Preview Questions Retail Banker | Role Specific Skill

Question 1: What does escrow refer to in mortgage lending?

Which action should you take?

Choose only one option

Secondary market for mortgage loans

Penalty fee for early loan closure

Temporary account for taxes and insurance payments

Legal process for transferring property ownership

Question 2: In the BFSI industry, what does liquidity risk refer to when recommending a short-term investment?

Which action should you take?

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The risk that the investment will not yield returns in the short term

The risk of high management fees eating into returns

The risk of being unable to sell an asset quickly without incurring a loss

The risk of the investment losing its value due to market fluctuations

Question 3: How should a banker assess the creditworthiness of a borrower with a recent bankruptcy?

Which action should you take?

Choose only one option

Look solely at the borrower's collateral

Focus on the period since bankruptcy and their financial behavior since then

Automatically deny the application based on the bankruptcy

Only look at the borrower's current assets

Question 4: What is the primary focus of the Know Your Customer (KYC) process in mitigating risk?

Which action should you take?

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To enhance customer experience

To expedite loan approval processes

To identify customer preferences for marketing purposes

To prevent fraud and money laundering by verifying customer identity

Question 5: Which type of mortgage allows for periodic adjustments to the interest rate based on a predetermined index?

Which action should you take?

Choose only one option

Interest-only mortgage

Adjustable-rate mortgage (ARM)

Fixed-rate mortgage

Balloon mortgage

Question 6: How does empathy during customer interaction improve service quality?

Which action should you take?

Choose only one option

Reduces time spent with each client

Limits communication to essential queries

Builds trust and strengthens relationships

Focuses only on problem resolution