CQIB FINAL EXAM 2025/2026 EXAM
QUESTIONS AND ANSWERS | 100%
PASS
Role of Banks - 🧠 ANSWER ✔✔1. Act as financial intermediary between
savers and borrowers.
2. Facilitates the creation of money.
3. Creates financial products and services.
4. Develops mechanisms for transferring money and making payments.
5. Contributes to the development of the economy.
,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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
QUESTIONS AND ANSWERS | 100%
PASS
Role of Banks - 🧠 ANSWER ✔✔1. Act as financial intermediary between
savers and borrowers.
2. Facilitates the creation of money.
3. Creates financial products and services.
4. Develops mechanisms for transferring money and making payments.
5. Contributes to the development of the economy.
,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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
