Retail Banking – Role Within The Bank Operations Quiz

JAIIB Paper IV Retail Banking Module A chapter 2 Retail Banking Role within the Bank Operations

Retail Banking – Role within the Bank Operations
(Paper IV – Retail Banking & Wealth Management | Module A)

Test your understanding of key concepts from Retail Banking – Role within the Bank Operations with this chapter-wise quiz designed for JAIIB aspirants.

Practice these 20 multiple-choice questions to assess your preparation and reinforce your learning.
✅ Correct answers are provided below each question for easy revision.

Stay sharp. Stay exam-ready.
📚 Visit bankingshiksha.com for daily quizzes, current affairs PDFs, and complete study material.

1 / 20

What is the primary role of retail banking in deposit mobilization?

Issuing government bonds

Accepting deposits from large corporates

Accepting deposits from the public through various accounts

Managing foreign reserves

2 / 20

CASA stands for:

Credit Account and Savings Account

Current Account and Service Agreement

Current Account and Savings Account

Consolidated Assets and Savings Allocation

3 / 20

Why are CASA deposits important to banks?

They are high-risk investments

They represent long-term borrowings

They provide high-cost funding

They are low-cost funds and improve profitability

4 / 20

Retail banking is a significant contributor to a bank’s interest income primarily through:

Corporate bonds

Government securities

Retail loan portfolio

Interbank lending

5 / 20

Which of the following is NOT a source of fee-based income in retail banking?

NEFT and RTGS charges

Loan processing fees

ATM service charges

Repo rate interest

6 / 20

Cross-selling in retail banking refers to:

Selling the bank's shares to the public

Offering multiple banking products to the same customer

Selling banking services to other banks

Disposing of non-performing assets

7 / 20

What is the key advantage of risk diversification in retail banking?

It spreads risk across many small loans

It eliminates the need for provisioning

It limits the number of borrowers

It increases loan ticket size

8 / 20

During economic downturns, retail loans are generally more stable than corporate loans because:

Retail borrowers do not default

Retail customers receive government bailouts

Defaults are uniformly spread

Individual defaults are less correlated than corporate defaults

9 / 20

A visible retail banking presence helps in:

Minimizing operational costs

Building brand recognition and customer trust

Increasing the repo rate

Promoting customer confusion

10 / 20

10.

Retail banks implement RBI’s monetary policy by:

Modifying their lending and deposit rates

Printing money

Changing foreign exchange reserves

Adjusting export tariffs

11 / 20

11.

In the SBU approach, retail banking functions as:

A government-regulated entity

A distinct profit and loss center with dedicated management

An informal customer group

A non-performing asset recovery team

12 / 20

12.

Which of the following is not a characteristic of the SBU model?

High degree of autonomy

Fragmented customer view

Dedicated management team

Specialization in retail services

13 / 20

13.

One key disadvantage of the Departmental Approach is:

Improved speed in service delivery

Seamless customer experience

Fragmented customer view and missed cross-selling opportunities

High levels of specialization

14 / 20

14.

Which retail banking model combines features of both SBU and Departmental Approaches?

Centralized Lending Model

Wholesale Banking Model

Outsourced Retail Model

Integrated Approach

15 / 20

15.

What is a key feature of the Integrated Approach?

It operates only through physical branches

Uses separate systems for each product

Provides a 360-degree view of the customer

Avoids technology to reduce costs

16 / 20

16.

Which of the following best describes the Target Market Approach?

Customized banking for specific customer groups

Retail services for all segments

Focus on large-scale industrial lending

Exclusive focus on government customers

17 / 20

17.

An example of the Target Market Approach is:

Offering standard home loans to everyone

Providing customized services to NRIs and doctors

Setting uniform rates for all loans

Operating without profit objectives

18 / 20

18.

Which model is most prevalent among modern, customer-centric banks?

Departmental

SBU

Centralized Treasury

Integrated

19 / 20

19.

The Strategic Business Unit model is primarily adopted by:

NBFCs and fintechs

Co-operative societies

Regional Rural Banks only

Public and private sector banks with large retail operations

20 / 20

20.

Which business model is likely to result in slower decision-making due to inter-departmental coordination?

SBU

Integrated

Target Market

Departmental

Your score is

The average score is 50%

Exit

What is the primary role of retail banking in deposit mobilization?

CASA stands for:

Why are CASA deposits important to banks?

Retail banking is a significant contributor to a bank’s interest income primarily through:

Which of the following is NOT a source of fee-based income in retail banking?

Cross-selling in retail banking refers to:

What is the key advantage of risk diversification in retail banking?

During economic downturns, retail loans are generally more stable than corporate loans because:

A visible retail banking presence helps in:

Retail banks implement RBI’s monetary policy by:

In the SBU approach, retail banking functions as:

Which of the following is not a characteristic of the SBU model?

One key disadvantage of the Departmental Approach is:

Which retail banking model combines features of both SBU and Departmental Approaches?

What is a key feature of the Integrated Approach?

Which of the following best describes the Target Market Approach?

An example of the Target Market Approach is:

Which model is most prevalent among modern, customer-centric banks?

The Strategic Business Unit model is primarily adopted by:

Which business model is likely to result in slower decision-making due to inter-departmental coordination?

Quick Links

Study Material

Follow us on

What is the primary role of retail banking in deposit mobilization?

CASA stands for:

Why are CASA deposits important to banks?

Retail banking is a significant contributor to a bank’s interest income primarily through:

Which of the following is NOT a source of fee-based income in retail banking?

Cross-selling in retail banking refers to:

What is the key advantage of risk diversification in retail banking?

During economic downturns, retail loans are generally more stable than corporate loans because:

A visible retail banking presence helps in:

Retail banks implement RBI’s monetary policy by:

In the SBU approach, retail banking functions as:

Which of the following is not a characteristic of the SBU model?

One key disadvantage of the Departmental Approach is:

Which retail banking model combines features of both SBU and Departmental Approaches?

What is a key feature of the Integrated Approach?

Which of the following best describes the Target Market Approach?

An example of the Target Market Approach is:

Which model is most prevalent among modern, customer-centric banks?

The Strategic Business Unit model is primarily adopted by:

Which business model is likely to result in slower decision-making due to inter-departmental coordination?

Related Posts

Quick Links

Study Material

Follow us on