CQIB Study Cards Exam Questions With Correct Answers

CQIB Study Cards Exam Questions With
Correct Answers
Which |regulator |makes |and |enforces |rules |which |govern |the |capital |adequacy |of |Australian |
Banks? |- |CORRECT |ANSWER✔✔-The |Australian |Prudential |Regulation |Authority |- |APRA



What |events |occurred |in |the |Banking |Industry |in |1800s |and |early |1900s? |- |CORRECT |
ANSWER✔✔-First |Bank |in |Australia |was |Bank |of |NSW, |Established |in |1817 |Sydney. |

Discovery |of |gold |in |1851 |led |to |minting |of |Australia's |own |gold |coins |spurring |development |of
|Banking. |



Boom |in |Australian |property |market |in |1800s |led |to |Banking |crisis |in |1893.



What |events |occurred |in |1910-1920 |in |the |Banking |Industry? |- |CORRECT |ANSWER✔✔-
Australian |pound |was |issues |as |the |Legal |tender |in |Australia |and |the |Australian |Notes |act |
1910 |assigned |responsibility |for |the |issue |of |Bank |notes |to |the |Commonwealth |Treasury.



What |events |occurred |in |1911-1913 |in |the |Banking |Industry? |- |CORRECT |ANSWER✔✔-Federal |
government |established |the |Commonwealth |Bank, |which |by |1913 |had |branches |in |6 |states.



What |events |occurred |in |1920 |in |the |Banking |Industry? |- |CORRECT |ANSWER✔✔-
Commonwealth |performed |some |central |Bank |functions, |which |greatly |expanded |in |World |
War |II.



What |events |occurred |in |1930-1931 |in |the |Banking |Industry? |- |CORRECT |ANSWER✔✔-1931 |- |
The |Great |Depression, |By |the |end |Banking |Industry |became |tightly |regulated. |Banks |classified |
as |either |savings |or |trading |Banks.



What |events |occurred |in |1990-2000 |in |the |Banking |Industry? |- |CORRECT |ANSWER✔✔-
14/01/1960 |- |Reserve |Bank |of |Australia |was |created

,1969 |- |Rolled |out |ATMs, |and |early |1970 |BSB |identifier |was |introduced.



What |events |occurred |in |2000-2017 |in |the |Banking |Industry? |- |CORRECT |ANSWER✔✔-
Renewed |emphasis |on |corporate |governance, |values, |ethics. |Jan |17 |- |Better |Banking |program |
launched |with |initiatives: |

- |Independent |review |of |retail |Banking |remuneration |and |how |we |pay |staff. |

- |Getting |problems |fixed

- |Protecting |whistle-blowers |

- |Stopping |poor |conduct, |and |review |of |code |of |Banking |practise



What |are |other |Finance |service |providers? |

Authorised |Deposit-Taking |Institutions |(ADI's) |- |CORRECT |ANSWER✔✔-Building |Societies: |

Credit |Unions:



What |is |a |Building |Society? |- |CORRECT |ANSWER✔✔-A |mutual |institution, |which |means |that |
most |people |who |have |a |savings |account, |or |mortgage |are |members. |Each |building |society |
and |are |responsible |for |setting |its |strategy. |

- |Owner |by |and |for |the |members

- |Limit |on |proportion |of |their |funds |that |building |societies |can |raise |from |wholesale |money |
market |

- |Reinvest |surplus |revenue |into |the |business |to |provide |new |products |and |services.



What |is |a |credit |union? |- |CORRECT |ANSWER✔✔-a |non-profit-making |money |cooperative |
whose |members |can |borrow |from |pooled |deposits |at |low |interest |rates.



What |are |non-ADI's |financial |intermediaries? |- |CORRECT |ANSWER✔✔-- |Money |Markets |
Corporations |

- |Finance |Companies |

,- |Securitisation |Vehicles



What |are |the |4 |types |of |financial |markets |- |CORRECT |ANSWER✔✔-1. |Primary |Markets

2. |Secondary |Market |

3. |Exchange |Traded |Markets |

4. |Over |the |counter |markets



What |is |the |Interest |rate |or |Debt |market. |- |CORRECT |ANSWER✔✔-Trading |(Buying |and |Selling)
|includes |shart |term |securities |and |long |term |securities |such |as |government |and |corporate |


bonds.



What |is |the |Foreign |Exchange |Market? |- |CORRECT |ANSWER✔✔-Exchanging |one |currency |for |
another. |Largest |financial |market |in |the |World |and |24 |hours |a |day.



Trading |shared |in |listed |companies |- |CORRECT |ANSWER✔✔-What |is |the |equities |market?



What |is |the |Commodities |Market? |- |CORRECT |ANSWER✔✔-Trading |in |raw |or |primary |products
|such |as |wheat, |grain, |cattle., |or |electricity.




What |is |the |Derivatives |Market? |- |CORRECT |ANSWER✔✔-A |contract |whose |value |is |derived |
from |one |or |more |underlining |assets |or |instruments; |for |example, |forward |rate |agreements |or
|underlying |exchange |rates.




What |is |microeconomics? |- |CORRECT |ANSWER✔✔-the |study |of |how |households |and |firms |
make |decisions |and |how |they |interact |in |markets. |Supply |and |demand |that |impact |the |price |
levels |in |the |economy. |Taxes |and |Regulation |created |by |governments.



What |is |macroeconomics? |- |CORRECT |ANSWER✔✔-The |study |of |the |economy |as |a |whole

- |Unemployment |rates

, - |Gross |Domestic |Product |- |GDP

- |Inflation |

- |Export |and |Imports



What |are |the |Australian |Economy |Facts |and |Figures |- |CORRECT |ANSWER✔✔-14th |Largest |
economy |measured |by |GDP |1.99 |Trillon |- |2019

- Australian |Labour |force |12.3 |millions |June |2020
| |



- |Low |levels |of |inflation |2% |July |2020

- Unemployment |rate |7%
| |




What |is |Fiscal |Policy? |- |CORRECT |ANSWER✔✔-Government |spending |and |taxation |that |
influences |the |economy.



What |is |the |Monetary |Policy |- |CORRECT |ANSWER✔✔-RBA |is |responsible |for |Australians |
monetary |policy |- |aims |to |protect |price |stability |full |employment |and |economic |prosperity.



What |events |occurred |in |1980's |in |the |Banking |Industry? |- |CORRECT |ANSWER✔✔-Government
|adopted |the |four |pillars |policy. |Announced |it |would |reject |any |mergers |between |the |Big |4 |


Banks. |

- |NAB

- |CBA

- |Westpac

- |ANZ



What |is |the |role |of |the |Bank? |- |CORRECT |ANSWER✔✔-1. |Act |as |a |financial |intermediary |
between |savers |& |borrowers.

2. |Contributes |to |the |development |of |the |economy