CQIB CORE EXAMS SET 2025/2026 QUESTIONS WITH
ANSWERS RATED A+
✔✔Q50 - Which of the following key components are assessable when credit scoring is
undertaken?
a) age
b) employment stability
c) residence stability
d) (b) and (c) - ✔✔d) (b) and (c)
✔✔Q51 - Basel II 2007 included:
a) Global framework for bank liquidity
b) Improvements to market discipline by requiring firms to publish certain details of
risks, capital and risk management
c) Liquidity coverage ratio(LCR)
d) All of the above - ✔✔b) Improvements to market discipline by requiring firms to
publish certain details of risks, capital and risk management
✔✔Q52 - How many days prior to the policy renewal date must an insurer tell the policy
holder whether it is prepared to renew the contract?
a) 14
b) 28
c) 10
d) 21 - ✔✔a) 14
✔✔Q53 - ___________________ are the foundation of the Carroll's Social
Responsibility Pyramid
a) Ethical Responsibilities
b) Legal Responsibilities
c) Philanthropic Responsibilities
d) Economic Responsibilities - ✔✔d) Economic Responsibilities
✔✔Q54 - Who holds the responsibility for overall stability of the Australian financial
system?
A) APRA
b) ASIC
c) Treasury
d) RBA - ✔✔d) RBA
✔✔Q55 - Is the bank the Mortgagee or Mortgagor
,a) Mortgagee
b) Mortgagor - ✔✔a) Mortgagee
✔✔Q56 - Which of the following is correct in respect of 'vulnerable' customers?
a) Paul, who currently cares for his infirm father, will not be considered as being
vulnerable
b) All armed forces personnel are generally regarded as being vulnerable
c) Eva, who has just been divorced, will not be considered as being vulnerable
d) Kevin, who has just been released from Prison, may be considered to be vulnerable -
✔✔d) Kevin, who has just been released from Prison, may be considered to be
vulnerable
✔✔Q57 - Which of the following is NOT one of the six key underlying principles for the
financial services industry from Commissioner Hayne:
a) Act fairly
b) Obey the law
c) Provide services that meet customer needs
d) Deliver services with reasonable care and skill - ✔✔c) Provide services that meet
customer needs
✔✔Q58 - Which of the following is NOT a principle of responsible banking put forward
by UNEP?
a) Alignment
b) Impact and Target Setting
c) Corporate Social Responsibility
d) Governance and Culture - ✔✔c) Corporate Social Responsibility
✔✔Q59 - What is underwriting?
a) the process of balancing accounting books at the end of the financial year
b) the process by which an insurer determines whether or not, and what basis, to accept
a particular risk
c) the process of selling insurance products to customers
,d) the process of evaluating how much to insure a customer for to ensure the insurance
pool remains liquid - ✔✔b) the process by which an insurer determines whether or not,
and what basis, to accept a particular risk
✔✔Q60 - Sarah has a $100,000 loan and chooses a fluctuating interest rate and the
capacity to make additional repayments over the life of the loan. What type of interest
rate is Sara applying to the loan?
a) Fixed
b) Hybrid
c) Variable
d) Honeymoon - ✔✔c) Variable
✔✔Q1 - (CH1) What Economic Key Indicator is an indicator of Consumption?
a) Balance of payments
b) Consumer price index
c) Net foreign debt
d) Retail sales - ✔✔d) Retail sales
✔✔Q2 - (CH4) Insurance businesses are required to:
a) Obtain APRA's approval to carry on an insurance business
b) Comply with regulations set by APRA
c) Report all regulatory breaches to APRA
d) All of the above - ✔✔d) All of the above
✔✔Q3 - (CH6) When is a loan Non-NCCP regulated?
a) Home loan to purchase residential property for primary residence
b) Loans in the name of a company
c) A young couple wishing to purchase an investment property
d) Home loan provided to renovate a residential home - ✔✔b) Loans in the name of a
company
✔✔Q4 - (CH2)Ethics is not the same as compliance
a) True
b) False - ✔✔a) True
✔✔Q5 - (CH3) What is not a characteristic of a Company?
a) Separate Legal Entity
b) Must be registered with ASIC
c) Business Operations are controlled by Directors and owned by Shareholders
, d) Business losses can be offset against personal income - ✔✔d) Business losses can
be offset against personal income
✔✔Q7 - (CH6) What is the term considered for a long-term loan?
A) Up to 12 months
b) Up to 30 years
c) Up to 50 years
d) Up to 5 years - ✔✔b) Up to 30 years
✔✔Q6 - (CH5)Which of the following is not part of a Banks complaints handing
procedure?
a) Automated response
B) Allow complaints to be made by any reasonable means
c) Be effective and transparent
d) Recognise complaints as requiring resolution - ✔✔a) Automated response
✔✔Q8 - (CH4) "This policy says the policy owner in the event of life insured dying within
the term of the contract" This statement defines which type of insurance?
a) Total and permanent disability insurance
b) Income protection insurance
c) Life insurance
d) Trauma insurance - ✔✔c) Life insurance
✔✔Q9 - (CH5) Which would be considered factual advice only?
a) Providing a customer an insurance quote
b) Providing a customer with an estimate of how much insurance is appropriate
c) Recommending an account that will generate a higher interest return because of
regular deposits that has been discussed with the customer
d) You recommend a product based on account activity - ✔✔a) Providing a customer an
insurance quote
✔✔Q10 - (CH6) What is correct in regards to regulated loans?
A) A charge is made for providing the credit
b) The lender is in the business of providing credit
c) The credit is provided
ANSWERS RATED A+
✔✔Q50 - Which of the following key components are assessable when credit scoring is
undertaken?
a) age
b) employment stability
c) residence stability
d) (b) and (c) - ✔✔d) (b) and (c)
✔✔Q51 - Basel II 2007 included:
a) Global framework for bank liquidity
b) Improvements to market discipline by requiring firms to publish certain details of
risks, capital and risk management
c) Liquidity coverage ratio(LCR)
d) All of the above - ✔✔b) Improvements to market discipline by requiring firms to
publish certain details of risks, capital and risk management
✔✔Q52 - How many days prior to the policy renewal date must an insurer tell the policy
holder whether it is prepared to renew the contract?
a) 14
b) 28
c) 10
d) 21 - ✔✔a) 14
✔✔Q53 - ___________________ are the foundation of the Carroll's Social
Responsibility Pyramid
a) Ethical Responsibilities
b) Legal Responsibilities
c) Philanthropic Responsibilities
d) Economic Responsibilities - ✔✔d) Economic Responsibilities
✔✔Q54 - Who holds the responsibility for overall stability of the Australian financial
system?
A) APRA
b) ASIC
c) Treasury
d) RBA - ✔✔d) RBA
✔✔Q55 - Is the bank the Mortgagee or Mortgagor
,a) Mortgagee
b) Mortgagor - ✔✔a) Mortgagee
✔✔Q56 - Which of the following is correct in respect of 'vulnerable' customers?
a) Paul, who currently cares for his infirm father, will not be considered as being
vulnerable
b) All armed forces personnel are generally regarded as being vulnerable
c) Eva, who has just been divorced, will not be considered as being vulnerable
d) Kevin, who has just been released from Prison, may be considered to be vulnerable -
✔✔d) Kevin, who has just been released from Prison, may be considered to be
vulnerable
✔✔Q57 - Which of the following is NOT one of the six key underlying principles for the
financial services industry from Commissioner Hayne:
a) Act fairly
b) Obey the law
c) Provide services that meet customer needs
d) Deliver services with reasonable care and skill - ✔✔c) Provide services that meet
customer needs
✔✔Q58 - Which of the following is NOT a principle of responsible banking put forward
by UNEP?
a) Alignment
b) Impact and Target Setting
c) Corporate Social Responsibility
d) Governance and Culture - ✔✔c) Corporate Social Responsibility
✔✔Q59 - What is underwriting?
a) the process of balancing accounting books at the end of the financial year
b) the process by which an insurer determines whether or not, and what basis, to accept
a particular risk
c) the process of selling insurance products to customers
,d) the process of evaluating how much to insure a customer for to ensure the insurance
pool remains liquid - ✔✔b) the process by which an insurer determines whether or not,
and what basis, to accept a particular risk
✔✔Q60 - Sarah has a $100,000 loan and chooses a fluctuating interest rate and the
capacity to make additional repayments over the life of the loan. What type of interest
rate is Sara applying to the loan?
a) Fixed
b) Hybrid
c) Variable
d) Honeymoon - ✔✔c) Variable
✔✔Q1 - (CH1) What Economic Key Indicator is an indicator of Consumption?
a) Balance of payments
b) Consumer price index
c) Net foreign debt
d) Retail sales - ✔✔d) Retail sales
✔✔Q2 - (CH4) Insurance businesses are required to:
a) Obtain APRA's approval to carry on an insurance business
b) Comply with regulations set by APRA
c) Report all regulatory breaches to APRA
d) All of the above - ✔✔d) All of the above
✔✔Q3 - (CH6) When is a loan Non-NCCP regulated?
a) Home loan to purchase residential property for primary residence
b) Loans in the name of a company
c) A young couple wishing to purchase an investment property
d) Home loan provided to renovate a residential home - ✔✔b) Loans in the name of a
company
✔✔Q4 - (CH2)Ethics is not the same as compliance
a) True
b) False - ✔✔a) True
✔✔Q5 - (CH3) What is not a characteristic of a Company?
a) Separate Legal Entity
b) Must be registered with ASIC
c) Business Operations are controlled by Directors and owned by Shareholders
, d) Business losses can be offset against personal income - ✔✔d) Business losses can
be offset against personal income
✔✔Q7 - (CH6) What is the term considered for a long-term loan?
A) Up to 12 months
b) Up to 30 years
c) Up to 50 years
d) Up to 5 years - ✔✔b) Up to 30 years
✔✔Q6 - (CH5)Which of the following is not part of a Banks complaints handing
procedure?
a) Automated response
B) Allow complaints to be made by any reasonable means
c) Be effective and transparent
d) Recognise complaints as requiring resolution - ✔✔a) Automated response
✔✔Q8 - (CH4) "This policy says the policy owner in the event of life insured dying within
the term of the contract" This statement defines which type of insurance?
a) Total and permanent disability insurance
b) Income protection insurance
c) Life insurance
d) Trauma insurance - ✔✔c) Life insurance
✔✔Q9 - (CH5) Which would be considered factual advice only?
a) Providing a customer an insurance quote
b) Providing a customer with an estimate of how much insurance is appropriate
c) Recommending an account that will generate a higher interest return because of
regular deposits that has been discussed with the customer
d) You recommend a product based on account activity - ✔✔a) Providing a customer an
insurance quote
✔✔Q10 - (CH6) What is correct in regards to regulated loans?
A) A charge is made for providing the credit
b) The lender is in the business of providing credit
c) The credit is provided
