JAIIB · PPB · Chapter 2

Ethics at the Individual Level

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What term describes the ultimate goals or end-states a person strives to achieve in life, such as a comfortable and secure life?

A

These are called terminal values — they represent the final objectives or desired end-states that an individual ultimately aims to attain.

Q

What type of value is defined as a desirable state of existence that one desires to achieve as an ultimate goal in one's lifetime?

A

Terminal value

Q

What term describes values that serve as means or tools to achieve terminal values, such as being polite, obedient, or self-controlled?

A

These are called instrumental values — they are behavioural modes or personal qualities used as stepping stones toward achieving terminal values.

Q

What is a 'norm' in the context of individual ethics at a bank?

A

An unwritten expectation of proper behaviour enforced only through group sanctions such as disapproval or exclusion

Q

How are terminal values and instrumental values distinguished in the context of individual ethics?

A

Terminal values are the desired end-states or ultimate life goals, whereas instrumental values are the means or behavioural traits (like honesty, ambition, or politeness) employed to reach those goals.

Q

What are the three essential elements of 'managing by values' as described in ethics at the individual level?

A

Identification, communication, and aligning values with practices

Q

What is the relationship between ethics and values at the individual level in banking?

A

Ethics at the individual level is grounded in personal values — the principles and beliefs that guide a banker's conduct, decisions, and professional behaviour on a day-to-day basis.

Q

Which application area of business ethics is primarily breached when a bank employee mis-sells a product by hiding key features?

A

Ethics of sales and marketing

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