CBI EXAM QUICK NOTES UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

CBI EXAM QUICK NOTES UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS

Question:
1. what do customers want?
Answer:
utility and functionality

Question:
2. what is a bank?
Answer:
licensed by a regulatory or government authority to take deposits and lend money

Question:
3. what is a commercial bank?
Answer:
- serve retail and corporate customers
- take deposits and provide loans
- large ones engage in investment banking
- joint stock companies

Question:
4. what is a savings bank?
Answer:
- serve retail customers
- take deposits and provide loans
- mutually owned

Question:
5. what is mutual ownership?
Answer:
owners are the people who deposit and lend from the bank

Question:
6. what is a co-operative bank?
Answer:
- serve retail customers
- take deposits and provide loans
- originated as mutually owned
- trend for them to form larger banks and become publicly listed companies

Question:
7. what is a building society?

,Answer:
- mutually owned
- focus on retail deposit taking and mortgage lending

Question:
8. what is a credit union?
Answer:
- non-profit
- mutual ownership
- members pool together savings and lend to each other

Question:
9. what is a finance house?
Answer:
- only provide loans
- no deposits
- money to lend comes from investors

Question:
10. What type of bank/ financial service organisation is non-profit?
Answer:
credit union

Question:
11. What type of bank/ financial service organisation does not take deposits?
Answer:
finance house

Question:
12. what is a challenger bank?
Answer:
organisation challenging bigger banks in terms of driving innovation and attracting customers

Question:
13. what is an established, mid-sized bank?
Answer:
offers a full banking service through branches and digital channels but not at the scale of 'big' banks

Question:
14. what is a specialist bank?
Answer:
specialises in a particular segment of the market

Question:
15. what is a digital only bank?

,Answer:
- have a full banking license
- only accessible through a digital device

Question:
16. what is a neo-bank?
Answer:
- don't have their own license
- partner with banks who do

Question:
17. what is a non-bank?
Answer:
- no connection to a traditional bank license
- meet conditions to provide financials services

Question:
18. what is retail banking?
Answer:
retail (or personal) banking is about providing financial services to individuals.

Question:
19. what is private banking?
Answer:
- providing services to wealthy clients
- payment and account facilities plus investment related services tailored to clients needs

Question:
20. what is corporate banking?
Answer:
- providing services to large companies

Question:
21. what is wholesale banking?
Answer:
- borrowing and lending of money between large institutions
- usually between banks through the interbank market

Question:
22. what is investment banking?
Answer:
- advice to raise capital
- managing mergers/acquisitions
- buying and selling shares
- managing customer investment portfolios

, Question:
23. what is islamic banking?
Answer:
- banking services based on non-interest principles

Question:
24. what is international banking?
Answer:
- business conducted across borders or using different currencies

Question:
25. when is a bank considered international?
Answer:
- branches overseas
- uses foreign currency
- has international customers

Question:
26. what types of challenger banks are fintechs?
Answer:
digital, neo and non banks

Question:
27. how do fintechs challenge bigger banks?
Answer:
solving customers' problems and improving their banking experience

Question:
28. how can banks keep up with competitors?
Answer:
- replicate
- innovate
- collaborate

Question:
29. what is the main technology that facilitates open banking?
Answer:
open API's

Question:
30. what is an open API?
Answer:
allows one piece of software to interact with another piece of software

Question:
31. what is advanced analytics?