JAIIB Paper 4 Module B Quiz 1

[Customer Requirements] Maslow‘s hierarchy generally starts with physiological needs, followed by safety, belongingness, esteem and self-actualisation. The framework helps explain why basic access and security may be central to customer expectations.

[Customer Requirements] Accessible information helps customers use banking services independently. Privacy and secure delivery remain important.

[Product Development] A personal loan is a bank asset because the borrower owes repayment. Customer deposits are liabilities.

[Credit Scoring] A credit score is a model-based indicator of credit risk, not a complete statement of wealth or a substitute for full underwriting.

[Credit Scoring] Limited history can reduce model certainty. Lenders may consider other permitted information and policy-based assessment.

[Retail Liability Products] Classification follows the applicable regulatory definition and inactivity period. Bank-generated entries alone do not necessarily count as customer-induced activity.

[Retail Asset Products] LTV expresses the loan amount relative to collateral value. It is one risk measure and does not replace affordability assessment.

[Retail Asset Products] Top-up loans may be available to existing borrowers, but eligibility, repayment capacity and account conduct should be reassessed.

[Credit and Debit Cards] Late payment may result in charges and reporting consequences under the card agreement and applicable rules.

[Remittance Products] RTGS settles transactions individually in real time on a gross basis and is commonly used for high-value payments.

[Remittance Products] Gross settlement processes transactions individually. Net settlement offsets obligations and settles the resulting net position.

[Digitisation] Digital delivery does not remove obligations around disclosure, consent, underwriting, privacy, grievance redress and secure data handling.

[AI and Technology] Audit logs help reconstruct events and investigate errors or suspicious activity. They should be protected from tampering and exposure.

[Recovery of Retail Loans] A sound policy sets lawful procedures, authority, conduct standards and documentation for consistent and fair recovery.

[Securitisation] Credit performance, prepayment, servicing, legal, liquidity and structural risks may affect asset-backed securities.

[Digitisation] Clear consent and key facts support informed decisions and compliant data handling. Digital convenience does not replace underwriting.

[Credit and Debit Cards] Debit cards generally access funds in a linked account, while credit cards provide credit under an approved limit and repayment terms.

[Product Development] Idea screening evaluates whether a concept fits customer needs and bank strategy and can be delivered within risk, cost and compliance constraints.

[Credit and Debit Cards] Prompt reporting helps the issuer investigate and apply relevant dispute and liability rules. Authentication secrets must never be shared.

[MIS] Conflicting figures may result from different definitions, cut-off times or data errors. Reconciliation is needed before management decisions.