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)

(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)15%(c)33%(d)24%(e)3%
Q.10. What is not a constraint in Retail Banking?

a. Managing large number of clients in absence of ROBUST IT system

b. Rapid evolution of services

c. Maintaining ATMs centres with low costs

d. Unsecured retail loans and credit and receivables amount

Q.11. What is business model for retail banking in India?

a. Strategic business unit approach

b. Departmental Approach

c. Integrated approach

d. Any one of above

e. Both (a) and (b) only

Q.12. Give the names of foreign banks which entered the retail banking activities butwhen notableto
achieve the business objectives moved out of business?

a. BNP Paribas

b. American Express

c. ABN Amro (Now RSB) bank

d. Citi Bank

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. Integrated Approach

d. Management by Objective Approach

a) Strategic business unit approach

b) Departmental Approach

c) Integrated approach (part of overall business plan)

(d) Management by 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 deposit accounts

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) Internet banking/phone banking/mobile banking tagging group insurance products to life and non-
life/money sweep facilities from savings to fixed

deposits.

c) Both (a) and (b)

d) Auto overdraft facility only

a. Housing Loans/Loan against rental receivables

b. Consumer durable loans /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) Housing loan/consumer durables loan/auto loans/personal loan/ credit card receivables

b) Saving/term/current deposits

c) Debit Cards/ATM cards/telephone banking/mobile banking

d) Internet banking/demat services/brooking services/insurance policies/mutual funds/sale of gold

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. AU above

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 products and 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) Bundled pricing/Holistic pricing based on total relationship (d) All above (e) Any of above
Q.27. Why structuring is adopted by banks in retail banking?

Offer holistic pricing across of specific bundling of services so the total price proposition becomes
attractive customer

Offer holistic pricing across of specific bundling of services so the total price proposition becomes
profitable to bank

Offer holistic pricing across of specific bundling of services so the total price proposition becomes
attractive to high net worth clients only 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. Public sector banks (nationalised + IDBI bank + SBI and 5 associates and Bhartiya Mahilla Bank Ltd.)
have price concerns as well as rebates in

pricing structure. What is the basis of its application?

a) Volumes of transaction

b) Quantum

c) Relationship with bank d) All above

30. Banks do have structure for pricing additional models. Under it what are benefits made available to
customers other than rebates of discounts as

alternative pricing propositions?

(a) Free remittance facilities

(b) Issue of demand drafts free of charges

(c) Waiver of service or processing charges (d) All above e) Any of above
Q.31. Technology and retail banking are inseparable. Technology is the enabler for building and
translating a customer data base into retail banking business. Such data are

usable to

a. Increase the scope for cross selling

b. Increase the scope for up-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. Individuals segment/mass market/business to customer approach

b. Wholesale clients/smaller segment/business to business approach

c. High ticket size/high risk/low returns/monitoring less laborious

high deposit cost

(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. To which type of banking we get higher returns/lesser risk/cheaper cost of deposits/impact of NPA
lesser/Low ticket size of loan etc.?

a. Retail Banking

b. Wholesale Banking

c. B2B Banking
(d) Corporate Banking

Q.35. What is the latest level of technology in Public Sector Banks?

ALPM

a) Single Server environment

b) Core banking solution, C) single platform environment (d) Truncation

Q.36. Which implementation model banks adopt in retail banking processes?

a. Horizontally organised model

b. Vertically organised model

c. Predominantly vertically organised model

d. Predominantly Horizontally organised model

e. Anyone of above

Q.37. When is the horizontal model adopted in retail banking?

a. Level of customer information available in a single platform

b. Offering multiple products/services

c. Offering services across assets, liabilities and other services

d. All of above

Q.38. When the vertically organised model provides functionality under retail banking?

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 organised model

b. Vertically organised model

c. Predominantly vertically organised model

d. Predominantly horizontally organised model

a) Retail Assets

b) Retail Liability ,c )Third Party Products, d) All above

ANSWER

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