1. Which of the following is likely to happen when a number of banks operating in a cell rises?

(a) Increasing competition leading to more intense financial engineering

(b) Widening profit margin due to more competition.

(c) Higher market concentration in the cell.

(d) All of the above

(e) (a) and (b) of the above

2. Which of the following is a source of competitive advantage in banking?

(a) Strong capital base

(b) Reputation for institutional risk management

(c) Quality of human capital in risk assessment and management

(d) Product and trade-related information advantage

(e) All of the above

3. Which of the following is true?

(a) Correspondent banking represents cooperation between domestic and foreign banks involved.

(b) Improvements in communication and automation of financial transactions lead to more cooperation amongst banks because they encourage relation driven business.

(c) Banks who are competing with each other can cooperate at the same time over different transactions in other market segments.

(d) (a) and (c) of the above

(e) (a) and (c) of the above