CQIB EXAM 2026 FINAL PAPER FULLY
SOLVED FOR TOP PERFORMANCE
◉Debt Capital Markets. Answer: When a large company or
government wants to finance a project, it may look to issue bonds to
raise capital.
An Investment bank would help out in planning/documentation of
bond issuance.
◉Equity Capital Markets. Answer: When a company needs more
money in order to grow, they may look at undertaking an initial
public offering(IPO). Where it sells it's shares to the
public/investors.
The investment bank will put together a prospectus explaining the
terms of the
offering and the risks it carries, managing the issuance process and
helping the price of the offering.
◉Private Placements. Answer: Where customers plan an offering of
bonds with an institutional investor such as
,an insurance company or a retirement fund.
Can have be a quicker option as there is lower regulatory
requirements.
◉Mergers and Acquisitions. Answer: Where a company is looking to
buy another company, investment banks offer
advice on how the company should proceed with the acquisition,
including the pricing of the offer.
◉Deposits for a Bank. Answer: Banks source their funds largely
from deposits.
Savings deposits - wages and salary.
Fixed term deposits - lump sum deposited for a specific period.
Current deposits - business accounts.
◉Types of Bank Loans. Answer: 1. Overdraft
2. Credit card
3. Short term money loans
4. Long term loans
, 5. Bills of exchange and promissory notes
6. Equipment leasing and hire purchase
7. Trade finance
◉Bills of exchange and promissory notes. Answer: Specialised
instruments, being an unconditional order in
writing between parties, where the bank purchases the bill amount
from the borrower, deducting charges.
On maturity the bill is presented to the borrower and the full
amount is collected.
◉Equipment leasing and hire purchase. Answer: Common forms of
borrowing for the financing of plant,
machinery and vehicles by individuals and businesses.
Taxation benefits are often linked to these forms of debt, making
them popular funding options.
◉Trade finance. Answer: Facilitating import and export transactions
including lending, letters of credit, factoring (accounts receivable
financing), export credit and insurance.
SOLVED FOR TOP PERFORMANCE
◉Debt Capital Markets. Answer: When a large company or
government wants to finance a project, it may look to issue bonds to
raise capital.
An Investment bank would help out in planning/documentation of
bond issuance.
◉Equity Capital Markets. Answer: When a company needs more
money in order to grow, they may look at undertaking an initial
public offering(IPO). Where it sells it's shares to the
public/investors.
The investment bank will put together a prospectus explaining the
terms of the
offering and the risks it carries, managing the issuance process and
helping the price of the offering.
◉Private Placements. Answer: Where customers plan an offering of
bonds with an institutional investor such as
,an insurance company or a retirement fund.
Can have be a quicker option as there is lower regulatory
requirements.
◉Mergers and Acquisitions. Answer: Where a company is looking to
buy another company, investment banks offer
advice on how the company should proceed with the acquisition,
including the pricing of the offer.
◉Deposits for a Bank. Answer: Banks source their funds largely
from deposits.
Savings deposits - wages and salary.
Fixed term deposits - lump sum deposited for a specific period.
Current deposits - business accounts.
◉Types of Bank Loans. Answer: 1. Overdraft
2. Credit card
3. Short term money loans
4. Long term loans
, 5. Bills of exchange and promissory notes
6. Equipment leasing and hire purchase
7. Trade finance
◉Bills of exchange and promissory notes. Answer: Specialised
instruments, being an unconditional order in
writing between parties, where the bank purchases the bill amount
from the borrower, deducting charges.
On maturity the bill is presented to the borrower and the full
amount is collected.
◉Equipment leasing and hire purchase. Answer: Common forms of
borrowing for the financing of plant,
machinery and vehicles by individuals and businesses.
Taxation benefits are often linked to these forms of debt, making
them popular funding options.
◉Trade finance. Answer: Facilitating import and export transactions
including lending, letters of credit, factoring (accounts receivable
financing), export credit and insurance.
