Exam (elaborations)
CQIB EXAM QUESTIONS AND ANSWERS
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CQIB EXAM QUESTIONS AND ANSWERS
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CQIB EXAM QUESTIONS AND ANSWERSWhat is wholesale banking? - answers- borrowing from and lending to corporate clients
or other financial institutions.
What is investment banking? - answers- serve high net worth customers in functions of
capital market activities i.e. Bonds and shares, trading and mergers and acquisitions
What are debt capital markets? - answers- where capital is raised through the issue of
bonds. Investment banks are involved to plan, manage, and sell the bonds
What are equity capital markets? - answers- where funds are raised by undertaking an
initial public offerings (ipo), selling shares to the public for the first time
What are private placements? - answers- plan an offering of bonds with institutional
investors that has lower reglulatory requirements
What is electronic funds transfer? - answers- funds transferred electronically between
banks
What are negotiable instruments? - answers- bank drafts, cheques and letters of credit
What are periodic payments? - answers- direct debit and standing orders, where the
bank mades payments on behalf of the customer
What are periodic collections? - answers- direct credits- where the bank collects
payments on behalf of the customer
What are debit cards? - answers- a card that is issued by the bank that lets the
customer buy for goods and services and drawn on money from their own account.
What are international money transfers? - answers- a transfer of funds internationally.
What are e-commerce payment systems? - answers- allows businesses to accept
electronic payments with settlement on the same day.
What is insurance? - answers- a contract between two parties, whereby one party
agrees to make payment to another party, who will assume liability should an agreed
event occur
What is transfer of risk? - answers- a risk management technique whereby risk of loss
is transferred to another party
What is wealth management - answers- investment + superannuation + requirement
products
, What are safe custody services? - answers- the safekeeping of valuable assets and
documents
What is portfolio management? - answers- personalised management of a customers
investments
What are personal advisory services? - answers- private bank function supplying
specialist advise
What are corporatists advisory services - answers- specialist area of banking
associated with raising capital for corporate clients
What are mergers and acquisitions? - answers- where one company looks to purchase
another company- an investment bank offers advise on the process and pricing
What are chinese walls? - answers- barriers to mitigate exchanges of information that
could lead to conflict of interest
What are accepting deposits? - answers- the banks first core main function. It is how
banks source a majority of their funds
What is granting loans? - answers- banks second core main function
What is an overdraft - answers- a defined credit limit attached to a bank account that
can be drawn against
What is a credit card? - answers- allows for customers to purchase goods and services
now and pay them off at a later date- generally monthly.
What are bills of exchange and promissory notes? - answers- specialised instruments,
an unconditional order between parties where the bank purchases the bill amount and
on maturity the borrower pays the full amount.
What is equipment leasing and hire purchase? - answers- forms of borrowing to finance
plant, machinery and vehicles
What is trade finance? - answers- facilitation of import and export transactions e.g.
Lending, letters of credit, insurance
What is a short term loan- (personal loan) - answers- lending where the principle and
repayments are made over a shorter timeframe i.e. 5 years- generally for cars, holidays,
What is a long term loan? - answers- lending where the principle and repayments are
made over a longer timeframe i.e 30 years
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