Professional Banker Certificate chapter 1
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Bank - CORRECT ANSWER - Comes from Italian word banco meaning bench or table
Oldest bank - CORRECT ANSWER - Monte dei Paschi di Siena 1472
First sort of banking - CORRECT ANSWER - 18th century BC in ancient Mesopotamia
Commercial banking - CORRECT ANSWER - taking deposits and making loans
Taking deposits - CORRECT ANSWER - effectively borrowing money from the depositor
because it is based on the condition that the money can be returned on demand
Retail banking - CORRECT ANSWER - Taking deposits from individuals through a range
of delivery channels
Business banking - CORRECT ANSWER - Taking deposits from small or medium sized
enterprises
Wholesale banking - CORRECT ANSWER - Borrowing from and lending to large
corporate clients, other financial institutions, public agencies, and governments
Investment banking - CORRECT ANSWER - Providing advice, managing corporate
mergers and acquisitions, buying and selling shares, managing customers investments and share
portfolios
, Bank's creditors - CORRECT ANSWER - Customers who deposit money are the banks ---
----, because the bank is effectively borrowing their money
Bank's Debtors - CORRECT ANSWER - Customers to whom the bank lends money are
the bank's ------, because these customers owe them the money they have borrowed
intermediary - CORRECT ANSWER - the bank functions as a financial intermediary
between borrowers and savers
financial intermediary - CORRECT ANSWER - process of pooling funds from different
sources and using these to provide loans and make investments
Bancassurance - CORRECT ANSWER - The development of insurance and life assurance
provision by banks
Bancassurers - CORRECT ANSWER - Insurance companies that are subsidiaries of banks
and building societies and whose primary market is the customer base of the bank
Commercial operation - CORRECT ANSWER - they are banks operated as companies to
generate profit for shareholders, they make money by dealing in money
How banks make money - CORRECT ANSWER - Lending money and charging interest,
charging fees for products and investing the money deposited by savers
Liquidity - CORRECT ANSWER - Ability of a debtor to pay their debts as they fall due
Notes and Coins - CORRECT ANSWER - physical cash held in tills, branch safes and
cash machines
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Bank - CORRECT ANSWER - Comes from Italian word banco meaning bench or table
Oldest bank - CORRECT ANSWER - Monte dei Paschi di Siena 1472
First sort of banking - CORRECT ANSWER - 18th century BC in ancient Mesopotamia
Commercial banking - CORRECT ANSWER - taking deposits and making loans
Taking deposits - CORRECT ANSWER - effectively borrowing money from the depositor
because it is based on the condition that the money can be returned on demand
Retail banking - CORRECT ANSWER - Taking deposits from individuals through a range
of delivery channels
Business banking - CORRECT ANSWER - Taking deposits from small or medium sized
enterprises
Wholesale banking - CORRECT ANSWER - Borrowing from and lending to large
corporate clients, other financial institutions, public agencies, and governments
Investment banking - CORRECT ANSWER - Providing advice, managing corporate
mergers and acquisitions, buying and selling shares, managing customers investments and share
portfolios
, Bank's creditors - CORRECT ANSWER - Customers who deposit money are the banks ---
----, because the bank is effectively borrowing their money
Bank's Debtors - CORRECT ANSWER - Customers to whom the bank lends money are
the bank's ------, because these customers owe them the money they have borrowed
intermediary - CORRECT ANSWER - the bank functions as a financial intermediary
between borrowers and savers
financial intermediary - CORRECT ANSWER - process of pooling funds from different
sources and using these to provide loans and make investments
Bancassurance - CORRECT ANSWER - The development of insurance and life assurance
provision by banks
Bancassurers - CORRECT ANSWER - Insurance companies that are subsidiaries of banks
and building societies and whose primary market is the customer base of the bank
Commercial operation - CORRECT ANSWER - they are banks operated as companies to
generate profit for shareholders, they make money by dealing in money
How banks make money - CORRECT ANSWER - Lending money and charging interest,
charging fees for products and investing the money deposited by savers
Liquidity - CORRECT ANSWER - Ability of a debtor to pay their debts as they fall due
Notes and Coins - CORRECT ANSWER - physical cash held in tills, branch safes and
cash machines
