RETAIL BANKING MCQ-2

UNIT -16: TEST YOURSELF
Q.370. From which stage of  loan, the appraisal process    begin?
a. From  application form
b. Receipt of  application form duly filled  in
c. From the time application is  processed
d. When  applicant  is interviewed
Q,371, What documents are to be submitted to bank for availing home   loan?
a. Proof of Identity/proof of residence/proof of business  address
b. Agreement  of sale copy/statement of bank  a/c or  Passbook
c. Copy of approved plan/commencement of construction permission from local body/valuation of property  in  case  of  purchase under resale/search report/non-encumbrance certificate from bank's advocate for the last 30 years
d. All above
Q.372. Appraisal of  Loan comprises -
a. Validation of  information  submitted by applicant
b. Processing of  loan application
c. Checking of  information  against risk management  practices
d. Both (b) and  (c)
Q.373. There  are different types of documentation, such   are-
a. Security  documents
b. Property documents
c. Second  Mortgage document
d. Any of above
Q.374. Banks obtain documents prior to disburseMent of    loan-
a. DP Note and term loan agreement/guarantee agreement from   guarantors
b. Stamped Memorandum of equitable mortgage for deposit of title deeds in favour of bank or registered mortgage or power of attorney in favour of  bank.
c. Valuation report from registered valuer when property is a second sale or old property authorising the bank to get opinion on the borrower's  credits from CIBIL/Experian/Equifax,
d. All above
Q.375. List of documents to be obtained in case of second   mortgage-
a. Letter from the borrower to prospective mortgagee bank for extending the earlier mortgage to secure the loan/letter from prior mortgagee to the subsequent mortgagee, stating that existing mortgage charge will submit and will rank prior to proposed charge.
b. Exchange of Pari Passu letter/inter se pari passu agreement/ letter from second charge holder bank to first charge holder on the fixed assets
c. Some of (a) and some of   (b)
d. All a+b
Q.376. Monitoring of advances relate to   -
a) Post  sanction activities/ensure proper  end  use  of funds
b) Periodical inspection /follow up for recovery/restructuring of  loan
c) Both (a) +  (b)
d) None
Q.377. Home loans have to  be restructured when   -
a) Delay  turn  into defaults
b) Willingness  to repay the loan is established in the    borrower
c) Cash flows are inadequate to pay as per set EMI but enough to pay the loan over a longer period of time
d) All above
Q.378. Other circumstances when restructure of loan may be considered when   -
a) Unforeseen/major illness/social functions requiring significant outlay of funds in the family of the borrowers/death or disability of borrower
b) Increase of salaried class borrowers are on LOSS OF PAY due to lock out/strike/disciplinary action/delayed payment  of

salary by employers/delayed completion of housing project (c )Both (a) + (b) (d) Some of (a) and some of   (b)
Q.379. Parameters for credit Rating require annual review of   loan-
c) Repayment record of past 12 months/documentation as outstanding loan sanctioned terms/percentage of security coverage of outstanding loan
d) Land value as percentage of total properly value/improvement in income level as per income tax assessment/plus including rental income at post sanction stage/liquidity of borrower in terms of deposits, to cover certain minimum number of EMIs
e) Repayment record in past 12 months/improvement in income level/liquidity of borrower
f) Both (a) + (b)
Q.380. Closure of any loan account can be   -
g) Repayment of schedule EMIs
h) Repayment of outstanding loan balance alongwith due interest/servicing charges etc.
i) Both (a) + (b)
j) Any of a or b
Q.381. After the closure of loan account, the bank has    to  -
k) Cancel the charge on moveable or immovables properties
l) Return the documents of the property and or execution of deed of conveyance for registered mortgage, already done
m) Any of above
n) Both (a) + (b)
Q.382. Power of  Attorney means and includes  -
o) Formal instrument by which authority is conferred on an agent
p) Any instrument empowering a specified person to act for and in the name of person executing it.
q) Any of above
r) Both (a) + (b)
Q.383. Power of  Attorney can be either  -
s) Revocable/General
t) Special/Irrevocable /even after death of executant
u) Both (a) + (b)
v) Any of (a) or  (b)

Q.384. Documents for Power of attorney are required to be registered under Registration Act and the executant has to  be  present  for  registration. Are  there any exceptions to it?
w) Bodily infirmity of serious inconvenience to appear
x) In jail/exempt by law from personal appearance
y) Sale of immovable property by court or by revenue officer arise out of operation of law
z) Any of above
Q.385. Visit to borrowers charges received by banks, under housing loan should be credited to    -
aa) Commission a/c bb)  Interest a/c
cc)   Current a/c
dd)  Sundry recoveries a/c
Q.386. To consider the loan under Housing loan, which or the    following statements would be proper?
ee)  Property singly held but spouse becomes co-borrower
ff) Property purchased in joint name with spouse but the regular income from all sources insufficient gg)  Flat owned by parents and son/daughter having steady income joins as guarantor
hh)     Flat to be purchased is for rental income. Rental income, after taxes would meet out only 50% of EMI
Q.387. Harish Goyal approached a bank in Mathura (UP) for in principle sanction, for purchase of a 3 storied house for 15 lakhs. This sanction would be valid    for  -
ii) One Month jj) 3 month kk)   2 months ll) One year
Q.388. Who  can be a  co-applicant in  any Housing Loan?
mm) Property owned by such applicant alognwith others


nn) Property owned by one person but bank wants additional person for regular repayment oo) Property stands in the name of a trust and trustee becomes guarantor to it
pp) Both (a) + (b)
Q.389. A repayment holiday may be allowed for a home loan when house/flat is under construction the payment to builder is done in installment. Such holiday is  called-
qq)   Check off rr)    EMI Reset ss) Moratorium tt)    Parri Passu
Q.390. What is mortgage?
uu)  Transfer of interest in specific immovable property for security
vv) For the payment of money advanced an existing or future debt ww) Both (a) + (b)
xx)  None
Q.391. Kinds  of  mortgages are -
yy)   Simple or registered
zz)   Equitable mortgage/English
aaa) Conditional sale/usfructury mortgage bbb) All above
Q.392. Which kind of mortgages are generally used, in housing   loan?
ccc) Simple ddd) Registered
eee) Deposit of Title Deeds fff)   Any of above
Q.393. Registration of mortgage must be done, from the date of execution within   -
ggg) 1 month
hhh) 2 months
iii) 3 months jjj)    4 months
Q.394. In a registered mortgage whether there is any requirement for witnesses and if so what is the minimum number of such witnesses?
kkk) Yes - essential -2 witnesses lll) Yes-essential 3 - witnesses mmm)  Not required
nnn)     Not required since it is t.o be   registered
Q.395. The essential requirements of mortgage under deposit of the deeds are   -
ooo) Existing debt or future Title deeds of immovable property ppp) Deposit be in notified town/district
qqq) All above
Q.396. The expression title-deeds mean rrr) Registered saledeed in original sss)  Probated will
ttt) Certificate of sale, issued by court uuu) Any of above
Q.397. A receipt for payment of revenue may be proof of   ownership?
vvv) May not be conclusive proof of ownership www)   May be proof of ownership
xxx) Falls within certificate of sale issued by court hence proof of ownership
yyy)After payment of necessary stamp duty to    court
Q.398. Right of foreclosure is available to   -
zzz) Mortgagor in mortgage by conditional sale aaaa)   Mortgagee in case of equitable mortgage
bbbb) Mortgagee when mortgagor fails to pay on due date cccc) None

Q.399. Mortgagor  has right  to redemption or mortgage  to-
dddd)   Subsequent mortgagee
eeee) Bank which is not going to mortgage ffff) Sub-mortgagee
gggg)    Any of a + b
Q.400. Margin in  any loan means  -
hhhh)   Share of borrower in total amount of loan
iiii)   Share of lender in total amount of loan jjjj) Share of guarantor in total amount of loan kkkk)    Share of profit
Q.401. Tenure  of  Land means
llll)  Freehold
mmmm) Leasehold nnnn)   State owned
oooo)   Any of above
Q.402. Documents of  title does not include  -
pppp)   Original title deeds
qqqq) Certified copies of title deeds issued by Registrar of assurances rrrr) Xerox copies of title deeds
ssss)     Certificate of sale issued by  court


Q.403. Valuation of any property can be done  by   -
tttt) Price paid at prevailing rate for similar property uuuu)   Present market trend
vvvv) Registered Valuer's valuation of property wwww) Certificate  issued  by CIBIL/Experian


Q,404. A building, when it ceases to    yield desired income the
property has to be replaced or built, for further period. Life of a building varies between 40 to 100 years. The amount set  aside for the purpose of recovering the original funds is called   -
xxxx) Maintenance Fund yyyy)    Sinking Fund
zzzz)   Reserve Fund aaaaa) Depreciation Fund


What  is a  retail banking?
bbbbb) Banking  targeted at corporates ccccc)   Banking focused towards class  market
ddddd) Banking deal with individuals and lends   them money eeeee) Banking deals with wholesalers for deposits   source
fffff)     Both (a) and (c)


Discuss  characteristics  of  retail banking?
ggggg) Targeted at individual customers, and mass market    segment
hhhhh) Offer various liability, asset and service products  to   individuals
iiiii)  Both (a) and (b)
jjjjj) Delivery model of ATMs/internet and mobile banking kkkkk)  Both (a) (b) and (d)


What are the  advantages of retail  banking?
lllll)      Spread of risk across customers/ customers loyalty and attractive interest spreads
mmmmm) Spread of credit risk to diversified customers and lesser volatility in demand and credit cycle nnnnn) Large number of customers with selection    possibility by scoring system
ooooo) Both (a) and (c)
ppppp) Both (d) and (b)


Mark the  problems in retail  banking?
qqqqq) Managing large number of customers and /or rapid evolution    of service rrrrr)     Costs of maintaining low value transactions,  high

sssss) Higher delinquencies is unsecured retail loans and credit card receivables ttttt)     All of above
uuuuu) Both (a) and (c)


Reasons for retail banking in India are    :-
vvvvv) Growing urban population/higher disposable income/increase in mass affluent space and explosion of service   economy
wwwww) Foreign banks and private sector banks seriously looking at the bottom of customers alongwith credit and debit card    receivables
xxxxx)  Despite credit and deposits growth, banking access remains limited to few sections of the   population
yyyyy)  All above
For  what purposes,housing loan can be  sanctioned by  banks?
zzzzz)  Purchase of new house/old house or flat and for extension of owned house. Old house is age should not be more than 5 to 20 years
aaaaaa) Purchase of new flat/house/land and/or extension of house/ construction  of  new house/flat
bbbbbb) Both (a) (b) cccccc)None of  above
How much loan amount and period can be sanctioned under housing loan to a middle class family's individuals who is aged 25  years?
dddddd) Loan upto 75 lakhs and upto  .30 years eeeeee) Loan upto 50 lakhs and period upto   20 years ffffff)    Loan upto 100 lakhs and period upto 25 years   gggggg) Both (b) and (c)
Considering floating interest rate @10.150/0 on housing loan, how the loan quantum is decided by banks?
hhhhhh) Age of applicant and repaying capacity based on total earnings minus 60% for monthly  expenses
iiiiii)Age of applicant and repaying capacity based on total earnings minus under the ceiling of total deductions of 40% including housing loan proposed instalment
jjjjjj)Age of applicant and repaying capacity based on total earnings and total deduction. kkkkkk) Age immaterial and loans upto 5 crones to High Net Worth   individuals
What is the security taken by banks, under Housing loan   proposals?
llllll)First legal  mortgage of  the housing property  financed
mmmmmm) Equitable  mortgage  of  the  housing  property  financed,  which  should  be  in  the  name     of  the applicant of jointly with co-obligant, with clear   title
nnnnnn) Power of attorney issued to the bank by the applicant under clear title of the property oooooo) All above
Define the process flow of   ECS?
pppppp) Issuing of mandate by account holder   favouring beneficiary qqqqqq) It is registered with clearing house by   the beneficiary  rrrrrr)   Proceeds are credited to the a/c of  beneficiary
ssssss) It is registered with clearing house by the account holder tttttt)   All a+b+c
RTGS above 2.5 lakhs transactions are    processed
uuuuuu) Instantaneously
vvvvvv) Every 2 hours wwwwww) Before the business  hour
xxxxxx) Next working day
What are the obligations of  banks under  HEFT?
yyyyyy) Maintain security/integrity  and  efficiency of system zzzzzz) After execution of payment instruction those are irrevocable aaaaaaa) Payment of interest at bank rate, if   delayed payment bbbbbbb) All above
The characterisation of  RTGS are  -

ccccccc) Remittance and funds transfer are transmitted through  a series of process    inputs
ddddddd) Remittance  are  communicated  through  structured  messaging  process,  and  are  credited   on  a dynamic basis along with its   settlement.
eeeeeee) Settlement for the message made on a gross basis from the liquidity maintained by the sender bank.
fffffff)  All above
RTGS applicability in retail  banking  is
ggggggg) Limited
hhhhhhh) Unlimited
iiiiiii) Partially limited jjjjjjj)     No applicability
RTGS has made a jump in   transactions?
kkkkkkk) Volume lllllll)    Value
mmmmmmm) Both volumes and value nnnnnnn) Length and  Breadth
For esteem needs of individual, what service are   covered?
ooooooo) Special term deposits /second housing loans/home   decor loans ppppppp) Term  insurance  products/house improvement
qqqqqqq) Both (a) and (b) rrrrrrr) Any of (a) and (b)
For self actualization needs, what products and services are covered under retail banking? sssssss) Pensioners  loans/retirement  situations/pension  plans in insurance ttttttt) Senior citizen saving scheme /reverse   mortgage
uuuuuuu) Any of above
vvvvvvv) Both (a) and (b)
Discuss the expectations by the customers from the service quality of   banks?
a. Tangibles-Relability-Responsiveness
b. Assurance-Empathy ..
c. Courtesy-Credibility-Security
d. Both (a) and (b)
Discuss the measures needed to enhance service quality in bank services, with regard to savings deposits?
a. Need to improve dress code of the staff at    branch
b. Need    to improve transactions time at every branch and enhance, adequate number of channels in addressing customers needs
c. (c )Need to improve the faces of the computer operator who should be young below 30 and not above 30 years of age.
d. Both (a) and (b)
Housing loan should be sanctioned and disbursed to applicant from the present ceiling of 14 days, for ideal customer requirements?
wwwwwww) 10 working days
xxxxxxx) 7 working days
yyyyyyy) 5 days
zzzzzzz) Should  not  do hurriedly
PSBs have to enhance the service quality and for that what measures could be   taken?
a) Strengthen performance and recruit employees through training
b) Enhance range of products features and Customer friendly   modules
c) Customer's expectations never ends even under best performance hence no additional    measures
d) Both (a) and  (b)
The development of RTGS system is   for-
a) Need  for sound risk  management
b) sound  risk management in  large  value funds
c) sound risk management in small and large value    funds
d) Faster funds  transfer of small value  funds
Inter bank funds transfer systematic can be classified as   :-
a. Net settlement system

b. Gross settlement system
c. Both (a) + (b)
d. SWIFT Settlement
How the net position in RTGS is   calculated?
(a) Bilateral  or multilateral basis
(b) Sum of value of all transfer received minus the sum of value of all transfer sent
(c) Position at settlement  time
(d) All of above
Define  Internet Banking
(a) Network  adopting  a  common proprietary standard
(b) Worldwide  website  for  larger  heterogeneous computers
(c) Worldwide network of networks with various operating systems able to communicate with each other
(d) A quite and  easy  exchange of information
Internet is accessible through-
(a) Modem over telephone lines
(b) Terminals  overpersonal computer
(c) Improvement  overa lovely accessibleprivatenetworks
(d) Both (b) and (c)
Advantages of interest  are-
(a) Convenience to significant bank accountholders other than at bank   branches
(b) Everytransactiononecanchangepasswordforsubsequenttransactions
(c) Most users surf internet on smartphones rather than on fixed   broadband
(d) Above (a) + (b)
What is eventuality in Internet banking, for multiple   purposes?
(a) Net neutrality
(b) Safety against hackers
(c) Change of password after every  transaction
(d) Use of fixed broadband
Name the institution which does the work of money transfer business through 31000 transactions centres in 26  states
(a) NEFT
(b) RIGS
(c) FINO
(d) TCP
Disadvantages of Internet in India are-
(a) Surfing on smart phones
(b) Misutilisation of passwords, when given to other  person
(c) Safety broken by hackers and absence of net neutrality  d) All above


ANSWER-

370 A 371 D 372 A
373 D 374 D 375 D
376 A 377 D 378 C
379 D
380 C 381 C 382 C
383 D 384 D 385 D
386 C 387 D 388 A
389 C
390 C 391 D 392 D
393 D 394 A 395 D
396 D 397 A 398 A
399 D
400 A 401 B 402 C
403 D 404 B 405 C
406 C 407 B 408 D
409 A
410 C 411 B 412 A
413 B 414 B 415 B
416 A 417 A 418 D
419 B
420 A 421 A 422 A
423 B 424 B 425 B
426 B 427 C 428 D
429 C
430 A 431 D 432 A
433 C 434 D


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