of retail banking. Discuss what are those assets?
a. Housing Loans/Loan against rental receivables
b. Consumer durableloans /credit cards/salary overdraft
c. Auto loans/personal loans/loans against securities
d. All above
e. Only (a) and (c)
Q.19. Discuss the other services which are tagged under retail banking?
a) Housingloan/consumerdurablesloan/autoloans/personalloan/creditcardreceivables
b) Saving/term/currentdeposits
c) Debit Cards/ATMcards/telephonebanking/mobilebanking
d) Internetbanking/dematservices/brookingservices/insurancepolicies/mutualfunds/saleofgoldcoins/wealthmanagementservices
e) Both (a) and (c)
Q.20. Processing of services in retail banking is basically approached, from which dimension?
a. In-house resource
b. Some products processed in house and some are outsourced
c. Outsourcing of entire process
d. AUabove
Q2I. The entire process for products and services in retail banking is done though in house resource by which category of banks?
a. Public Sector Bank (PSB)
b. Old Private Sector and PSBs
c. New Private Sector Banks
d. Foreign Banks
Q.22. Banks adopt different process models for retail asset products and services, to build absolute process efficiencies?
a. Centralised retail asset processing centres
b. Centralised processing for some assets only
c. Regional processing hubs
d. Stand alone processing at branches (e) Any of above
Q.23. What are the process models which commonly banks adopt for retail liability?
a. Centralised processing for opening of account/issue of PB/ Cheque book/ATM card
b. Regional processing Hubs, all above activities
c. Opening of SB A/cs at branches add issue of PB and cheque book/ ATM Cards/PIN Mailers also at the stand alone,
(d) Any of above
Q.24. In pricing of products and services is based on certain fundamental parameters. Which are those parameters?
a) Market dynamics/risk perception/return expectations/customer profile
b) Tenor/duration/resources position/asset-liability management position
c) Any of above
d) Both (a) and (b)
25. Pricing of products and services in banks is mainly driven on the basis of bases?
a. Asset Liability Management
b. Regulatory advices from RBI
c. Structured step up pricing practice
d. Both (a) and (b)
Q.26. Price structuring for productsand services is attempted by banks in the following ways -
(a) Stand alone pricing for different services
(b) Special concessional quotes for high net worth depositors and retail depositors
(c) Bundledpricing/Holisticpricingbasedontotalrelationship(d)Allabove(e) Any of above
Q.27. Why structuring is adopted by banks in retail banking?
Offerholisticpricingacrossofspecificbundlingofservicessothetotalpricepropositionbecomesattractivecustomer Offerholisticpricingacrossofspecificbundlingofservicessothetotalpricepropositionbecomesprofitabletobank
Offerholisticpricingacrossofspecificbundlingofservicessothetotalpricepropositionbecomesattractivetohighnetworthclientsonly d) All above
Q.28. Which category of banks adopt price bundling of product and services?
(a) Public sector banks (b) Private sector banks
(c) Foreign banks
(d) Both (b) and (c)
Q.29. Publicsectorbanks(nationalised+ IDBIbank+ SBIand 5 associatesand Bhartiya Mahilla Bank Ltd.) havepriceconcernsaswellasrebatesin pricingstructure. Whatisthebasisofitsapplication?
a) Volumes of transaction
b) Quantum
c) Relationship with bank d) All above
30. Banksdohavestructureforpricingadditionalmodels. Underitwhatarebenefitsmadeavailabletocustomersotherthanrebatesofdiscountsas alternativepricingpropositions?
(a) Free remittance facilities
(b) Issue of demand drafts free of charges
(c) Waiver of service or processing charges (d) All above e) Anyofabove
Q.31. Technologyandretailbankingareinseparable.Technologyistheenablerforbuildingandtranslatingacustomerdatabaseintoretailbankingbusiness.Suchdataareusable to
a. Increase the scope for cross selling
b. Increase thescopeforup-selling
c. Get due about the level to which data base is organised
d. aII above
e. Any one of above
Q.32. Distinguish retail banking with corporate banking and state which is retail banking?
a. Individualssegment/massmarket/businesstocustomerapproach
b. Wholesaleclients/smallersegment/businesstobusinessapproach
c. Highticket size/high risk/low returns/monitoring less laborious high depositcost
(d) Both (b) and (c)
Q.33. What special features are there in retail banking compared to wholesale banking?
a) Low NPA impact
b) Cost of deposits lesser
c) Monitoring of advances less laborious
d) Both (a) and (b)
Q.34. Towhichtypeofbankingwegethigherreturns/lesserrisk/cheapercostofdeposits/impactof NPAlesser/Lowticketsizeofloanetc.?
a. Retail Banking
b. Wholesale Banking
c. B2BBanking
(d) Corporate Banking
Q.35. What is the latest level of technology in Public Sector Banks?
ALPM
a) Single Serverenvironment
b) Corebankingsolution, C) singleplatformenvironment(d) Truncation
Q.36. Which implementation model banks adopt in retail banking processes?
a. Horizontally organisedmodel
b. Vertically organised model
c. Predominantlyvertically organised model
d. Predominantly Horizontallyorganisedmodel
e. Anyone of above
Q.37. Whenis the horizontal model adoptedin retail banking?
a. Level of customer information available in a single platform
b. Offeringmultipleproducts/services
c. Offering services across assets, liabilities and other services
d. All of above
Q.38. Whentheverticallyorganisedmodelprovidesfunctionalityunderretailbanking?
a) Centralised Tistomer data base
b) Common informations availability to other models
c) Scope for enlarging the scope for cross-selling and up selling d )All above
Q.39. Which concept of retail banking is adopted under standard norm by PSBs in India?
a. Horizontally organisedmodel
b. Vertically organised model
c. Predominantlyvertically organised model
d. Predominantlyhorizontally organisedmodel
Q.40. What are the basic structure of retail banking?
a) Retail Assets
b) Retail Liability ,c )Third Party Products, d) All above
ANSWER SHEET-
a. Banking targetted at corporates
b. Banking focused towards weaker class segment
c. Banking deals with individuals and lends them money
d. Banking deals with wholesalers for deposits source
e. Both (a) and (c)
Q.2. Characteristics of retail banking?
a) Targeted at individual customers, and mass market segment
b) Offer various liability, assets and service products to individuals
c) Both (a) and c)
d) Delivery model of ATMs/internet and mobile banking
e) All above
Q.3. What are the advantages of retail Banking?
a) Spread of risk across customers /customers loyalty and attractive interest spreads.
b) Spread of credit risk to diversified customers and lesser volatility in demand and credit cycle
c) Large number of customers with selection possibility by scroing system.
d) Both and (a) and (c)
e) Both (d) and (b)
Q.4. Mark the problems in retail banking?
(a) Managing large number of customers and /or rapid evolution of services.
(b) Costs of maintaining low value transactions, (c) Higher
(d) delinquencies is unsecured retail loans and credit card receivables. All of above
(e) Both (a) and (c)
Q.5. Reasons for retail banking in India are :-
(a) Growing urban population/higher disposable income/increase in mass affluents space and explosion of service economy. (b) Foreign banks and private sector banks seriously looking at the bottom of customers alongwith credit and debit cards receivables.
(c) Despite credit and deposits growth, banking access remains limited to few sections of the population, (d) Both (b) and (c),
(e) Both (a) + (b)
Q.6. Which is relevant to bank's balance sheet?
(a) ABSA (b) NASA (c) CASA (d) NBFC Q.7.Define the retail assets under Retail Banking?
(a) Housing loans/consumer durables /credit card receivable
(b) Auto loans/personal loans/loan against shares and debenture
(c) ECS Loans/EFT Loans/CASA Loans
(d) Both (a) and (c)
(e) Both (a) and (b) only
Q.8. Which is highest in number of commercial banks in India?
a) Branches
b) ATMs
c) Extension Counters
d) Mobile Banking
e) Internet Banking
Q.9. What is the contribution of bank's retail assets to Gross Domestic Product (GDP) in India?
( a ) 6 % ( b ) 1 5 % ( c ) 3 3 % ( d ) 2 4 % ( e ) 3 %
Q.10. What is not a constraint in Retail Banking?
a. ManaginglargenumberofclientsinabsenceofROBUSTITsystem
b. Rapid evolutionofservices
c. Maintaining ATMscentres withlow costs
d. Unsecuredretail loansand creditand receivables amount
Maintainingnetinterestmarginof2%inhousingloansbeyond75lakhsandabove.
Q.11. What is business model for retail banking in India?
a. Strategicbusinessunitapproach
b. Departmental Approach
c. Integratedapproach
d. Any oneof above
e. Both(a) and(b) only
Q.12. Givethenamesofforeignbankswhichenteredtheretailbankingactivitiesbutwhennotabletoachievethebusinessobjectivesmovedoutofbusiness?
a. BNPParibas
b. AmericanExpress
c. ABNAmro(Now RSB) bank
d. CitiBank
e. All (a) to (c)
Q.13. In retail banking which business model is adopted generally by Public Sector Banks?
a. Strategic Business Unit
b. Departmental Approach
c. IntegratedApproach
d. Managementby ObjectiveApproach
Q.14. Which business model in retail banking is do adopt by new generation private sector banks
a) Strategicbusinessunitapproach
b) Departmental Approach
c) Integrated approach(partof overall business plan)
(d) Managementby Objective Approach
Q.15. During 1990s, certain foreign banks went for business model in retail banking, but after certain years?
a. Continued with their business inspite of being unprofitable
b. Changed their focus with some strategic changes
c. Movedout of the business
d. None of above
Q.16. Discuss the liability products offered to retail banking customers?
a. Savings Accounts
b. Current Accounts/Term depositaccounts
c. Housing Loans/consumer durables/auto loans/credit-cards easy payments
d. Both (a) + (b)
e. All (a) to (c)
Q.17. In Liability products of retail banking what are different value propositions?
a) ATMs/Debit cards/Credit Cards/Multicity cheques, built in with savings A/c
b) Internetbanking/phonebanking/mobilebankingtagginggroupinsuranceproductstolifeandnon-life/moneysweepfacilitiesfromsavingstofixed deposits.
c) Both (a) and (b)
d) Auto overdraft facility only
Q.18. Retail asset financing is a major component of retail banking. Discuss what are those assets?
a. Housing Loans/Loan against rental receivables
b. Consumer durableloans /credit cards/salary overdraft
c. Auto loans/personal loans/loans against securities
d. All above
e. Only (a) and (c)
Q.19. Discuss the other services which are tagged under retail banking?
a) Housingloan/consumerdurablesloan/autoloans/personalloan/creditcardreceivables
b) Saving/term/currentdeposits
c) Debit Cards/ATMcards/telephonebanking/mobilebanking
d) Internetbanking/dematservices/brookingservices/insurancepolicies/mutualfunds/saleofgoldcoins/wealthmanagementservices
e) Both (a) and (c)
Q.20. Processing of services in retail banking is basically approached, from which dimension?
a. In-house resource
b. Some products processed in house and some are outsourced
c. Outsourcing of entire process
d. AUabove
Q2I. The entire process for products and services in retail banking is done though in house resource by which category of banks?
a. Public Sector Bank (PSB)
b. Old Private Sector and PSBs
c. New Private Sector Banks
d. Foreign Banks
Q.22. Banks adopt different process models for retail asset products and services, to build absolute process efficiencies?
a. Centralised retail asset processing centres
b. Centralised processing for some assets only
c. Regional processing hubs
d. Stand alone processing at branches (e) Any of above
Q.23. What are the process models which commonly banks adopt for retail liability?
a. Centralised processing for opening of account/issue of PB/ Cheque book/ATM card
b. Regional processing Hubs, all above activities
c. Opening of SB A/cs at branches add issue of PB and cheque book/ ATM Cards/PIN Mailers also at the stand alone,
(d) Any of above
Q.24. In pricing of products and services is based on certain fundamental parameters. Which are those parameters?
a) Market dynamics/risk perception/return expectations/customer profile
b) Tenor/duration/resources position/asset-liability management position
c) Any of above
d) Both (a) and (b)
25. Pricing of products and services in banks is mainly driven on the basis of bases?
a. Asset Liability Management
b. Regulatory advices from RBI
c. Structured step up pricing practice
d. Both (a) and (b)
Q.26. Price structuring for productsand services is attempted by banks in the following ways -
(a) Stand alone pricing for different services
(b) Special concessional quotes for high net worth depositors and retail depositors
(c) Bundledpricing/Holisticpricingbasedontotalrelationship(d)Allabove(e) Any of above
Q.27. Why structuring is adopted by banks in retail banking?
Offerholisticpricingacrossofspecificbundlingofservicessothetotalpricepropositionbecomesattractivecustomer Offerholisticpricingacrossofspecificbundlingofservicessothetotalpricepropositionbecomesprofitabletobank
Offerholisticpricingacrossofspecificbundlingofservicessothetotalpricepropositionbecomesattractivetohighnetworthclientsonly d) All above
Q.28. Which category of banks adopt price bundling of product and services?
(a) Public sector banks (b) Private sector banks
(c) Foreign banks
(d) Both (b) and (c)
Q.29. Publicsectorbanks(nationalised+ IDBIbank+ SBIand 5 associatesand Bhartiya Mahilla Bank Ltd.) havepriceconcernsaswellasrebatesin pricingstructure. Whatisthebasisofitsapplication?
a) Volumes of transaction
b) Quantum
c) Relationship with bank d) All above
30. Banksdohavestructureforpricingadditionalmodels. Underitwhatarebenefitsmadeavailabletocustomersotherthanrebatesofdiscountsas alternativepricingpropositions?
(a) Free remittance facilities
(b) Issue of demand drafts free of charges
(c) Waiver of service or processing charges (d) All above e) Anyofabove
Q.31. Technologyandretailbankingareinseparable.Technologyistheenablerforbuildingandtranslatingacustomerdatabaseintoretailbankingbusiness.Suchdataareusable to
a. Increase the scope for cross selling
b. Increase thescopeforup-selling
c. Get due about the level to which data base is organised
d. aII above
e. Any one of above
Q.32. Distinguish retail banking with corporate banking and state which is retail banking?
a. Individualssegment/massmarket/businesstocustomerapproach
b. Wholesaleclients/smallersegment/businesstobusinessapproach
c. Highticket size/high risk/low returns/monitoring less laborious high depositcost
(d) Both (b) and (c)
Q.33. What special features are there in retail banking compared to wholesale banking?
a) Low NPA impact
b) Cost of deposits lesser
c) Monitoring of advances less laborious
d) Both (a) and (b)
Q.34. Towhichtypeofbankingwegethigherreturns/lesserrisk/cheapercostofdeposits/impactof NPAlesser/Lowticketsizeofloanetc.?
a. Retail Banking
b. Wholesale Banking
c. B2BBanking
(d) Corporate Banking
Q.35. What is the latest level of technology in Public Sector Banks?
ALPM
a) Single Serverenvironment
b) Corebankingsolution, C) singleplatformenvironment(d) Truncation
Q.36. Which implementation model banks adopt in retail banking processes?
a. Horizontally organisedmodel
b. Vertically organised model
c. Predominantlyvertically organised model
d. Predominantly Horizontallyorganisedmodel
e. Anyone of above
Q.37. Whenis the horizontal model adoptedin retail banking?
a. Level of customer information available in a single platform
b. Offeringmultipleproducts/services
c. Offering services across assets, liabilities and other services
d. All of above
Q.38. Whentheverticallyorganisedmodelprovidesfunctionalityunderretailbanking?
a) Centralised Tistomer data base
b) Common informations availability to other models
c) Scope for enlarging the scope for cross-selling and up selling d )All above
Q.39. Which concept of retail banking is adopted under standard norm by PSBs in India?
a. Horizontally organisedmodel
b. Vertically organised model
c. Predominantlyvertically organised model
d. Predominantlyhorizontally organisedmodel
Q.40. What are the basic structure of retail banking?
a) Retail Assets
b) Retail Liability ,c )Third Party Products, d) All above
ANSWER SHEET-
|
1
|
C
|
2
|
E
|
3
|
E
|
4
|
D
|
5
|
D
|
6
|
A
|
7
|
E
|
8
|
B
|
9
|
A
|
10
|
C
|
|
11
|
D
|
12
|
E
|
13
|
B
|
14
|
A
|
15
|
C
|
16
|
D
|
17
|
C
|
18
|
E
|
19
|
E
|
20
|
D
|
|
21
|
B
|
22
|
E
|
23
|
C
|
24
|
D
|
25
|
D
|
26
|
D
|
27
|
A
|
28
|
D
|
29
|
D
|
30
|
D
|
|
31
|
D
|
32
|
A
|
33
|
D
|
34
|
A
|
35
|
C
|
36
|
E
|
37
|
D
|
38
|
D
|
39
|
A
|
40
|
D
|
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