RETAIL BANKING MCQ
Q.346. Entire financial needs of a customer extends to -
(a) Insurance
(b) Mutual Funds
(c) Demat accounts/broking services and wealth management solutions
(d) All above
Q.347. Banks are prohibited to offer other products as banks own products then how the banks are offering insurance/mutual funds and wealth management services?
(a) Through agency arrangements
(b) As NBFC
(c) As subsidiary
(d) Both (a) + (d)
Q.348. How the banks may enter mutual fund business? What are its terms and conditions stipulated by RBI?
(a) Act as agent of customers and at customer's risk
(b) Not acquiring of units of mutual funds from secondary market/ no buy back to units
(c) Loan/credit facility against unit of mutual funds as per RBI guidelines/retailing of units of mutual funds be confined to certain select branches
(d) All above
Q.349. For undertaking insurance business, banks are permitted to set up joint venture company. The eligibility criteria for Al participation are -
(a) Bank's networth not less than 500 crores/CRAR Not less than 10 percent/maximum equity participation in JV be 50% of paidup-ca pita l
(b) Reasonable level of NPAs/Net profit is the last 3 consenstive years/track record of performance of subsidiary if any should be satisfactory
(c) Bank can make investment upto 10% of networth of the bank or 50 crores
(d) Indian Overseas Bank/Allahabad Bank/HDFC/ICICI Bank
Q.350. Third party products distributed by banks are
a) Life insurance policies/Not life insurance policies
b) Mutual funds/demat and broking services
c) Hotel and travel booking
d) All above
Q.351. Distribution of insurance policies through bank-braches is termed as -
a) Securitisation
b) Bancassurance
c) Third Party product
d) Innovative banking
Q.352. Bancassurance means-
a) Package of financial services of both banking and insurance
b) Bonanza in terms of reduced price a single point
c) Increased return on assets
d) All above
Q.353. Advantages of Bancassurance are -
a) Cost effective channels for distribution
b) Widening of area for insurance companies, under rural areas
c) Optimum utilisation for existing customer relationship
d) All above
Q.354. Features of corporate agency model for distribution of products are -
a) Distributes the regular premium life policies
b) Distribute Hybrid combination of life policies
c) Banks receive commission for single premium policies @ 2% while for regular premium policies varies between 15 to 25%
d) All above
Q.355. Important features of group insurance products offered by banks are -
a) Value addition to bank products/group insurance is offered to cover the life of bank customers who have availed banks products
b) Such covers are fixed covers on death or accidental death and amount is fixed/other is dynamic cover to borrowal accounts on reducing basis with the repayment of loan
c) Bank offer such insurance as tagged facility/banks are reimbi'esed with marketing expenses of about 10% to 15% of the premium mobilised.
d) All above
Q.356. Non-IA insurance cover includes the features of -
a) Cover to building/machinery/stocks which are either mortgaged or hypothecated to banks
b) Generate fee based income ranging from 10 to 15%
c) Health policies are offered by banks on floaters basis covering the account holder and the family member (self+spouse+2 children) and also parents on additional payment of premium)
d) All above
Q.357. For mutual fund's wait sales PROPAGATE model is considered best for banks. What does this stands for?
a) PRO-Professional, PA-People appetite GATE-place or Door
b) Product-Risk-opportunities-people Appetite-GeographyAttributes-Training Education(All first word combined)
c) Potential-Reliance-Opportunities-Product Assurance-GenerosityAttention-Truth Endurance
d) None of above
Q358. In propagate model of mutual fund units distribution, let us see the relevance of each element-
a) Product-of different mutualfunds oncustomersegments and time preference /Risk-mutual funds do not guaranteeminimum returns/opportunities -
Mutualfundscreatewealth.Productswhichofferbetterreturnsoverperiod,willincreasereturns
b) People - People relate other employees of bank and external customers. Selection of marketing staff with right aptitude is needed/Appitite
- thepenchant of risk taking varies with customers across/Geography of the bank is the foremost advantage for thebanks.
c) Attribute - Attributes and their impact should be effectively communicated to the investing public.
a. Training - It is the axle on which the entire mutual fund distribution revolves.
b. Education - It is the duty of the staff of the bank to educate and guide the investing public. d) all above
Q.359. Demat account in banks and insurance companies, one of the very important components offered. It- is a process of-
a) Converting physical shares and life policies into electronic form
b) Dematerialised form
c) Paperless form
d) All above
Q.360. How to open a demat account?
a) Choose depositor participant /fill account opening form with DP/ sign agreement/submit-any document either (photograph-proof of residence-passport copy -telephone bill) Proof of identitypassport-photo driving licence
/voter ID card /PAN card
b) DP provides unique account number/demat account cannot be payable to either or survivor/transfer of demat account from one DP to another possible/demat account can be frozen for desired period.
c) Dematerialised securities are fungible assets - hence interchangeable /rematerialisation possible
d) All above
Q.361. Key function areas in wealth management are -
a) Financial planning/Portfolio strategy definition/asset allocation strategy a implementation
b) Portfolio management administration- performance evaluation and analytics/strategy review and modification
c) 'Both (a) + (b)
d) Some of (a) and some of (b)
Q.362. Advantages of wealth management to customers are -
a) Proper-tax planning for high networth income population/proper selection of investment strategy/Proper estate management and proper forward planning
b) Only tax planning/investment strategy/estate management (c) Only tax planning and estate management d)Investment strategy and forward planning
Q.363. Key challenges to wealth management companies are-
a) Highly personalised and customised services/evolving client profile/limited leveraging capabilities of technology
b) Intricate knowledge of cross functional domain
c) Both (a) + (b)
d) Some of (a) and some of (b)
Q.364. In wealth Management, wealth manager offers services like
(a) Advisory role/investment processing /custody-safekeeping and asset servicing/end to end investment life cycle management
(b) Investment decisions/investment planning and decision / execution/mandated to make financial planning throughout life
(c) Both (a) + (b)
(d) Wealth manager taps the mass affluent and super affluent
Q.365. Para-banking refers to -
(a) Distribution of life/non life insurance/mutual fund schemes
(b) Corporate agents for life insurance/Non-life-insurance and mutual funds
(c) Responsibility of banks under risk factor for life/Nonlife insurance and mutual fund units
(d) Both (b) + (c)
Q.366. As a corporate agent banks distribute following types of products - insurance -
(a) Life insurer and non - life insurer one each
(b) Life insurer one and non - life insurer two
(c) Any number of life insurer and non-life insurer
(d) None of above
Q.367. The number of mutual funds that a bank can distribute as a corporate a gent-
(a) One
(b) Two
(c) Five
(d) No limit
Q.368. Cross selling refers to .
(a) Selling additional products/services to existing customer
(b) Selling additional products/services to new customer
(c) Both (a) + (b)
(d) Selling bank products in exchange of other products
Q.369. Demat refers to-
(a) Converting physical shares in to electric form
(b) Physical shares after concession become fungible assets after demat have interchangeable identical
(c) Rematerialisation converts shares into demat
(d) Both (a) + (b)
(a) Insurance
(b) Mutual Funds
(c) Demat accounts/broking services and wealth management solutions
(d) All above
Q.347. Banks are prohibited to offer other products as banks own products then how the banks are offering insurance/mutual funds and wealth management services?
(a) Through agency arrangements
(b) As NBFC
(c) As subsidiary
(d) Both (a) + (d)
Q.348. How the banks may enter mutual fund business? What are its terms and conditions stipulated by RBI?
(a) Act as agent of customers and at customer's risk
(b) Not acquiring of units of mutual funds from secondary market/ no buy back to units
(c) Loan/credit facility against unit of mutual funds as per RBI guidelines/retailing of units of mutual funds be confined to certain select branches
(d) All above
Q.349. For undertaking insurance business, banks are permitted to set up joint venture company. The eligibility criteria for Al participation are -
(a) Bank's networth not less than 500 crores/CRAR Not less than 10 percent/maximum equity participation in JV be 50% of paidup-ca pita l
(b) Reasonable level of NPAs/Net profit is the last 3 consenstive years/track record of performance of subsidiary if any should be satisfactory
(c) Bank can make investment upto 10% of networth of the bank or 50 crores
(d) Indian Overseas Bank/Allahabad Bank/HDFC/ICICI Bank
Q.350. Third party products distributed by banks are
a) Life insurance policies/Not life insurance policies
b) Mutual funds/demat and broking services
c) Hotel and travel booking
d) All above
Q.351. Distribution of insurance policies through bank-braches is termed as -
a) Securitisation
b) Bancassurance
c) Third Party product
d) Innovative banking
Q.352. Bancassurance means-
a) Package of financial services of both banking and insurance
b) Bonanza in terms of reduced price a single point
c) Increased return on assets
d) All above
Q.353. Advantages of Bancassurance are -
a) Cost effective channels for distribution
b) Widening of area for insurance companies, under rural areas
c) Optimum utilisation for existing customer relationship
d) All above
Q.354. Features of corporate agency model for distribution of products are -
a) Distributes the regular premium life policies
b) Distribute Hybrid combination of life policies
c) Banks receive commission for single premium policies @ 2% while for regular premium policies varies between 15 to 25%
d) All above
Q.355. Important features of group insurance products offered by banks are -
a) Value addition to bank products/group insurance is offered to cover the life of bank customers who have availed banks products
b) Such covers are fixed covers on death or accidental death and amount is fixed/other is dynamic cover to borrowal accounts on reducing basis with the repayment of loan
c) Bank offer such insurance as tagged facility/banks are reimbi'esed with marketing expenses of about 10% to 15% of the premium mobilised.
d) All above
Q.356. Non-IA insurance cover includes the features of -
a) Cover to building/machinery/stocks which are either mortgaged or hypothecated to banks
b) Generate fee based income ranging from 10 to 15%
c) Health policies are offered by banks on floaters basis covering the account holder and the family member (self+spouse+2 children) and also parents on additional payment of premium)
d) All above
Q.357. For mutual fund's wait sales PROPAGATE model is considered best for banks. What does this stands for?
a) PRO-Professional, PA-People appetite GATE-place or Door
b) Product-Risk-opportunities-people Appetite-GeographyAttributes-Training Education(All first word combined)
c) Potential-Reliance-Opportunities-Product Assurance-GenerosityAttention-Truth Endurance
d) None of above
Q358. In propagate model of mutual fund units distribution, let us see the relevance of each element-
a) Product-of different mutualfunds oncustomersegments and time preference /Risk-mutual funds do not guaranteeminimum returns/opportunities -
Mutualfundscreatewealth.Productswhichofferbetterreturnsoverperiod,willincreasereturns
b) People - People relate other employees of bank and external customers. Selection of marketing staff with right aptitude is needed/Appitite
- thepenchant of risk taking varies with customers across/Geography of the bank is the foremost advantage for thebanks.
c) Attribute - Attributes and their impact should be effectively communicated to the investing public.
a. Training - It is the axle on which the entire mutual fund distribution revolves.
b. Education - It is the duty of the staff of the bank to educate and guide the investing public. d) all above
Q.359. Demat account in banks and insurance companies, one of the very important components offered. It- is a process of-
a) Converting physical shares and life policies into electronic form
b) Dematerialised form
c) Paperless form
d) All above
Q.360. How to open a demat account?
a) Choose depositor participant /fill account opening form with DP/ sign agreement/submit-any document either (photograph-proof of residence-passport copy -telephone bill) Proof of identitypassport-photo driving licence
/voter ID card /PAN card
b) DP provides unique account number/demat account cannot be payable to either or survivor/transfer of demat account from one DP to another possible/demat account can be frozen for desired period.
c) Dematerialised securities are fungible assets - hence interchangeable /rematerialisation possible
d) All above
Q.361. Key function areas in wealth management are -
a) Financial planning/Portfolio strategy definition/asset allocation strategy a implementation
b) Portfolio management administration- performance evaluation and analytics/strategy review and modification
c) 'Both (a) + (b)
d) Some of (a) and some of (b)
Q.362. Advantages of wealth management to customers are -
a) Proper-tax planning for high networth income population/proper selection of investment strategy/Proper estate management and proper forward planning
b) Only tax planning/investment strategy/estate management (c) Only tax planning and estate management d)Investment strategy and forward planning
Q.363. Key challenges to wealth management companies are-
a) Highly personalised and customised services/evolving client profile/limited leveraging capabilities of technology
b) Intricate knowledge of cross functional domain
c) Both (a) + (b)
d) Some of (a) and some of (b)
Q.364. In wealth Management, wealth manager offers services like
(a) Advisory role/investment processing /custody-safekeeping and asset servicing/end to end investment life cycle management
(b) Investment decisions/investment planning and decision / execution/mandated to make financial planning throughout life
(c) Both (a) + (b)
(d) Wealth manager taps the mass affluent and super affluent
Q.365. Para-banking refers to -
(a) Distribution of life/non life insurance/mutual fund schemes
(b) Corporate agents for life insurance/Non-life-insurance and mutual funds
(c) Responsibility of banks under risk factor for life/Nonlife insurance and mutual fund units
(d) Both (b) + (c)
Q.366. As a corporate agent banks distribute following types of products - insurance -
(a) Life insurer and non - life insurer one each
(b) Life insurer one and non - life insurer two
(c) Any number of life insurer and non-life insurer
(d) None of above
Q.367. The number of mutual funds that a bank can distribute as a corporate a gent-
(a) One
(b) Two
(c) Five
(d) No limit
Q.368. Cross selling refers to .
(a) Selling additional products/services to existing customer
(b) Selling additional products/services to new customer
(c) Both (a) + (b)
(d) Selling bank products in exchange of other products
Q.369. Demat refers to-
(a) Converting physical shares in to electric form
(b) Physical shares after concession become fungible assets after demat have interchangeable identical
(c) Rematerialisation converts shares into demat
(d) Both (a) + (b)
ANSWER-
346 D 347 A 348 D
349 D 350 D 351 B
352 A 353 D 354 D
355 D
356 D 357 B 358 D
359 D 360 D 361 C
362 A 367 D 368 A
369 B
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