CQIB EXAM 2026 ACTUAL SCRIPT WITH
ACCURATE ANSWERS GRADED A+
◉What type of loans have taxation benefits that make them a
popular funding option.. Answer: Equipment leasing and hire
purchase
◉What are Bills of exchange and promissory notes. Answer: Bills of
exchange and promissory notes are 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 1s presented to the borrower and the full amount is
collected.
◉What is Trade finance?. Answer: Trade finance assists in
facilitating import and export transactions including lending, letters
of credit, factoring (accounts receivable financing), export credit and
insurance.
◉What are some of the ways banks facilitate payments. Answer:
Electronic Funds Transfers - Where funds
are transferred electronically between banks
,Negotiable Instruments - Such as bank drafts, cheques and letters of
credit.
Periodic Payments - Direct debits and standing orders, where the
bank makes periodic payments on behalf of the customer
Periodic Collections Direct credits, where the bank collects periodic
payments on behalf of the customer for say, salary, pension,
dividends etc.
Debit Cards - Allows purchase of goods and services and deducts
money directly from the customers bank account (no credit
provided).
International Money Transfers - Allows customers to transfer money
to overseas bank accounts.
E-commerce Payment Systems for Merchants - Businesses can
accept electronic payments via credit card and EFTPOS into their
account, with settlement on the same day.
◉Do banks offer Insurance & Why. Answer: Many banks offer
insurance as part of their products and services. Depending on what
is being insured against, the insurer agrees to pay money to help
cover costs should certain events occur. This is called a "transfer of
, risk" because the insurer is taking the risk of meeting the cost of the
loss.
◉Wealth Management Products and Services. Answer: - Allocated
Pension
- Managed Funds and Superannuation
- Annuity
- Investment Growth Bond.
◉What are the revenue sources for Banks.. Answer: 1 Lending
money at rates higher than they pay for deposits. The difference is
the spread or the net interest income, and when the bank's earning
assets divide that net interest income, it is the net interest margin
2 Charging fees for products and services such as loans, deposit and
payment services, as well as other services such as travellers'
cheques or foreign exchange fees
◉What is the difference between lending rates and deposit rates
called. HINT: There are 2 names.. Answer: Spread OR Net Interest
Income.
◉How is net interest margin calculated?. Answer: Net Interest
Income (Spread between lending & deposit rates) / The banks
earning assets.
ACCURATE ANSWERS GRADED A+
◉What type of loans have taxation benefits that make them a
popular funding option.. Answer: Equipment leasing and hire
purchase
◉What are Bills of exchange and promissory notes. Answer: Bills of
exchange and promissory notes are 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 1s presented to the borrower and the full amount is
collected.
◉What is Trade finance?. Answer: Trade finance assists in
facilitating import and export transactions including lending, letters
of credit, factoring (accounts receivable financing), export credit and
insurance.
◉What are some of the ways banks facilitate payments. Answer:
Electronic Funds Transfers - Where funds
are transferred electronically between banks
,Negotiable Instruments - Such as bank drafts, cheques and letters of
credit.
Periodic Payments - Direct debits and standing orders, where the
bank makes periodic payments on behalf of the customer
Periodic Collections Direct credits, where the bank collects periodic
payments on behalf of the customer for say, salary, pension,
dividends etc.
Debit Cards - Allows purchase of goods and services and deducts
money directly from the customers bank account (no credit
provided).
International Money Transfers - Allows customers to transfer money
to overseas bank accounts.
E-commerce Payment Systems for Merchants - Businesses can
accept electronic payments via credit card and EFTPOS into their
account, with settlement on the same day.
◉Do banks offer Insurance & Why. Answer: Many banks offer
insurance as part of their products and services. Depending on what
is being insured against, the insurer agrees to pay money to help
cover costs should certain events occur. This is called a "transfer of
, risk" because the insurer is taking the risk of meeting the cost of the
loss.
◉Wealth Management Products and Services. Answer: - Allocated
Pension
- Managed Funds and Superannuation
- Annuity
- Investment Growth Bond.
◉What are the revenue sources for Banks.. Answer: 1 Lending
money at rates higher than they pay for deposits. The difference is
the spread or the net interest income, and when the bank's earning
assets divide that net interest income, it is the net interest margin
2 Charging fees for products and services such as loans, deposit and
payment services, as well as other services such as travellers'
cheques or foreign exchange fees
◉What is the difference between lending rates and deposit rates
called. HINT: There are 2 names.. Answer: Spread OR Net Interest
Income.
◉How is net interest margin calculated?. Answer: Net Interest
Income (Spread between lending & deposit rates) / The banks
earning assets.
