GENERAL BANK MANAGEMENT (CAIIB)

TEST 02

CTDI

1) Correspondent banking relationship:

a) Account with each other is a must.
b) Can include forex services, trade references and LC
related business also
c) Need not comply to KYC / AML guidelines.
d) Does not allow use of branch network of the
correspondent bank.
2) Foreign Exchange markets are:
a) Regional markets
b) Domestic markets
c) Global markets
d) Localized exchange traded markets
3) Exchange Fluctuation Risk of ECGC:
a) Covers all exports payments upto six months period
b) Covers 100% exchange fluctuation of Indian exporters
c) Covers exchange fluctuation above 2% and upto 50% only
d) Covers exchange fluctuation above 2% & upto 35% only
4) Mr. Vipin wants to pay Rs 400,000 in cash to purchase
TC/Currency for private visit abroad? He wants to know
is the ceiling for payment in Rupees by cash, for
purchase of foreign exchange for any purpose.
a) Rs. 1 lac b) Rs. 5 lac c) USD 2000
d) Rs. 50,000
5) SWIFT is ______:
a) A mode of financing exporters swiftly
b) A mode of clearing house payment of cheques received
c) A telecommunication system globally used for
authenticated messaging
d) A mode of Telecommunication within the EURO ZONE
6) Forward contracts are the most common form of
Derivatives in India. They are:
a) Exchange traded contracts
b) Standardized contracts in fixed amounts and tenor
c) OTC derivatives with no standard for amounts and tenor
d) Not binding on the buyer
7) Mr.Amrit is your valued customer. He wants to know
the ceiling for availing foreign currency when travelling
abroad for business visits, irrespective of the number of
days. He does not have EEFC or RFC(D) or RFC
accounts.
a) USD 500 per day
b) USD 10,000 in all
c) USD 25,000
d) USD 100,000
8)____ is a NRI as per FEMA.
a) An Indian who proceeds abroad for definite stay with
relatives on a holiday
b) A resident Indian who is a citizen of Bangladesh and has
an Indian passport.
c) An Indian citizen working abroad on assignments with
foreign government, UNO or IMF
d) An Indian who is employed in India, but his son is working
abroad.
9) Mandatory features of a Letter of Credit:
a) Must have an applicant and a beneficiary
b) Should have an advising bank and a confirming bank
c) Should be confirmed to be operative
d) Must be confirmed by the reimbursing bank
10) Veena Jayaram has Rs 4.5 crores in her SB account.
She is proceeding to Switzerland for a holiday. What is
the ceiling for availing foreign currency for such a
private visit abroad?
a) Rs. 1 lac
b) USD 1 lac
c) USD 10,000
d) USD 1 million
11) _____ does not closely relate to Emotional
Intelligence.
a) Empathy
b) Self Awareness
CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH

c) Self Regulation
d) Self Esteem
12) Quote Bill selling rate for import bill under LC, if
interbank market is 44.67/ 69 and a margin of 0.20% is to
be loaded in the rate (rounded to 0025 paise).
a) 44,7800
b) 44,6000
c) 44,7600
d) 44,6900
13) Eric Berne has propounded the concept of ______
which operates at inter-personal level.
a) Locus of Control
b) Transactional Analysis
c) Need Satisfaction
d) None of these
14) Quote TT buying forward rate for delivery full Oct.
2006, if spot USD / INR is 44.30/32 and premiums are,
Spot Sept. 0450/065, Spot Oct., 06/08 and Spot Nov. 07/10
(ignore margins):
a) 44.36 b) 44.3850
c) 44.39
d) 44.3450
15) Working hours of workers are regulated by:
a) Industrial Disputes Act 1947
b) Factories Act 1948
c) Workmen Compensation Act 1923 d) None of the above
16) Knowledge Management most closely refers to:
a) Creating knowledge workers in the organisation
b) Sharing the knowledge through quality circles
c) Capturing tacit working of people for future use
d) Providing information to management for decision making
17) _____ is not a part of Job Analysis.
a) Job Enrichment
b) Job Description
c) Job Specification
d) Job Evaluation
18) Mr.Dev is a type A personality. He _____:
a) Does several things at a time
b) Has control over time
c) Appears to take things easy
d) None of these
19) What will be TT selling rate for GBP / INR, if USD /
INR is 44.25/27 and GBP/ USD is 1.7828/ 38, and a
margin of 0.15% is to be charged?
a) 78.9700
b) 79.0900
c) 78.7700
d) 79.0000
20) A spot FX deal is done on Wednesday 25-1-2006.
Which will be the date of delivery, considering that all
days of the month are working days, except Thursday
26-1-2006, which is a national holiday on account of
Republic Day?
a) 27-1-2006 b) 28-1-2006 c) 30-1-2006 d) 31-1-2006
21) Mr.Armani is a Lottery afficiando.He wants to buy
lottery ticket abroad for USD1000.What is the ceiling for
availing foreign currency for remittance towards
purchase of lottery tickets?
a) USD, 5000
b) USD 10,000
c) USD 25,000
d) Not permitted (None of these)
22) ERG theory has been propounded by:
a) Clayton Alderfer
b) Eric Berne
c) Frederick Herzberg
d) Abraham Maslow
23) Quote TT rate to a foreign correspondent maintaining
a Vostro Account with your Overseas Branch, for
funding the account, if Interbank rate for USD is 44.7250/
7350 and a margin of 0.05% is to be applied (rounded to
0005 paise):
a) 44.7250
b) 44.7375
c) 44.7575 d) 44.7025
24) Mrs.Narayanan wants to send a Deepavali gift to her
daughter in UK. What is the ceiling for availing foreign
currency for remittance toward gift or donations?
a) USD 500 per month
b) USD 5,000 per year
c) USD 5,000 per month d) USD 1,00,000 per year
25) Which one of the following statements is false?
a) Employees feedback is useful for the organisation

GENERAL BANK MANAGEMENT (CAIIB)

TEST 02

CTDI

b) There is no need to develop a questionnaire for the

organisation as they are available in the market which can be
used across organisations
c) The survey has to be planned well, if not it can be counter
productive
d) None of these
26) The compensation paid to the Managerial positions
is commonly referred as:
a) Wages b) Salary c) Remuneration
d) Fees
27) Message flow structure of our RTGS is:
a) V-shaped b) Y-Shaped c) L-Shaped
d) T-Shaped
28) Which one of the following statements is false?
a) New skills can easily be blended with the old ones
b) Job analysis is the basic framework for most of the HRD
Systems
c) Career Planning is a motivational exercises
d) Performance Appraisal, Training and Development are
critical elements in the entire HRD System
29) Johari Window is most useful for:
a) Understanding others b) Self-Awareness
c) Working in Teams
d) Improving inter-personal relations
30) Closed and Open Stored Value Card is also known
as:
a) Electronic Purse
b) Electronic Wallet
c) Both a and b
d) Magnetic Strip Card
31) In ISDN based communication, BRI connectivity
supports:
a) Two 64 kpb B- channels
b) One 128 kbp B channels
c) One 16 kbp D channels
d) Both a and c above
32) Which one of the following statements is true?
a) Performance appraisal system cannot be widely used for
employees development as it lacks objectivity.
b) There is no need to make the appraisal system open and
transparent, it may spoil relations at work place
c) Appraisal system generally suffers from halo effect
d) None of these
33) According to Hertzbergs Two factor Motivation
theory, ______is a Motivator.
a) Responsibility
b) Company policy and administration
c) Interpersonal relations
d) None of the above
34) Which one of the following statements is true?
a) Pedagogy and androgogy mean the same thing
b) Training plan is a summary of all training needs identified
c) It is better to do all the training in house
d) Evaluation of training is an important step but it may not be
possible
35) Which one of the following statements is true?
a) People component of an organisation has always received
due attention
b) Management theories and approach to people
management are very closely related
c) Scientific Management approach is the foundation of
todays concept of Human Resource Management
d) Personal Management and HRD are synonymous terms
36) The role of Project Manager is to plan, co-ordinate
and control the project terms efforts. The Project
Manager is expected to _____:
(i) Have flexibility and adaptability to changing situations
(ii) Manage Data Warehouse
CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH

(iii) Have understanding Technical problems and design

details
a) (i) and (ii)
b) (i) and (iii) c) (ii) & (iii) d) (i), (ii) & (iii)
37) Organizations must transform themselves into ebusiness to expand markets, improve efficiency and
retain customers. The dimensions on which e-business
is carried out should be:
a) SCM b) CRM
c) E-Commerce
d) All of these
38) A Data Warehouse Architecture (DWA) is a way of
representing the overall structure of data. Which of the
following part/s may be included in the architecture of
DWA? (select the answer which in your option is true)?
i) Data Access Layer
ii) Data Directory (Metadata) Layer
iii) Data Staging Layer
a) (i) and (iii)
b) (i) ,(ii)and (iii) c) (ii) & (iii) d) (i) & (ii)
39) The SQL (Structure Query Language) is referred as
query Language for relational databases. Which of the
following part/s does the SQL have? ( Select the answer
which in your opinion is true)?
i) Data Definition Language (DDL)
ii) Data Manipulation Language (DML)
iii) Embedded DML
a) (i) & (ii)
b) (i) & (iii)
c) (i),(ii) & (iii) d) (ii) & (iii)
40) VSAT system enables to carryout:
a) Electronic funds transfer
b) EFT / POS
c) Asynchronous Transfer Mode (ATM) traffic
d) All of the above
41) The class of the IP Address and the subnet mask
determine:
a) As to which part belongs to the network address
b) As to which part belongs to the node address
c) Both a and b
d) None of these
42) In Prototype:
a) The user specifies the entire system
b) The user specifies part of the system
c) The user describes what the system is going to be used
for
d) All of the above
43) The major types of information systems are (Select
the answer which in your opinion in true).
(i) Transaction Processing System (TPS) (ii) Management
Information System (MIS) (iii) Decision Support System
(DSS).
a) (i) & (ii)
b) (i) & (iii) c) (i), (ii) & (iii)
d) (ii) & (iii)
44) Corporate Office of a Bank wants to send and receive
messages through network. To ascertain integrity,
authenticity and non-repudiation of the messages the
bank should use:
a) Digital Signature
b) Symmetric Cyphers
c) Rivest Cyphers
d) All of the above
45) Marketing consists of certain inter related concepts
which focus on:
a) Customers, advertising and promotion
b) Customers and a set of management techniques
c) Pricing and product development
d) Packaging and product development
46) A Bank wants to maintain a single RDBMS, but wants
to restrict access to all the data in the database by users.
This can be done by Database Administrator by:
a) Scheme Definition
b) Granting of authorization for data access
c) Storage structure and access method
d) Integrity constraints specification
47) Marketing management is a process involving:

GENERAL BANK MANAGEMENT (CAIIB)

TEST 02

CTDI

a) Analysis, planning, implementation and control

b) Goods, services and ideas
c) Stimulation of demand for the companys product and
satisfaction to the customer
d) Satisfaction to the customers involved and the personnel
dealing with customer market
48) In Centralized Banking Solution ( CBS), the Banks
are facing problem of reliable connectivity. To overcome
this problem banks should:
a) Keep server at every branch
b) Restrict to limited services through CBS
c) Have standby connectivity
d) All the above
49) Marketing concept rests on 4 main pillars which are:
a) Large market target sales, profitability and product
innovation
b) Target market, customer needs, integrated marketing and
profitability
c) Target customer group, customer needs, selling orientation
and social marketing
d) Value, cost, satisfaction of customers and profitability
50) Several branches of a Nationalized Bank are being
provided SFMS server, which requires Digital Certificate.
The branches are operating on 8 to 8 basis. To overcome
the problem of giving digital certificates to every
concerned official, the bank should get digital certificate:
a) In the name of branch and concerned officials should use
b) In the name of Branch Manager and concerned officials
should use
c) For the server and concerned officials should use.
d) None of these
51) A Bank has got demographic data and want to
classify the data into different population segment
depending upon their buying habits. Which data mining
tool can be used by the bank?
a) Clustering
b) Forecasting
c) Classification
d) Both a and c
52) A Bank wants to use back up technique to provide
for ongoing operation of a LAN when the file server fails.
The bank should use:
a) Disk arrays
b) H Backup c) Disk Duplexing
d) Disk mirroring
53) The three alternatives in collecting data for marketing
research to:
a) Sampling, questionnaire and door to door survey
b) Books and publications, interviewing of customers &
experiment
c) Economic surveys, industry reports and library reference
d) Observation, experiment and survey
54) What are the factors that influence a customers
Choice of Bank?
a) Safety, return and quality of services
b) Location, range of products and return
c) Quality of service, personalized service and location
d) Return, location, quality of service and range of service
55) What is the term given to a bank that serves a small
market segment not being served by the larger banks?
a) Market leader
b) Market follower
c) Market nicher
d) Market challenger
56) Servucation Process means:
a) Survival against competition
b) Qualilty of service to the customers
c) Offering range of service to meet the needs of various
customers
CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH

d) Simultaneous occurrence of production and consumption

57)____ is a name, sign or symbol intended to identify
the goods / services of one seller and differentiate them
from those of the competitors .
a) Attribute b) Brand
c) Product
d) Ambassador
58) A customer judges quality not only on the basis of
technical quality of the product services package but
also by its functional quality. This is known as:
a) Triangle of service theory of Karl Albrecht
b) Services marketing model of Gronross
c) Interactive Marketing model of Leonard and Berry
d) Services quality model of Gronross
59) Service quality can be judged based on ____ (Select
the option which is most appropriate)
a) Courtesy, problem solving ability and office environment
b) Speed and range of service
c) Appearance of staff, speed and accuracy of processing of
transaction and courtesy
d) Reliability assurance and empathy
60) Which of the following is not a base for segmenting
consumer market?
a) Demographic segmentation
b) Psychographic segmentation
c) Behavioural segmentation
d) Physiological segmentation
61) Which of the following terms is not associated with
customer relationship marketing?
a) Pure competition
b) Pure monopoly
c) Oligopoly
d) Monopolistic competition
62) Which of the following terms is not associated with
customer relationship marketing?
a) Suspects
b) Prospects
c) Disqualified prospectus d) Productive Prospectus
63) Secondary data are data that:
a) Already exist elsewhere, having been collected elsewhere
b) Available with a company
c) Available from govt. publications
d) Collected from market place
64-67) Read the following case carefully Q. 64 to 67 are
based on this case. Examine the various alternatives
provided and select the answer / alternative which you
consider to be the most appropriate.
An exporter M/s XYZ Ltd. dealing in exports of Woolen
garments for last 3 years, with estimated sales of Rs. 5
crores during the year approaches the bank and
requests for sanction of export credit facilities. The bank
sanctions export credit limits as under:
PCL / FBP / FBN Rs. 100 lacs
Sub-limit: PCL (Rs. 50 lacs) Margin 20% on FOB value.
FBP (Rs. 50 lacs) Margin 10% on invoice value
FBN could be allowed upto Rs. 100 lacs at 5% margin on
invoice value.
Bank charges interest on PCL at 8% up to 180 days,Post
shipment 8% on sight documents & 8.5% for DA documents
up to 90 days and 9.50% thereafter and OD interest at 12%.
The company receives an export order for USD 125,000 from
M/s Monte-carlo Japan Division for export of Ladies
sweaters. The prices are on C&I basis. On 9-12-2005 when
the USD / INR rate was 44.50, he approaches the bank for
releasing PCL, which is released as per terms of sanction.
On 9-1-2006, the exporter submits to the bank, export
documents, drawn on sight basis for USD 124,000 drawn on
C&I basis, and requests the bank to purchase the documents

GENERAL BANK MANAGEMENT (CAIIB)

TEST 02

CTDI

and afford credit to companys current account. The bank

purchases the documents and credits / debits the current
account, after adjustment of PCL and interest dues under this
order. The prevailing exchange rate of the day, were as
under:
TT Buying 44.30, TT selling 44.50 Bill Buying 44.25 and Bill
Selling 44.55
The documents are realized on 7-2-2006, value 6-2-2006
after deduction of foreign bank charges of USD 200. The
bank adjusts the outstanding post shipment advance against
the bill.
64) What will be the amount of interest recovered, if any,
on account of adjustment of PCL, at the time of purchase
of export bill?
a) Nil
b) Rs. 7,607
c) Rs. 27,059
d) Rs. 8,659
65) What is the amount of post shipment advance
allowed by the Bank under FBP, for the bill submitted by
the exporter?
a) Rs. 49,38,300
b) Rs. 49,78,125
c) Rs. 50,00,000
d) Rs. 54,87,000
66) What is the amount that the bank allows as PCL to
the exporter against the given export order, considering
the profit margin of 10% and estimated insurance cost of
15%?
a) Rs. 55,62,500
b) Rs. 3782500
c) Rs. 40,60,625
d) Rs. 44,50,000
67) What will be the applicable rate at which the Bank
would have purchased the export documents submitted
by M/s XYZ Ltd.
a) Rs. 43.30
b) Rs. 44.30 c) Rs. 44.55 d) Rs. 44.25
68-72: Read the following case carefully. Q. No. 6872
are based on this case. Examine the various alternative
provided for answers, keeping in view the facts of the
case and select the answer / alternative which you
consider closely reflects the relationship between the
two officials.
Mr. Mohan Chandra, Assistant General Manager incharge of Credit at Zonal Office of a bank was an
autocratic boss and wanted to have full control over all
the decisions and activities. Four officers viz. Mr.
Swaminathan, Mr. Ghosh, Mr. Mehta and Mr. Patil were
working under him and directly reporting to him. Mr.
Swaminathan quite,systematic and efficient quoting all
the rules and regulations correctly and giving the
rationale while proposing a decision. Mr. Chandra
generally used to clear his cases without much of
queries. Mr. Ghosh,new to credit department,did not
have much exposure in the credit area. He used to seek
guidance and suggestions from his colleagues and
boss. Thus,he was prone to frequent firings from the
boss for not being able to justify his proposed
decision.This used to depress him.Mr. Mehta was a
strong man. He used his commonsense for his
decisions and was not much bothered about the
procedures and guidelines.An argumentative man he
used to take a stand on his proposed action. He felt that
the knowledge of Mr. Mohan Chandra is only superficial.
He used to challenge him for differing from his proposed
decision. Mr. Patil was another character. He was very
casual in his approach and was marking the time till
retirement. He used to be always in past glory and
condemning any thing and every one including the
CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH

decisions taken by his boss. He used to hide his

inefficiency by pointing out others mistakes.
68) Between Mr. Mohan Chandra and Mr. Mehta from the
point of view of Mr. Mehta:
a) I am ok, you are ok
b) I am ok, you are not ok
c) I am not ok, you are ok d) I am not ok, you are not ok
69) Between Mr. Mohan Chandra and Mr. Patil from the
point of view of Mr. Patil.
a) I am ok, you are ok
b) I am ok, you are not ok
c) I am not ok, you are ok d) I am not ok, you are not ok
70) Between Mr. Mohan Chandra and Mr. Swaminathan
from the point of view of Mr.Swaminathan:
a) I am ok, you are ok
b) I am ok, you are not ok
c) I am not ok, you are ok d) I am not ok, you are not ok
71) Between Mr. Mohan Chandra and Mr. Ghosh from the
point of view of Mr. Ghosh:
a) I am ok, you are ok
b) I am ok, you are not ok
c) I am not ok, you are ok d) I am not ok, you are not ok
72) Between Mr. Mohan Chandra and Mr. Swaminathan
from the point of view of Mr. Mohan Chandra:
a) I am ok, you are ok
b) I am ok, you are not ok
c) I am not ok, you are ok d) I am not ok, you are not ok
73-74: Read the following case carefully. Q. No. 73 and
74 are based on this case. Examine the various
alternatives provided for answers to the questions given
below, keeping in view the facts of the case and select
the answer / alternative which you consider to be the
most appropriate.
Mr. Satpal Singh joined a bank as a specialized officer as
economist. He got first promotion quite early alongwith his
batch mates and his performance as well as motivation level
was quite high. Being youngest in his batch he was expecting
to reach to the level of DGM to head the Research
Department of the bank. He used to have difference of
opinion with his boss Mr. Maheshwari, both on official and
other issues. Mr. Maheshwari was not happy with the
behaviour of Mr. Singh and used to criticize him publicly. Mr.
Singh was trying to ignore his comments and was
concentrating on his job performance. Since both Mr.
Maheshwari and Mr. Singh belonged to the specialized
department there was no chance for getting rid of each other.
When the time for next promotion came, Mr. Singh was
hopeful to get the promotion because of his performance. To
his surprise, he was not selected. He came to know
informally that his Performance Appraisal Report (PAR) was
not upto the mark. He was thoroughly disappointed but
continued to perform. He got an opportunity in another bank
and decided to join at the same level losing all the benefits of
his seniority.
73) The above de-motivational situation has been best
explained by:
a) Maslows Need Hierarchy theory
b) Herzbergs Two Factors Theory
c) Vrooms Expetancy Model
d) Adams Equity Theory
74) The above issue pre-dominantly related to:
a) Inter-personal relations
b) Performance Appraisal System
c) Job Rotation Policy
d) Promotion Policy
75-76: Read the following case carefully. Q. No. 75 and
76 are based on this case. Examine the various
alternatives provided for answers to the questions given
below, keeping in view the facts of the case and select

GENERAL BANK MANAGEMENT (CAIIB)

TEST 02

CTDI

the answer / alternative which you consider to be the

most appropriate.
Mr. Ramesh Kumar a post graduate in Mathematics has
joined as a PO in a public sector bank. Though good at
Computers, and getting offers for computer related jobs from
small firms ,he did not take up because of lack of job security
and stability. Initially he was posted in the Computer Cell at
the Zonal Office of the bank for a period of 3 years and his
work was highly appreciated. He was given advanced
training in computer programming and networking. He used
enjoying his job thoroughly. Due to banks rotation policy Mr.
Kumar was posted in the general administration to deal with
the staff discipline. He was not given a computer. He has
started losing his interest in the job and was missing from his
seat and was generally found in the Computer Cell learning
some advanced computer skills.
75) The above issue mainly relates to:
a) Job security and stability
b) Lack of recognition and appreciation
c) Placement Policy
d) Lack of interest in new job
76) Pre-dominant need of Mr. Kumar is:
a) Social Need
b) Safety Need
c) Self-Actualization Need
d) Recognition Need
Read the following case carefully. Q.77-80 are based on
this case. Examine the various alternatives for the
answers to the questions given below and select the
answer, which you consider to be the most appropriate.
a) The clock struck 10. Three men entered the branch. They
turned out to be IS Auditors. Without exchanging normal
pleasantries, one of them demanded a copy of Total Branch
Automation (TBA) operational guidelines for Database
Administrator (DBA). DBA started wondering what guidelines
or manual they were demanding? He rushed to Branch
Managers cabin, but Branch Manager was also not aware of
such manual. Branch Manger told DBA to enquire from Indira
Madam, the oldest and senior most officer of the Branch.
Indira Madam was also not aware of the rare manual. The
Branch Manager took initiative and asked IS auditors about
the details of the manual. With the help of IS Auditor the
manual was located in a cupboard of Branch Managers
cabin. A little later one IS Auditor asked DBA for software
details. Branch Manager and DBA were fully prepared for this
query. They had already informed computer software expert
a day in advance about the audit, DBA requested the auditor
to wait for 10 minutes, because, software expert was
expected to come in 10 minutes. IS Auditor was also
informed that here nobody is expert on the software package
and so all queries are resolved by vendors man IS Auditor
was surprised to note that the outsider is working as System
Administrator of the branch, without being aware of branch,
without being aware of branch working procedures.
The branch was not able to produce invoices to the server,
PCs and printers etc. no one knew anything. The whole
branch was struggling to produce the required details and
documents to the IS Auditor. The IS Auditor also demanded
to show him the details of insurance Policies and Annual
Maintenance Contracts (AMC) of hardware. It appeared that
AMC/Insurance was not renewed (as per Indira Madam)
A little later, the software expert appeared. The software
expert started replying the query of IS Auditors and DBA
came back to his seat. After some time IS Auditor asked DBA
what the software expert was doing alone in the server room
CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH

without him. DBA replied that he must have been rectifying

some problem whenever we get stuck up, we call him and he
is co-operative and we trust him.
77) In computerized branches:
a) Vendors man should be allowed to work as System
Administrator
b) The branch officials cant be system expert
c) Outsiders should not be allowed to work in server room in
isolation
d) Software vendor / engineer should work with DBA
password.
78) Whenever IS Audit conducted at branch level:
a) IS Auditor should carry required manual with them
b) Branch people should be informed in advance about the
requirements of IS Auditors
c) Branch should provide all the required documents
d) None of these
79) In the present case:
a) The Head Office has not made mandatory to follow
guidelines
b) Branch people were not properly trained for working in
computerized environment
c) There was total negligence on the part of branch officials
d) The auditors are unnecessarily demanding several
documents.
80) The AMC and Insurance were not renewed for two
years. This shows:
a) Negligence on the part of Branch Officials
b) Negligence on the part of IS Auditor
c) Negligence on the part of Branch Manager
d) All of the above
Read the following case carefully. Q. No. 81-85 are based
on this case. Examine the various alternatives provided
for answers to the following questions and select he
answer / alternatives which you consider to be the most
appropriate.
Progressive Bank decided to introduce a few new retail
segment products for both deposits and loans with catchy
names like Griha Laxmi Deposit, Shishu Bhavishya Deposit,
Sunehra Nivas Grilha Rin and Chal Mere Sathi Vehicle Loan.
Catchy hoardings, leaflets and posters were prepared,
displayed and liberally distributed in the market places.
However, the growth of business in the new products was
very poor.
The Top Management of the Bank appointed a consultancy
firm to find out the reasons for such poor performance. The
consultancy firm visited some branches and found that when
people, being attracted by such ad campaign, approached
the counters of different branches, their experience was
unhappy. At some branches employees were not conversant
with the schemes and at some others, the requisite stationery
were not available. The consultancy firm then informed the
Top Management of the Bank that merely developing some
new products and giving wide publicity will have little impact
on business growth. To get the best results, out of any new
scheme, the Bank Management should take steps to sell the
schemes to the operating staff, offer them adequate training
about the operational details and ensure adequate supply of
the requisite stationery before launching any new product
and also certain incentives for bringing business under the
new schemes.
81) Which department has failed in their duties for which
the products have failed?

GENERAL BANK MANAGEMENT (CAIIB)

TEST 02

CTDI

a) Publicity Department
b) Banking Operations Deptt.
c) HRM Department
d) Marketing Department
82) What kind of staff profile is necessary for success of
any new product?
a) Positive attitude, willing to learn and a sense of belonging
to the organization
b) Knowledgeable, career aspirant and locally influential staff
c) Public relation quality, impressive appearance & well
dressed
d) Marketing orientation, good communication skills,
awareness about the marketing policies of the organization
and positive attitude
83) What is required to be ensured for successful
implementation of any product in any bank?
a) A professionally managed marketing department
b) A strong and effective HRM Department
c) An effective performance review system
d) A good employee relationship in the organization
84) Which of the following factors is not relevant to the
success of any new product?
a) Achievement Motive of staff
b) Performance linked career devl. plan of the organization
c) Payment policy for business growth
d) Selling of the new products to the staff at concessional
rates
85) What are the prerequisites for success of any new
product(s)?
a) Involvement of the Top Management
b) Effective publicity of the products
c) Customer Education
d) Marketing of the products to the internal customers.
Read the following case carefully. Q. No. 86-87 are based
on this case. Select the answer / alternative which you
consider to be the most appropriate.
A bank company had organized a seminar of its marketing
executives to deliberate and arrive at consensus on the
definition of services. After very intensive discussions, the
team could not agree to one agreed definition. They were
divided into two groups. One group defined services as
follows: A service is any act or performance that one party
can offer to another that is essentially intangible and does not
result in the ownership of anything; its production may or may
not be tied to a physical product.
The other group proposed the following definition: A service
is an activity or series of activities of more or less intangible
nature that normally, not necessarily, take place in
interactions between the customer and service employees
and / or physical resources or goods and / or systems of the
service provider, which are provided as solution to customers
problems.
86) Which are the common characteristics of services
highlighted in both the definition?
a) Intangible, an activity, two parties are involved
customers and service providers
b) Core value produced in buyer/ seller interaction, no
transfer of ownership and cannot be kept in stock.
c) Customers participation in production, production and
consumption are simultaneous processes.
d) A series of activities, provided as solution to customers
problem and physical resources / goods
87) None of the definition is original, definitions of the
first and second groups has been given respectively by:
CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH

a) Kotler and Bloom

b) Kotler and Gronross
c) Kotler and Bloom & Gronross d) Kotler and Keeth Crosier
88-90: Read the following situation carefully and answer
Q. No. 88 to Q. 90 by selecting the alternative which you
consider to be the most appropriate out of the
alternatives given:
Marketing
Marketing
Pricing Implication
Area
Objective
Product
Improved quality Higher cost -> price rise
acceptance
or lower profit
Advertising
Stronger support
Increased
advertising
and
Budget -> Price increase
Promotion
or lower profit
Consumers Greater
Increased
advtg.
/
/ Users
acceptance
Publicity effort i.e. higher
distribution cost -> higher
price / lesser profit
88) Who has propounded this approach?
a) J.J. Ward
b) T.K. Sinha Committee
c) Sukhamoy Chakraborty Committee d) S.J. Bedekar
89) Which marketing area should have priority to a
banker?
a) Product and distribution
b) Advertising, promotion and consumers / users
c) Distribution and consumers / users
d) Product and consumers / users
90) Which marketing objectives are aimed at greater
visibility?
a) Improved quality and greater customer acceptance
b) Improved quality and stronger support
c) Additional selling points and greater customer acceptance
d) Stronger support and additional selling points.
91) Which Committee had recommended use of technical
apparatus and systems in banks?
a) Ranga Rajan b) Vaz c) Kohli
d) Dr. Reddy
92) What was the objective of use of computers in
banks?
a) To better customer service
b) To better productivity
c) To better housekeeping
d) All the above
93) How are the computers helpful in achieving the
objectives by banks?
a) They have a high operating speed for handling lot of work
in short time
b) They are reliable in accuracy for bringing efficiency in
performance
c) They are cost effective and improve profitability
d) All the above
94) What type of computer system is used for ledgers
positing?
a) Stand alone b) Multi user
c) WAN
d) None
95) How data processing is handled in Advanced Ledger
Posting Machines?
a) At a centralised place
b) In the computer being used
c) At multi point situations
d) At the networking place
96) Where is data processing handled in Multi-user
computer net working system?
a) At a centralised place
b) In the computer being used
c) At multi point situations
d) At the networking place
97) How the different staff members work on multi user
computers system?

GENERAL BANK MANAGEMENT (CAIIB)

TEST 02

CTDI

a) They are provided an independent stand -alone computer

system
b) They transfer or share their data with other staff members
at regular intervals
c) They work on separate terminals connected with the main
computer
d) Any of the above
98) Which of the followings are in-built security features
in computers used in branches?
a) Transaction tracking
b) Pass world and locking
c) Data recovery and back ups
d) Disk duplex and mirror
e) All the above
99) What are the features of computers being used in
branches?
a) Data processing is fast
b) Software used is simple to operate
c) Staff members can easily handle without acquiring
specialization in computers
d) All the above
100) Which system is mainly used in branch level
computers?
a) Windows
b) Linux
c) Unix
d) None

CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH

CTDI

GENERAL BANK MANAGEMENT (CAIIB)

TEST 02
GENERAL BANK MANAGEMENT
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CTDI WISHES YOU ALL THE BEST

CTDI, SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH