Understanding Bank Classifications

What is a retail bank primarily focused on?

• Providing financial services to individuals and small businesses.

• Focusing solely on international trade financing.

• Providing insurance products exclusively for businesses.

• Offering investment banking services to large corporations.

Which type of bank deals mainly with large corporations?

• Retail bank

• Credit union

• Investment bank

• Central bank

Define a universal bank.

• A universal bank is a type of insurance company.

• A universal bank focuses solely on retail banking services.

• A universal bank is a financial institution that provides a variety of financial services, including commercial and investment banking.

• A universal bank only offers savings accounts and loans.

What distinguishes a narrow bank from other types of banks?

• A narrow bank is a type of credit union that provides loans to members.

• A narrow bank offers a wide range of loan products.

• A narrow bank does not engage in lending activities and only accepts deposits.

• A narrow bank primarily focuses on investment banking services.

Name one characteristic of small finance banks.

• They are not regulated by any authority.

• They aim to promote financial inclusion.

• They offer only investment services.

• They primarily focus on corporate banking.

What services do payment banks typically offer?

• Providing insurance services

• Offering investment advice

• Payment banks typically offer services like accepting deposits, providing savings accounts, and facilitating money transfers.

• Issuing credit cards

How do corporate banks differ from retail banks?

• Corporate banks serve businesses; retail banks serve individuals.

• Corporate banks cater to individual customers; retail banks serve large corporations.

• Corporate banks offer savings accounts; retail banks provide business loans.

• Corporate banks focus on personal loans; retail banks handle corporate investments.

What is the primary function of a universal bank?

• To provide a comprehensive range of financial services.

• To focus solely on investment banking services.

• To specialize in insurance products exclusively.

• To provide only savings accounts and loans.

Can a bank be classified as both retail and corporate? Why or why not?

• Yes, a bank can be classified as both retail and corporate.

• No, a bank can only be classified as retail.

• No, retail and corporate banks are completely separate entities.

• Yes, but only if it serves small businesses.

What regulatory requirements do small finance banks have?

• They must only focus on corporate lending.

• Small finance banks must maintain capital adequacy, follow priority sector lending norms, and comply with RBI regulations.

• Small finance banks are exempt from all RBI regulations.

• Small finance banks do not need to maintain any capital reserves.