CQIB TEST PAPER 2025/2026 QUESTIONS WITH ANSWERS
RATED A+
✔✔Q11 - The ______________ stage of the customer life cycle is where individuals
have minimal or no outstanding debt
a) Youth
b) Independent
c) Retirement
d) Empty Nesters - ✔✔d) Empty Nesters
✔✔Q12 - Most financial transactions entered into Banks and other financial institutions
involve some sort of contract. Which of the following does NOT:
a) Insurance policy
b) Finance company agreement
c) Loan agreements
d) Closing a savings account - ✔✔d) Closing a savings account
✔✔Q13 - What is a honeymoon rate?
a) It provides certainty of knowing what repayments are
b) The rate fluctuates
c) Discounted interest rate for set period of loan
d) Restrictions on making additional repayments during the loan - ✔✔c) Discounted
interest rate for set period of loan
✔✔Q14 - What is the role of Internal Audit?
a) Provide guidance and direction
b) Apply internal controls and risk responses
c) Review 1st and 2nd line activities; and to provide an independent perspective and
challenge
d) Develop risk management frameworks - ✔✔c) Review 1st and 2nd line activities; and
to provide an independent perspective and challenge
✔✔Q15 - Who is NOT a price taker?
a) Corporations and Government
b) Brokers who act as intermediaries
c) Banks and NBFI's
d) (b) and (c) - ✔✔d) (b) and (c)
✔✔Q16 - What is the 5-step process for Ethical Dilemmas?
a) Facts, discuss, act, review, recognise
,b) Discuss, recognise, facts, act, review
c) Facts, discuss, review, recognise, act
d) Recognise, facts, Discuss, act, review - ✔✔d) Recognise, facts, Discuss, act, review
✔✔Q17 - What is the four-step process to follow when handing customer complaints?
a) Gather facts, verify, solution, referral
b) Gather facts, build rapport, verify, solution
c) Empathise, gather facts, solution, verify
d) Build rapport, gather facts, verify, referral - ✔✔c) Empathise, gather facts, solution,
verify
✔✔Q18 - Samuel explains that the XYZ savings booster account has a bonus interest
rate and is a good choice for customers who want a higher return on their account and
do not need to access their funds. What type of advice is Samuel providing?
a) Factual information
b) General advice
c) Personal advice
d) Product recommendation - ✔✔b) General advice
✔✔Q19 - What is the FIRST line of defence in the 'three lines of defence?'
a) Risk Management Committee
b) Operational Manager
c) Internal Audit
d) Internal Compliance - ✔✔b) Operational Manager
✔✔Q20 - What is "Chinese walls" ?
a) Information barriers within the organisation to prevent exchanges or communication
lead to conflicts of interest
b) Information barriers within the organisation to prevent exchanges or communication
of customer information
c) Information barriers within the organisation to prevent exchanges or communication
of meetings agenda
d) Information barriers within the organisation to prevent exchanges or communication
of performance review - ✔✔a) Information barriers within the organisation to prevent
exchanges or communication lead to conflicts of interest
✔✔Q21 - What does AFCA stand for?
,A) Australian Financial Complaints Authority
b) Australasian Financial Complaints Authority
c) Authorised Financial Complaints Association
d) Australasian Financial Compensation Authority - ✔✔A) Australian Financial
Complaints Authority
✔✔Q22 - What step in the 5 Step Process for Resolving Ethical Decisions is where you
think about the issue and write everything down?
a) Facts
b) Discuss
c) Recognise
d) Review - ✔✔c) Recognise
✔✔Q23 - ____________'s research indicates that we have 2 ways of thinking: Fast
Thinking & Slow Thinking.
A) Carol Gilligan
b) Immanuel Kant
c) Daniel Kahneman
d) Archie Carroll - ✔✔c) Daniel Kahneman
✔✔Q24 - Which of the following regulatory bodies is the "lender of last resort"?
A) Reserve Bank of Australia
b) Council of Financial Regulators
c) Australian Prudential Regulation Authority
d) Australian Securities Exchange - ✔✔A) Reserve Bank of Australia
✔✔Q25 - Which of the below are not forms of life insurance?
A) Endowment insurance
b) Insurance bonds
c) Coinsurance and averaging provisions clause
d) Income protection insurance - ✔✔c) Coinsurance and averaging provisions clause
✔✔Q26 - Under RG271 the maximum timeframe for Standard Complaint must be:
a) No later than 45 calendar days after receiving a complaint
b) No later than 21 calendar days after receiving the complaint
c) No later than 30 calendar days after receiving the complaint
d) No later than 90 days after receiving the complaint - ✔✔c) No later than 30 calendar
days after receiving the complaint
✔✔Q27 - Which of the following would be included within the comparison rate of the
loan?
, a) Government fees and charges
b) Interest rate being applied
c) Bank loan arrangement fees
d) (b) and (c) - ✔✔d) (b) and (c)
✔✔Q28 - What is liquidity?
a) ability of the bank to generate earnings compared to its expenses and costs
b) The Banks' ability to meet all expenses using only liquid assets
c) The Bank's ability to meet its long term financial obligations
d) All of the above - ✔✔b) The Banks' ability to meet all expenses using only liquid
assets
✔✔Q29 - The Competition and Consumer Act (2010) covers anti-competitive behaviour
in which of the following areas:
A - Exclusive dealing
B - Unfair business practice
C - Product safety
D - Collective bargaining
a) A and B
b) B, C and D
c) A and D
d) C and D - ✔✔c) A and D
✔✔Q30 - Which of the following sought to improve executive accountability in ADI's?
a) AFCA
b) BEAR
c) BCBS
d) ASIC - ✔✔b) BEAR
✔✔Q31 - Elliot works in the lending team at NAB. A client has come into the bank and
is threatening to take Elliot to court if he doesn't approve his home loan before the end
of the client's settlement period. What is the chief threat to Elliot acting professionally in
this matter?
a) Familiarity
b) Self Interest
c) Self-Review
d) Intimidation - ✔✔d) Intimidation
✔✔Q32 - Stacey owns a hairdressing salon. Over the weekend, the store next door had
a chemical leak and Stacey and her team had to vacate the premises for a week and
RATED A+
✔✔Q11 - The ______________ stage of the customer life cycle is where individuals
have minimal or no outstanding debt
a) Youth
b) Independent
c) Retirement
d) Empty Nesters - ✔✔d) Empty Nesters
✔✔Q12 - Most financial transactions entered into Banks and other financial institutions
involve some sort of contract. Which of the following does NOT:
a) Insurance policy
b) Finance company agreement
c) Loan agreements
d) Closing a savings account - ✔✔d) Closing a savings account
✔✔Q13 - What is a honeymoon rate?
a) It provides certainty of knowing what repayments are
b) The rate fluctuates
c) Discounted interest rate for set period of loan
d) Restrictions on making additional repayments during the loan - ✔✔c) Discounted
interest rate for set period of loan
✔✔Q14 - What is the role of Internal Audit?
a) Provide guidance and direction
b) Apply internal controls and risk responses
c) Review 1st and 2nd line activities; and to provide an independent perspective and
challenge
d) Develop risk management frameworks - ✔✔c) Review 1st and 2nd line activities; and
to provide an independent perspective and challenge
✔✔Q15 - Who is NOT a price taker?
a) Corporations and Government
b) Brokers who act as intermediaries
c) Banks and NBFI's
d) (b) and (c) - ✔✔d) (b) and (c)
✔✔Q16 - What is the 5-step process for Ethical Dilemmas?
a) Facts, discuss, act, review, recognise
,b) Discuss, recognise, facts, act, review
c) Facts, discuss, review, recognise, act
d) Recognise, facts, Discuss, act, review - ✔✔d) Recognise, facts, Discuss, act, review
✔✔Q17 - What is the four-step process to follow when handing customer complaints?
a) Gather facts, verify, solution, referral
b) Gather facts, build rapport, verify, solution
c) Empathise, gather facts, solution, verify
d) Build rapport, gather facts, verify, referral - ✔✔c) Empathise, gather facts, solution,
verify
✔✔Q18 - Samuel explains that the XYZ savings booster account has a bonus interest
rate and is a good choice for customers who want a higher return on their account and
do not need to access their funds. What type of advice is Samuel providing?
a) Factual information
b) General advice
c) Personal advice
d) Product recommendation - ✔✔b) General advice
✔✔Q19 - What is the FIRST line of defence in the 'three lines of defence?'
a) Risk Management Committee
b) Operational Manager
c) Internal Audit
d) Internal Compliance - ✔✔b) Operational Manager
✔✔Q20 - What is "Chinese walls" ?
a) Information barriers within the organisation to prevent exchanges or communication
lead to conflicts of interest
b) Information barriers within the organisation to prevent exchanges or communication
of customer information
c) Information barriers within the organisation to prevent exchanges or communication
of meetings agenda
d) Information barriers within the organisation to prevent exchanges or communication
of performance review - ✔✔a) Information barriers within the organisation to prevent
exchanges or communication lead to conflicts of interest
✔✔Q21 - What does AFCA stand for?
,A) Australian Financial Complaints Authority
b) Australasian Financial Complaints Authority
c) Authorised Financial Complaints Association
d) Australasian Financial Compensation Authority - ✔✔A) Australian Financial
Complaints Authority
✔✔Q22 - What step in the 5 Step Process for Resolving Ethical Decisions is where you
think about the issue and write everything down?
a) Facts
b) Discuss
c) Recognise
d) Review - ✔✔c) Recognise
✔✔Q23 - ____________'s research indicates that we have 2 ways of thinking: Fast
Thinking & Slow Thinking.
A) Carol Gilligan
b) Immanuel Kant
c) Daniel Kahneman
d) Archie Carroll - ✔✔c) Daniel Kahneman
✔✔Q24 - Which of the following regulatory bodies is the "lender of last resort"?
A) Reserve Bank of Australia
b) Council of Financial Regulators
c) Australian Prudential Regulation Authority
d) Australian Securities Exchange - ✔✔A) Reserve Bank of Australia
✔✔Q25 - Which of the below are not forms of life insurance?
A) Endowment insurance
b) Insurance bonds
c) Coinsurance and averaging provisions clause
d) Income protection insurance - ✔✔c) Coinsurance and averaging provisions clause
✔✔Q26 - Under RG271 the maximum timeframe for Standard Complaint must be:
a) No later than 45 calendar days after receiving a complaint
b) No later than 21 calendar days after receiving the complaint
c) No later than 30 calendar days after receiving the complaint
d) No later than 90 days after receiving the complaint - ✔✔c) No later than 30 calendar
days after receiving the complaint
✔✔Q27 - Which of the following would be included within the comparison rate of the
loan?
, a) Government fees and charges
b) Interest rate being applied
c) Bank loan arrangement fees
d) (b) and (c) - ✔✔d) (b) and (c)
✔✔Q28 - What is liquidity?
a) ability of the bank to generate earnings compared to its expenses and costs
b) The Banks' ability to meet all expenses using only liquid assets
c) The Bank's ability to meet its long term financial obligations
d) All of the above - ✔✔b) The Banks' ability to meet all expenses using only liquid
assets
✔✔Q29 - The Competition and Consumer Act (2010) covers anti-competitive behaviour
in which of the following areas:
A - Exclusive dealing
B - Unfair business practice
C - Product safety
D - Collective bargaining
a) A and B
b) B, C and D
c) A and D
d) C and D - ✔✔c) A and D
✔✔Q30 - Which of the following sought to improve executive accountability in ADI's?
a) AFCA
b) BEAR
c) BCBS
d) ASIC - ✔✔b) BEAR
✔✔Q31 - Elliot works in the lending team at NAB. A client has come into the bank and
is threatening to take Elliot to court if he doesn't approve his home loan before the end
of the client's settlement period. What is the chief threat to Elliot acting professionally in
this matter?
a) Familiarity
b) Self Interest
c) Self-Review
d) Intimidation - ✔✔d) Intimidation
✔✔Q32 - Stacey owns a hairdressing salon. Over the weekend, the store next door had
a chemical leak and Stacey and her team had to vacate the premises for a week and
