CQIB EXAM LATEST
Which document/s must be provided prior to providing General Advice?
- ANSWERS-FSG and Product Disclosure Statement and General
Advice Warning
Sarah is asked by a customer "I am 25 and looking for a low interest rate
and great rewards. What credit card would you recommend?" Sarah
states "We offer two credit card products that suit your life stage, and
both have a strong rewards program. I recommend you look at both of
these products and apply them to your situation." Sarah is providing
which of the following? - ANSWERS-General financial advice
Which of the following describes the risk associated with the
vulnerability of a line of business to changes in the business
environment? - ANSWERS-Business risk
The risk that problems arise in other internal business channels which
could compromise the financial and operational position of the ADI is
referred to as what type of Risk? - ANSWERS-Related entity
(Contagion) Risk
Absolute risk is? - ANSWERS-There is either a chance of loss or no loss
END OF
PAGE
1
, CQIB EXAM LATEST
How is a risk score calculated? - ANSWERS-Combination of
probability/likelihood and consequence/impact
What is underwriting? - ANSWERS-The process by which an insurer
determines whether or not, and what basis, to accept a particular risk
A cheque will not be considered valid without which of the following? -
ANSWERS-1. Drawer signature
2. Monetary amount
3. Date
Which type of account is a tax-effective account that allows primary
producers to set aside pre-tax income as a cash reserve? - ANSWERS-
Farm management deposit account
What is liquidity risk? - ANSWERS-The potential inability of a bank to
meet its payment obligations in a timely and cost-effective manner
A bank's balance sheet comprises the following liabilities: - ANSWERS-
1. Share Capital
2. Debt Issues
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PAGE
2
, CQIB EXAM LATEST
3. Deposits
Net Stable Funding Ratio requires Australian ADI's to fund their assets
with sufficient stable funding to reduce funding risk over what time
period? - ANSWERS-One year horizon as prescribed by APRA
Which of the following are different types of commercial banks that
operate in Australia? - ANSWERS-Community banks, credit unions,
foreign owned banks, retail banks
Which regulator makes and enforces rules which govern the capital
adequacy of Australian Banks? - ANSWERS-The Australian Prudential
Regulation Authority - APRA
What events occurred in the Banking Industry in 1800s and early 1900s?
- ANSWERS-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.
END OF
PAGE
3
, CQIB EXAM LATEST
What events occurred in 1910-1920 in the Banking Industry? -
ANSWERS-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? -
ANSWERS-Federal government established the Commonwealth Bank,
which by 1913 had branches in 6 states.
What events occurred in 1920 in the Banking Industry? - ANSWERS-
Commonwealth performed some central Bank functions, which greatly
expanded in World War II.
What events occurred in 1930-1931 in the Banking Industry? -
ANSWERS-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? -
ANSWERS-14/01/1960 - Reserve Bank of Australia was created
1969 - Rolled out ATMs, and early 1970 BSB identifier was introduced.
END OF
PAGE
4
Which document/s must be provided prior to providing General Advice?
- ANSWERS-FSG and Product Disclosure Statement and General
Advice Warning
Sarah is asked by a customer "I am 25 and looking for a low interest rate
and great rewards. What credit card would you recommend?" Sarah
states "We offer two credit card products that suit your life stage, and
both have a strong rewards program. I recommend you look at both of
these products and apply them to your situation." Sarah is providing
which of the following? - ANSWERS-General financial advice
Which of the following describes the risk associated with the
vulnerability of a line of business to changes in the business
environment? - ANSWERS-Business risk
The risk that problems arise in other internal business channels which
could compromise the financial and operational position of the ADI is
referred to as what type of Risk? - ANSWERS-Related entity
(Contagion) Risk
Absolute risk is? - ANSWERS-There is either a chance of loss or no loss
END OF
PAGE
1
, CQIB EXAM LATEST
How is a risk score calculated? - ANSWERS-Combination of
probability/likelihood and consequence/impact
What is underwriting? - ANSWERS-The process by which an insurer
determines whether or not, and what basis, to accept a particular risk
A cheque will not be considered valid without which of the following? -
ANSWERS-1. Drawer signature
2. Monetary amount
3. Date
Which type of account is a tax-effective account that allows primary
producers to set aside pre-tax income as a cash reserve? - ANSWERS-
Farm management deposit account
What is liquidity risk? - ANSWERS-The potential inability of a bank to
meet its payment obligations in a timely and cost-effective manner
A bank's balance sheet comprises the following liabilities: - ANSWERS-
1. Share Capital
2. Debt Issues
END OF
PAGE
2
, CQIB EXAM LATEST
3. Deposits
Net Stable Funding Ratio requires Australian ADI's to fund their assets
with sufficient stable funding to reduce funding risk over what time
period? - ANSWERS-One year horizon as prescribed by APRA
Which of the following are different types of commercial banks that
operate in Australia? - ANSWERS-Community banks, credit unions,
foreign owned banks, retail banks
Which regulator makes and enforces rules which govern the capital
adequacy of Australian Banks? - ANSWERS-The Australian Prudential
Regulation Authority - APRA
What events occurred in the Banking Industry in 1800s and early 1900s?
- ANSWERS-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.
END OF
PAGE
3
, CQIB EXAM LATEST
What events occurred in 1910-1920 in the Banking Industry? -
ANSWERS-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? -
ANSWERS-Federal government established the Commonwealth Bank,
which by 1913 had branches in 6 states.
What events occurred in 1920 in the Banking Industry? - ANSWERS-
Commonwealth performed some central Bank functions, which greatly
expanded in World War II.
What events occurred in 1930-1931 in the Banking Industry? -
ANSWERS-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? -
ANSWERS-14/01/1960 - Reserve Bank of Australia was created
1969 - Rolled out ATMs, and early 1970 BSB identifier was introduced.
END OF
PAGE
4
