1. What is the primary focus of retail banking?

A) Small and medium-sized businesses B)

Wholesale markets C) Consumer markets D) Large corporate clients Answer: C) Consumer
markets
2. Which of the following is NOT a delivery channel for retail banking services? A) Branches B)
ATMs C) Internet Banking D) Stock Trading Answer: D) Stock Trading
3. What is the main advantage of retail banking in terms of credit risk? A) High volatility B)
Well-diversified credit risk C) Large loan amounts D) Low delinquencies Answer: B) Well-
diversified credit risk
4. According to the text, what is a disadvantage of retail banking? A) Low customer loyalty B)
Small client base C) High cost of servicing D) Limited potential for cross-selling Answer: C)
High cost of servicing
5. What is the primary reason for the stable business model of retail banking? A) Low income
B) Large client base C) High delinquencies D) Volatile demand Answer: B) Large client base
6. Which term is sometimes used interchangeably with "retail banking"? A) Wholesale banking
B) Investment banking C) Consumer banking D) Corporate banking Answer: C) Consumer
banking
7. What organization has studied the global retail banking market through the World Retail
Banking Report (WRBR)? A) Capgemini B) World Bank C) IMF D) Federal Reserve Answer: A)
Capgemini
8. Which type of loan is mentioned as having higher delinquencies in retail banking? A)
Mortgage loans B) Auto loans C) Personal loans D) Business loans Answer: C) Personal loans
9. What is a potential advantage of retail banking in terms of income? A) Narrow interest
spreads B) Small client base C) Low customer loyalty D) Wide interest spreads Answer: D)
Wide interest spreads
10. According to the text, what is a key disadvantage of retail banking in terms of clientele? A)
Limited potential for cross-selling B) Small client base C) High income D) High monitoring and
tracking efforts Answer: D) High monitoring and tracking efforts
11. What is the primary characteristic of retail banking? A) Focus on large corporate clients B)
Delivery of services to individual customers C) Emphasis on wholesale markets D) Limited
use of remote channels Answer: B) Delivery of services to individual customers
12. Which of the following is NOT mentioned as a remote channel for retail banking? A)
Branches B) ATMs C) Internet Banking D) Mobile Banking Answer: A) Branches
13. What distinguishes retail banking from wholesale banking? A) Focus on consumer markets B)
Use of physical branches only C) Large loan amounts D) Low customer base Answer: A) Focus
on consumer markets
14. According to the text, what is a characteristic of pure retail banking? A) Focus on small and
medium-sized businesses B) Provision of services to private individuals C) Emphasis on large
corporate clients D) Limited use of remote channels Answer: B) Provision of services to
private individuals
15. What is a potential advantage of retail banking in terms of credit risk? A) High delinquencies
B) Well-diversified credit risk C) Narrow interest spreads D) Volatility in demand Answer: B)
Well-diversified credit risk
16. What is a potential disadvantage of retail banking in terms of clientele? A) Small client base
B) Low income C) Limited potential for cross-selling D) High monitoring and tracking efforts
Answer: D) High monitoring and tracking efforts
17. Which organization has studied the global Retail Banking market through the World Retail
Banking Report (WRBR)? A) IMF B) Federal Reserve C) Capgemini D) World Bank Answer: C)
Capgemini
18. What is a significant trend in retail banking influenced by the COVID-19 pandemic? A)
Decline of digital banking B) Reduced focus on cyber security C) Slow adoption of blockchain
D) Blooming of digital banking Answer: D) Blooming of digital banking
19. Which technology is rapidly being adapted by retail bankers according to the text? A)
Artificial Intelligence B) Virtual Reality C) Blockchain D) Machine Learning Answer: C)
Blockchain
20. What is a key trend in retail banking related to data science? A) Decline in the use of data
analytics B) Reduced focus on artificial intelligence C) Rise of big tech in banking D) Rapid
adaptation of machine learning Answer: C) Rise of big tech in banking
21. What is the primary characteristic of retail banking? A) Focus on large corporate clients B)
Delivery of services to individual customers C) Emphasis on wholesale markets D) Limited
use of remote channels Answer: B) Delivery of services to individual customers
22. 2. Which of the following is NOT mentioned as a remote channel for retail banking? A)
Branches B) ATMs C) Internet Banking D) Mobile Banking Answer: A) Branches
23. What distinguishes retail banking from wholesale banking? A) Focus on consumer markets B)
Use of physical branches only C) Large loan amounts D) Low customer base Answer: A) Focus
on consumer markets
24. According to the text, what is a characteristic of pure retail banking? A) Focus on small and
medium-sized businesses B) Provision of services to private individuals C) Emphasis on large
corporate clients D) Limited use of remote channels Answer: B) Provision of services to
private individuals
25. What is a potential advantage of retail banking in terms of credit risk? A) High delinquencies
B) Well-diversified credit risk C) Narrow interest spreads D) Volatility in demand Answer: B)
Well-diversified credit risk
26. What is a potential disadvantage of retail banking in terms of clientele? A) Small client base
B) Low income C) Limited potential for cross-selling D) High monitoring and tracking efforts
Answer: D) High monitoring and tracking efforts
27. Which organization has studied the global Retail Banking market through the World Retail
Banking Report (WRBR)? A) IMF B) Federal Reserve C) Capgemini D) World Bank Answer: C)
Capgemini
28. What is a significant trend in retail banking influenced by the COVID-19 pandemic? A)
Decline of digital banking B) Reduced focus on cyber security C) Slow adoption of blockchain
D) Blooming of digital banking Answer: D) Blooming of digital banking
29. Which technology is rapidly being adapted by retail bankers according to the text? A)
Artificial Intelligence B) Virtual Reality C) Blockchain D) Machine Learning Answer: C)
Blockchain
30. What is a key trend in retail banking related to data science? A) Decline in the use of data
analytics B) Reduced focus on artificial intelligence C) Rise of big tech in banking D) Rapid
adaptation of machine learning Answer: C) Rise of big tech in bankingHow does the impact
of Non-Performing Assets (NPA) differ between retail banking and corporate banking? A)
Retail banking has higher NPA impact B) Corporate banking has higher NPA impact C) Both
have equal NPA impact D) NPA does not impact either banking sector Answer: B) Corporate
banking has higher NPA impact
31. What is the role of commercial banks in the economy? A) To regulate the stock market B) To
act as a bridge between depositors and borrowers C) To control inflation rates D) To manage
government bonds Answer: B) To act as a bridge between depositors and borrowers
32. How did India open its economy in the nineties? A) By increasing import tariffs B) By
implementing stricter regulations C) By ending the Licence Raj and permit system D) By
nationalizing all banks Answer: C) By ending the Licence Raj and permit system
33. What is the current composition of the Indian banking system? A) 12 Public Sector Banks, 21
Private Sector Banks, 45 Foreign Banks B) 10 Public Sector Banks, 25 Private Sector Banks, 40
Foreign Banks C) 15 Public Sector Banks, 20 Private Sector Banks, 50 Foreign Banks D) 20
Public Sector Banks, 15 Private Sector Banks, 55 Foreign Banks Answer: A) 12 Public Sector
Banks, 21 Private Sector Banks, 45 Foreign Banks
34. How does profitability differ from profit in banking? A) Profit is absolute, while profitability is
relative B) Profitability is absolute, while profit is relative C) Profit is a measure of efficiency,
while profitability is an absolute amount D) Profitability is a measurement of efficiency,
while profit is an absolute amount Answer: D) Profitability is a measurement of efficiency,
while profit is an absolute amount
35. What is a key determinant for pricing structuring in retail banking? A) Customer feedback B)
Market trends C) Quantum and volumes D) Regulatory requirements Answer: C) Quantum
and volumes
36. How do banks earn larger returns on equity? A) By reducing leverage B) By increasing
interest rates C) By using leverage D) By reducing fees Answer: C) By using leverage
37. What are some strategies to enhance branch profitability? A) Focus on balancing profit,
growth and risk B) Assessing strategic fit for each branch C) Execution of effective marketing
campaigns D) All of the above Answer: D) All of the above
38. How can customer requirements be segmented based on income levels? A) Mass Market,
Mass Affluent, Super Affluent, HNW, Super HNW, Ultra HNW B) High Income, Medium
Income, Low Income C) Upper Class, Middle Class, Lower Class D) None of the above
Answer: A) Mass Market, Mass Affluent, Super Affluent, HNW, Super HNW, Ultra HNW
39. According to Maslow's Theory, which customer segment would require products related to
personal accident cover and housing loans? A) Physiological Needs B) Security/Safety Needs
C) Social Needs D) Esteem Needs Answer: B) Security/Safety Needs
40. What factors influence customer expectations regarding service quality in banking? A)
Tangibility, Reliability, Responsiveness, Assurance, Empathy B) Price, Product, Place,
Promotion C) Profitability, Efficiency, Growth D) None of the above Answer: A) Tangibility,
Reliability, Responsiveness, Assurance, Empathy
41. What is a product in the context of retail banking? A) Anything that satisfies customer needs
B) Anything that generates revenue for the organization C) Anything that provides
satisfaction, use, and return desired by the customer D) Anything that is offered by a bank
Answer: C) Anything that provides satisfaction, use, and return desired by the customer
42. In which stage of the product life cycle does the sales volume peak? A) Introduction stage B)
Growth stage C) Maturity stage D) Decline stage Answer: C) Maturity stage
43. What are augmented products in retail banking? A) Products with additional features B)
Products that are developed from formal products C) Products that combine two core
products D) Products that add value to the customer Answer: A) Products with additional
features
44. How are products classified in retail banking? A) By risk levels B) By customer satisfaction C)
By product life cycle D) By deposit and asset products Answer: D) By deposit and asset
products
45. What is a credit score? A) A measure of a person's credit discipline B) A statistical analysis of
a person's current credit needs C) A measure of a person's past credit defaults D) A measure
of a person's income levels Answer: A) A measure of a person's credit discipline
46. What range do credit scores typically fall into according to the Cibil-TransUnion model? A)
100 to 500 B) 300 to 900 C) 500 to 1000 D) 700 to 1200 Answer: B) 300 to 900
47. What factors can lead to a favorable credit score? A) Regular payment of credit card bills B)
Too many credit report enquiries C) Defaulting on credit card bills D) Multiple applications
for unsecured loans Answer: A) Regular payment of credit card bills
48. What is one of the advantages of maintaining a high credit score? A) Difficulty in obtaining
loans B) Higher interest rates C) Quick processing of loan applications D) Inability to
negotiate with financial institutions Answer: C) Quick processing of loan applications
49. What is a common mistake that can affect credit scores? A) Consistent repayment of loans
B) Too many credit inquiries C) Regular payment of utility bills D) Error-free records by banks
Answer: B) Too many credit inquiries
50. What is the significance of maintaining a high credit score? A) Difficulty in obtaining credit B)
Lower interest rates C) Longer processing times for loan applications D) Inability to negotiate
with financial institutions Answer: B) Lower interest rates
51. What is the primary function of banks in retail banking? A) Accepting deposits B)
Mobilization of deposits C) Lending to enterprise class D) Intermediation Answer: D)
Intermediation
52. What is the main feature of a current deposit account? A) It is interest-bearing B) It requires
a low minimum balance C) It is meant for individuals D) It allows unlimited transactions
Answer: D) It allows unlimited transactions
53. Which account is vital for banks as it is almost a no-cost deposit? A) Savings Account B) Fixed
Deposit Account C) Current Deposit Account D) Recurring Deposit Account Answer: C)
Current Deposit Account
54. What is the minimum age requirement for opening a savings bank account in the sole name
of a minor? A) 5 years B) 10 years C) 14 years D) 18 years Answer: B) 10 years
55. What does RBI prohibit banks from doing regarding savings bank accounts? A) Opening
accounts for minors B) Opening accounts for illiterate individuals C) Opening accounts for
business entities D) Opening accounts for senior citizens Answer: C) Opening accounts for
business entities
56. What is the maximum balance allowed in a savings bank account for minors of 14 years and
above? A) 50,000/- B) 1,00,000/- C) No limit D) 5,00,000/- Answer: C) No limit
57. Which account does not promote saving habits among account holders? A) Fixed Deposit
Account B) Savings Account C) Current Deposit Account D) Recurring Deposit Account
Answer: C) Current Deposit Account
58. What is the main objective of a current bank account? A) To earn high-interest rates B) To
enable smooth business transactions C) To promote saving habits D) To restrict the number
of withdrawals Answer: B) To enable smooth business transactions
59. Which of the following is NOT a feature of a current deposit account? A) Non-interest
bearing B) Requires a higher minimum balance C) Charges interest on short-term funds D)
Continues for a fixed period Answer: D) Continues for a fixed period
60. What is the primary function of a savings bank account? A) To facilitate business
transactions B) To encourage saving habits C) To earn high-interest rates D) To provide
overdraft facilities Answer: B) To encourage saving habits
61. What is the maximum moratorium period allowed for a current account in case of
construction? A) 1 month B) 3 months C) 6 months D) 18 months Answer: D) 18 months
62. What is the maximum moratorium period allowed for a savings bank account in case of
purchase? A) 1 month B) 3 months C) 6 months D) 18 months Answer: B) 3 months
63. What is the security required for educational loans above 7.5 lakhs? A) Collateral security B)
Third-party guarantee C) No security required D) Parent(s) to be joint borrower(s) Answer:
A) Collateral security
64. What is the maximum amount for studies in India under the educational loan scheme? A) 5
lakhs B) 7.5 lakhs C) 10 lakhs D) No limit Answer: C) 10 lakhs
65. What is the maximum repayment period for an educational loan? A) 5 years B) 7 years C) 10
years D) 15 years Answer: C) 10 years
66. What is the model involving the manufacturer, dealer, and the financier called in
auto/vehicle loans? A) Centralized model B) Standalone model C) Hypothecation model D)
Collateral model Answer: C) Hypothecation model
67. What type of loan is backed by personal guarantees only? A) Auto Loan B) Personal Loan C)
Home Loan D) Educational Loan Answer: B) Personal Loan
68. What is the maximum repayment period for a personal loan? A) 5 years B) 7 years C) 10
years D) 15 years Answer: A) 5 years
69. Which account is not a negotiable instrument? A) Fixed Deposit Account B) Savings Account
C) Current Deposit Account D) Time Deposit Receipt Answer: D) Time Deposit Receipt
70. What type of deposit is a recurring deposit account? A) Fixed Deposit B) Demand Deposit C)
Time Deposit D) Savings Deposit Answer: C) Time Deposit
71. What is a credit card? A. Plastic money with unlimited credit B. Plastic money with pre-set
limits based on credit score C. Physical currency issued by banks D. Digital wallet for online
purchases Answer: B. Plastic money with pre-set limits based on credit score
72. How many parties are involved in the complete cycle of a credit card transaction? A. Three B.
Four C. Five D. Six Answer: C. Five
73. Which of the following is not a party in a credit card transaction cycle? A. The Retailer B. The
Acquiring Bank C. The Central Bank D. The Issuing Bank Answer: C. The Central Bank
74. What determines the revenue generation in credit card payments? A. Card issuance B.
Frequency of card usage up to the available limit C. Payment of credit card dues D. All of the
above Answer: D. All of the above
75. What are the two main types of credit cards issued by banks? A. Gold and Silver B. Visa and
MasterCard C. Proprietary and Co-branded D. Classic and Platinum Answer: C. Proprietary
and Co-branded
76. Which organization offers RuPay Credit cards? A. Visa B. MasterCard C. American Express D.
NPCI Answer: D. NPCI
77. What is the minimum age requirement for eligibility for a credit card? A. 16 years B. 18 years
C. 21 years D. 25 years Answer: B. 18 years
78. What is the minimum amount due for credit card payments? A. 2% of the statement
outstanding B. 5% of the statement outstanding C. 10% of the statement outstanding D. 15%
of the statement outstanding Answer: B. 5% of the statement outstanding
79. What does RTGS stand for? A. Real Time Gross Settlement B. Real Time Grand System C.
Rapid Transaction Gateway System D. Random Time Gross Settlement Answer: A. Real Time
Gross Settlement
80. What is the minimum amount for RTGS transactions? A. ₹1,00,000 B. ₹50,000 C. ₹5,00,000
D. ₹2,00,000 Answer: A. ₹1,00,000
81. What replaced ECS (Electronic Clearing Services) on May 1, 2016? A. NACH B. RTGS C. NEFT
D. UPI Answer: A. NACH
82. What does AePS stand for? A. Automated Electronic Payment System B. Aadhar Enabled
Payment System C. Advanced Encryption Payment Service D. Annual Electronic Payment
Scheme Answer: B. Aadhar Enabled Payment System
83. What service does AePS NOT offer? A. Cash Withdrawal B. Cash Deposit C. Check Deposit D.
Balance Enquiry Answer: C. Check Deposit
84. Which of the following is NOT a feature of Bharat QR? A. Low-cost infrastructure B. Remote
management of merchant and customers C. Interoperable QR code D. Cash on Delivery
payment option Answer: D. Cash on Delivery payment option
85. How many broad categories of ECS schemes are there? A. Two B. Three C. Four D. Five
Answer: B. Three
86. What does NEFT stand for? A. National Electronic Funds Transfer B. National Efficient Funds
Transfer C. Non-Effective Funds Transfer D. National Encryption Funds Transfer Answer: A.
National Electronic Funds Transfer
87. What is the maximum amount per transaction for remittances to Nepal under the Indo-
Nepal Remittance Facility Scheme? A. ₹50,000 B. ₹1,00,000 C. ₹2,00,000 D. ₹5,00,000
Answer: A. ₹50,000
88. What is the settlement period for NEFT transactions? A. T+1 B. T+2 C. T+3 D. T+4 Answer: B.
T+2
89. What is the maximum interest-free period for credit card transactions? A. 10 days B. 20 days
C. 30 days D. 50 days Answer: D. 50 days
90. What is the purpose of the minimum amount due for credit card payments? A. To encourage
more spending B. To avoid default C. To reduce the credit limit D. To increase the interest
rate Answer: B. To avoid default
91. What is the transaction limit for prepaid payment cards? A. ₹50,000 B. ₹1,00,000 C.
₹2,00,000 D. ₹5,00,000 Answer: B. ₹1,00,000
92. What is the APR for cash transactions on credit cards? A. 24% B. 29.88% C. 37.20% D. 41.88%
Answer: D. 41.88%
93. What is the primary difference between debit and credit cards? A. Debit cards have higher
interest rates B. Debit cards require a credit score C. Debit cards use account balances for
payments D. Debit cards have unlimited credit limits Answer: C. Debit cards use account
balances for payments
94. What is the role of the Clearing Network in a credit card transaction? A. To issue credit cards
B. To clear payments between banks C. To set credit limits D. To manage merchant
establishments Answer: B. To clear payments between banks
95. What is the purpose of a co-branded credit card? A. To provide extra benefits to card users
B. To issue cards with high credit limits C. To restrict card usage to specific merchants D. To
offer lower interest rates Answer: A. To provide extra benefits to card users

96. What is the role of technology in retail banking? A. It is the foundation of customer service B.
It enables building and translating customer databases into business C. It is used for
marketing products D. It is only used for internal processes Answer: B. It enables building
and translating customer databases into business
97. What are the four approaches followed by retail banks in integrating technology with retail
banking processes? A. Core, Supportive, Integrated, Hybrid B. Horizontally Organized,
Vertically Organized, Modularized, Hybrid C. Horizontally Organized, Vertically Organized,
Predominantly Horizontally Organized, Predominantly Vertically Organized D. Centralized,
Decentralized, Hybrid, Integrated Answer: C. Horizontally Organized, Vertically Organized,
Predominantly Horizontally Organized, Predominantly Vertically Organized
98. How do banks adopt technology initiatives? A. Only through in-house resources B. Only
through outsourced vendors C. Through a blend of proprietary and outsourced models D.
 They do not adopt technology initiatives Answer: C. Through a blend of proprietary and
outsourced models
99. What are the main issues in technology models? A. Scalability and Security B. Scalability and
Sustainability C. Security and Sustainability D. Security and Affordability Answer: B.
Scalability and Sustainability
100. Which organization developed IT products like INFINET, SFMS, NFS, and IBCC? A. RBI
B. IDRBT C. NPCI D. IBA Answer: B. IDRBT
101. What is the purpose of INFINET? A. Funds transfer under NEFT and RTGS B.
Structured messaging system C. Cloud computing service D. ATM network Answer: A. Funds
transfer under NEFT and RTGS
102. What is the advantage of INFINET? A. Reduced operational costs B. Faster
transaction speeds C. Increased security D. All of the above Answer: D. All of the above
103. What is SFMS used for? A. Secure messaging between banks B. Electronic Funds
Transfer C. Real-Time Gross Settlement D. All of the above Answer: A. Secure messaging
between banks
104. When was the NFS ATM network launched by IDRBT? A. 2000 B. 2004 C. 2008 D.
2012 Answer: B. 2004
105. What is the main service offered by NFS? A. Internet Banking B. Mobile Banking C.
ATM Services D. Payment Gateway Services Answer: C. ATM Services
106. What is the purpose of IBCC? A. To provide software as a service B. To provide
infrastructure as a service C. To provide platform as a service D. To provide banking services
Answer: B. To provide infrastructure as a service
107. What is the cloud computing service provided by IBCC? A. Software as a Service
(SaaS) B. Platform as a Service (PaaS) C. Infrastructure as a Service (IaaS) D. All of the above
Answer: C. Infrastructure as a Service (IaaS)
108. Which of the following is NOT a service offered by NFS? A. Cash Withdrawal B.
Balance Enquiry C. Mobile Banking Registration D. Internet Banking Answer: D. Internet
Banking
109. Which type of model offers common information for most related services? A.
Horizontally Organized Model B. Vertically Organized Model C. Predominantly Horizontally
Organized Model D. Predominantly Vertically Organized Model Answer: D. Predominantly
Vertically Organized Model
110. What is the significance of technology in retail banking? A. It is essential for
marketing new products B. It helps in reducing operational costs C. It allows banks to offer
better customer service D. All of the above Answer: D. All of the above
111. What does the term "Banking Technology" refer to? A. Use of sophisticated
information and communication technologies B. Use of computer science only C. Stand-
alone discipline D. Use of marketing science only Answer: A. Use of sophisticated
information and communication technologies
112. Which of the following is NOT a field that contributes to Banking Technology? A.
Finance B. Marketing Science C. Medicine D. Computer Science Answer: C. Medicine
113. What is the main role of information technology in banking? A. Help banks make
better decisions B. Deliver services at a higher cost C. Slow down banking operations D.
None of the above Answer: A. Help banks make better decisions
114. When was the first universal credit card introduced? A. 1950 B. 1960 C. 1970 D.
1980 Answer: A. 1950
115. What was the first major technological advancement in the financial industry after
the credit card? A. Introduction of the first ATM B. Introduction of online banking C.
 Introduction of mobile banking D. Introduction of digital tablets Answer: A. Introduction of
the first ATM
116. What technology brought a new wave of convenience in retail banking in the late
1980s? A. Online banking B. Mobile banking C. Digital tablets D. Credit cards Answer: C.
Digital tablets
117. What major shift did the early 2000s bring to the financial industry? A. Introduction
of online banking B. Adoption of wireless technology and mobile banking C. Launch of
Google Wallet D. Introduction of fingerprint authentication Answer: B. Adoption of wireless
technology and mobile banking
118. What did Bank of America introduce in 2015 to enhance mobile banking security? A.
Google Wallet B. Fingerprint authentication and Touch ID C. Samsung digital tablet D.
INFINET Answer: B. Fingerprint authentication and Touch ID
119. What is one of the challenges towards the adoption of technology in banking in
India? A. Lack of skilled workforce B. Excessive use of paper C. High cost of technology D.
Limited customer base Answer: A. Lack of skilled workforce
120. What is the role of AI in the banking industry? A. To increase paper usage B. To
reduce operational efficiency C. To enhance customer service and operational efficiency D.
To limit customer access Answer: C. To enhance customer service and operational efficiency
121. What is the purpose of AI in banking? A. To make machines act and think like
humans B. To replace human employees C. To increase operational costs D. To reduce
customer service quality Answer: A. To make machines act and think like humans
122. What is one of the benefits of AI technology in banking? A. Increased operational
costs B. Reduced customer satisfaction C. Enhanced productivity and efficiency D. Limited
access to banking services Answer: C. Enhanced productivity and efficiency
123. How does AI technology benefit personalized financial services? A. By limiting
customer choices B. By providing tailored financial solutions C. By increasing operational
costs D. By reducing customer service quality Answer: B. By providing tailored financial
solutions
124. Which technology is NOT associated with AI in banking? A. Smart Wallets B.
Blockchain C. Virtual Reality D. Underwriting Answer: C. Virtual Reality
125. What role does AI play in decision-making in banking? A. It replaces human decision-
making B. It supports effective decision-making by providing valuable insights C. It increases
operational costs D. It limits access to banking services Answer: B. It supports effective
decision-making by providing valuable insights
126. What is a moratorium period in retail loans? A. A period when borrowers must make
principal repayments B. A period when borrowers are not required to make any principal
repayment C. A period when borrowers must make interest payments only D. A period when
borrowers can increase their loan amount Answer: B. A period when borrowers are not
required to make any principal repayment
127. What is the payment method in a bullet payment? A. Equal monthly installments B.
Lump sum payment at the end of the loan period C. Weekly payments D. Increasing
payments over time Answer: B. Lump sum payment at the end of the loan period
128. How are recoveries effected in retail loans? A. Through bullet payments only B.
Through fixed installment loans only C. Through Equated Monthly Installments (EMIs) or
simply EMIs D. Through increasing installment payments Answer: C. Through Equated
Monthly Installments (EMIs) or simply EMIs
129. What is one of the most important elements of retail banking that decides its
success? A. Loan approval process B. Interest rate calculations C. Recovery D. Loan
origination Answer: C. Recovery
130. What is the difference between genuine defaults and wilful defaults? A. Genuine
defaults are intentional, while wilful defaults are unintentional. B. Genuine defaults are due
to personal setbacks, while wilful defaults involve diversion of funds. C. Genuine defaults
involve small amounts, while wilful defaults involve large amounts. D. Genuine defaults are
common, while wilful defaults are rare. Answer: B. Genuine defaults are due to personal
setbacks, while wilful defaults involve diversion of funds.
131. What is the main objective of credit monitoring process in retail banking? A. To
increase the loan amount B. To maintain the quality of retail assets C. To reduce the interest
rates D. To avoid loan defaults Answer: B. To maintain the quality of retail assets
132. When does a retail asset become non-performing? A. When it generates income for
the bank B. When it ceases to generate income for the bank C. When it is sold to another
bank D. When it is fully paid off Answer: B. When it ceases to generate income for the bank
133. What is the criteria for an asset to be classified as substandard? A. It has remained
NPA for a period less than or equal to 6 months. B. It has remained NPA for a period less
than or equal to 12 months. C. It has remained NPA for a period less than or equal to 18
months. D. It has remained NPA for a period less than or equal to 24 months. Answer: B. It
has remained NPA for a period less than or equal to 12 months.
134. What is the criteria for an asset to be classified as doubtful? A. It has remained NPA
for more than 6 months. B. It has remained NPA for more than 12 months. C. It has
remained NPA for more than 18 months. D. It has remained NPA for more than 24 months.
Answer: B. It has remained NPA for more than 12 months.
135. What is the main objective of the SARFAESI Act? A. To allow banks and FIs to take
possession of securities and sell them B. To increase interest rates C. To reduce loan
amounts D. To encourage borrowers to default on loans Answer: A. To allow banks and FIs
to take possession of securities and sell them
136. What is the purpose of the Debt Recovery Tribunals (DRTs)? A. To provide loans to
borrowers B. To recover dues of financial institutions C. To increase interest rates D. To
reduce loan amounts Answer: B. To recover dues of financial institutions
137. What is the role of Recovery Agents in retail banking? A. To increase loan amounts
B. To recover loans from delinquent borrowers C. To provide loans to borrowers D. To
reduce interest rates Answer: B. To recover loans from delinquent borrowers
138. What is the purpose of the Recovery Policy in retail banking? A. To increase loan
amounts B. To reduce interest rates C. To maintain the quality of retail assets D. To provide
loans to borrowers Answer: C. To maintain the quality of retail assets
139. How does the Debt Recovery Tribunal (DRT) handle recovery of dues? A. By
increasing interest rates B. By appointing receivers and commissioners C. By reducing loan
amounts D. By providing loans to borrowers Answer: B. By appointing receivers and
commissioners
140. What is the purpose of the Lok Adalats in recovery of loans? A. To increase interest
rates B. To reduce loan amounts C. To recover NPAs through a simple and fast process D. To
provide loans to borrowers Answer: C. To recover NPAs through a simple and fast process
141. What is the minimum training requirement for Recovery Agents as per RBI? A. 50
hours B. 75 hours C. 100 hours D. 150 hours Answer: C. 100 hours
142. What is the purpose of the Recovery Agents certification course? A. To increase loan
amounts B. To reduce interest rates C. To ensure professionalism in recovery process D. To
provide loans to borrowers Answer: C. To ensure professionalism in recovery process
143. What is the main feature of the recovery process in banks? A. Dignity and respect to
customers B. Intimidation and harassment of customers C. Increase in loan amounts D.
Reduction in interest rates Answer: A. Dignity and respect to customers
144. What is the role of the Debt Recovery Tribunals (DRTs) in the recovery process? A.
To increase loan amounts B. To recover dues of financial institutions C. To reduce interest
rates D. To provide loans to borrowers Answer: B. To recover dues of financial institutions
145. What is the purpose of the Debt Recovery Tribunals (DRTs)? A. To provide loans to
borrowers B. To recover dues of financial institutions C. To increase interest rates D. To
reduce loan amounts Answer: B. To recover dues of financial institutions
146. What is the role of the Recovery Agents in retail banking? A. To increase loan
amounts B. To recover loans from delinquent borrowers C. To reduce interest rates D. To
provide loans to borrowers Answer: B. To recover loans from delinquent borrowers
147. What is the purpose of the Recovery Policy in retail banking? A. To increase loan
amounts B. To reduce interest rates C. To maintain the quality of retail assets D. To provide
loans to borrowers Answer: C. To maintain the quality of retail assets
148. How does the Debt Recovery Tribunal (DRT) handle recovery of dues? A. By
increasing interest rates B. By appointing receivers and commissioners C. By reducing loan
amounts D. By providing loans to borrowers Answer: B. By appointing receivers and
commissioners
149. What is the purpose of the Lok Adalats in recovery of loans? A. To increase interest
rates B. To reduce loan amounts C. To recover NPAs through a simple and fast process D. To
provide loans to borrowers Answer: C. To recover NPAs through a simple and fast process
150. What is th
151. What does MIS stand for? A) Marketing Information System B) Management
Information System C) Manufacturing Information System D) Market Information System
Answer: B) Management Information System
152. What are the main elements of MIS? A) Integrated system, computer system, user-
machine interface B) Database, user-machine interface, management level presentation C)
Service to many users, database, user-machine interface D) Service to many users, computer
system, management level presentation Answer: C) Service to many users, database, user-
machine interface
153. What are the two main roles of MIS in decision making by managers? A) Providing
information and making decisions B) Helping managers take decisions and supporting
different types of decisions C) Analyzing data and presenting information D) Designing
systems and managing operations Answer: B) Helping managers take decisions and
supporting different types of decisions
154. What are the major drawbacks and reasons for failure in using MIS in public
organizations? A) Lack of procedures and methodology, unsuitable implementation B) Lack
of understanding of user needs, lack of suitable consultants C) Lack of participation of
managers, lack of accurate data D) Lack of education of users, inadequate documentation
Answer: B) Lack of understanding of user needs, lack of suitable consultants
155. What is the single most widely used measure of quick service in banking? A)
Customer satisfaction B) Number of transactions C) Elapsed time of transaction execution D)
Staff efficiency Answer: C) Elapsed time of transaction execution
156. What factors should be considered while designing an MIS for banks? A) Goals and
objectives, technological development B) Customer segmentation, quality of staff C) Goals
and objectives, quality of staff D) Technological development, customer segmentation
Answer: A) Goals and objectives, technological development
157. How can the factors affecting existing issues related to MIS be broadly divided? A)
Into humanistic, environmental, and organizational factors B) Into technological,
organizational, and environmental factors C) Into human resources, organizational structure,
and environmental factors D) Into user needs, system design, and environmental factors
Answer: A) Into humanistic, environmental, and organizational factors
158. What differs from organization to organization and affects the MIS related issues? A)
Technological development B) Customer segmentation C) Goals and objectives D) Quality of
staff Answer: C) Goals and objectives
159. What is the unique service in banking mostly about? A) Solving customers' financial
problems B) Providing financial advice C) Speed of transaction execution D) Customer
satisfaction Answer: C) Speed of transaction execution
160. What is the basic nature of MIS related issues in organizations? A) They are similar
for every organization B) They differ for each organization C) They are difficult to analyze D)
They are based on market trends Answer: B) They differ for each organization
161. e minimum training requirement for Recovery Agents as per RBI? A. 50 hours B. 75
hours C. 100 hours D. 150 hours Answer: C. 100 hours