1|Page
CQIB All Possible Questions and Answers
with complete solution
Mutually owned co-operative financial institutions offering
benefits to members through a trust-like structure" describes
which type of Insurer/Fund Manager?
Friendly Society
Which is the decision-making process of framing?
To remove the 'noise' from an issue to allow us to see the problem for
what it is
Under the RG271 what is the maximum timeframes for IDR
response for a Superannuation trustee complaints?
45 days after receiving the complaint
In the second line of defence, the Risk and Control Functions
include:
1. Provide guidance and direction
2. Review and challenge risk management processes
When recording all information about a particular ethical
dilemma, it's essential to critically analyse the value judgements
being made by each person involved as they record their version
of events" What step of the five-step ethical decision model is this
statement referring to
Step One - Recognise
Who is NOT a price taker
1. Banks and NBFI's
2. Brokers who act as intermediaries
What is the 5-step process for Ethical Dilemmas?
Recognise, facts, Discuss, act, review
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What is the four-step process to follow when handing customer
complaints?
Empathise, gather facts, solution, verify
Samuel explains that the XYZ savings booster account has a
bonus interest rate and is a good choice for customers who want
a higher return on their account and do not need to access their
funds. What type of advice is Samuel providing?
General advice
What is "Chinese walls" ?
Information barriers within the organisation to prevent exchanges or
communication lead to conflicts of interest
What does AFCA stand for?
Australian Financial Complaints Authority
What step in the 5 Step Process for Resolving Ethical Decisions
is where you think about the issue and write everything down?
Recognise
Which of the regulatory bodies is the "lender of last resort"?
Reserve Bank of Australia
Under RG271 the maximum timeframe for Standard Complaint
must be:
No later than 30 calendar days after receiving the complaint
What is liquidity?
The Banks' ability to meet all expenses using only liquid assets
The Competition and Consumer Act (2010) covers anti-
competitive behaviour in which of the following areas:
1. Exclusive dealing
2. Collective bargaining
Which of the regulatory sought to improve executive
accountability in ADI's?
,3|Page
BEAR
Elliot works in the lending team at NAB. A client has come into
the bank and is threatening to take Elliot to court if he doesn't
approve his home loan before the end of the client's settlement
period. What is the chief threat to Elliot acting professionally in
this matter?
Intimidation
Stacey owns a hairdressing salon. Over the weekend, the store
next door had a chemical leak and Stacey and her team had to
vacate the premises for a week and couldn't work. Luckily, Stacey
had insurance to cover her. What type of policy did she rely on in
this scenario?
Business interruption
Which of the document is not a Responsible Lending Disclosure
Document?
Product Disclosure Document
Which of the following describes the risk associated with the
vulnerability of a line of business to changes in the business
environment?
Business risk
What is the role of the Reserve Bank of Australia (RBA)?
1. Overall stability of the financial system and regulation of the
payments system
2. Monetary policy
What are the 4 types of Financial Markets?
Primary market, secondary markets, exchange traded markets and
over the counter markets
Luke works at the ABC Bank Call Centre. A customer asks about
a new credit card, and Luke informs a customer about the interest
, 4|Page
rate charged, the annual fee and the rewards program. Luke is
providing which of the following?
Factual information
Banks & other NBFI's participate in the Financial markets as
______________
Price Makers
In which situations can a bank refuse to honour cheques?
1. A garnishee order is received
2. The drawer of the cheque declares bankruptcy
Downtown bank collapses and files for bankruptcy. It is one of the
major banks in its country, and its collapse has serious negative
impacts on the overall economy. This is an example of which type
of risk?
Macro-prudential risk
What are the four C's of Credit?
Character, Capacity, Collateral, Capital
The risk that problems arise in other internal business channels
which could compromise the financial and operational position of
the ADI is referred to as what type of Risk?
Contagion Risk
"Typically operated with a plastic card, mobile app or in a few
cases by passbook" and "level of interest rate varies depending
on both the balance of the account and the terms of the account"
best describe which account type?
Savings
Basel II 2007 included:
Improvements to market discipline by requiring firms to publish certain
details of risks, capital and risk management
CQIB All Possible Questions and Answers
with complete solution
Mutually owned co-operative financial institutions offering
benefits to members through a trust-like structure" describes
which type of Insurer/Fund Manager?
Friendly Society
Which is the decision-making process of framing?
To remove the 'noise' from an issue to allow us to see the problem for
what it is
Under the RG271 what is the maximum timeframes for IDR
response for a Superannuation trustee complaints?
45 days after receiving the complaint
In the second line of defence, the Risk and Control Functions
include:
1. Provide guidance and direction
2. Review and challenge risk management processes
When recording all information about a particular ethical
dilemma, it's essential to critically analyse the value judgements
being made by each person involved as they record their version
of events" What step of the five-step ethical decision model is this
statement referring to
Step One - Recognise
Who is NOT a price taker
1. Banks and NBFI's
2. Brokers who act as intermediaries
What is the 5-step process for Ethical Dilemmas?
Recognise, facts, Discuss, act, review
,2|Page
What is the four-step process to follow when handing customer
complaints?
Empathise, gather facts, solution, verify
Samuel explains that the XYZ savings booster account has a
bonus interest rate and is a good choice for customers who want
a higher return on their account and do not need to access their
funds. What type of advice is Samuel providing?
General advice
What is "Chinese walls" ?
Information barriers within the organisation to prevent exchanges or
communication lead to conflicts of interest
What does AFCA stand for?
Australian Financial Complaints Authority
What step in the 5 Step Process for Resolving Ethical Decisions
is where you think about the issue and write everything down?
Recognise
Which of the regulatory bodies is the "lender of last resort"?
Reserve Bank of Australia
Under RG271 the maximum timeframe for Standard Complaint
must be:
No later than 30 calendar days after receiving the complaint
What is liquidity?
The Banks' ability to meet all expenses using only liquid assets
The Competition and Consumer Act (2010) covers anti-
competitive behaviour in which of the following areas:
1. Exclusive dealing
2. Collective bargaining
Which of the regulatory sought to improve executive
accountability in ADI's?
,3|Page
BEAR
Elliot works in the lending team at NAB. A client has come into
the bank and is threatening to take Elliot to court if he doesn't
approve his home loan before the end of the client's settlement
period. What is the chief threat to Elliot acting professionally in
this matter?
Intimidation
Stacey owns a hairdressing salon. Over the weekend, the store
next door had a chemical leak and Stacey and her team had to
vacate the premises for a week and couldn't work. Luckily, Stacey
had insurance to cover her. What type of policy did she rely on in
this scenario?
Business interruption
Which of the document is not a Responsible Lending Disclosure
Document?
Product Disclosure Document
Which of the following describes the risk associated with the
vulnerability of a line of business to changes in the business
environment?
Business risk
What is the role of the Reserve Bank of Australia (RBA)?
1. Overall stability of the financial system and regulation of the
payments system
2. Monetary policy
What are the 4 types of Financial Markets?
Primary market, secondary markets, exchange traded markets and
over the counter markets
Luke works at the ABC Bank Call Centre. A customer asks about
a new credit card, and Luke informs a customer about the interest
, 4|Page
rate charged, the annual fee and the rewards program. Luke is
providing which of the following?
Factual information
Banks & other NBFI's participate in the Financial markets as
______________
Price Makers
In which situations can a bank refuse to honour cheques?
1. A garnishee order is received
2. The drawer of the cheque declares bankruptcy
Downtown bank collapses and files for bankruptcy. It is one of the
major banks in its country, and its collapse has serious negative
impacts on the overall economy. This is an example of which type
of risk?
Macro-prudential risk
What are the four C's of Credit?
Character, Capacity, Collateral, Capital
The risk that problems arise in other internal business channels
which could compromise the financial and operational position of
the ADI is referred to as what type of Risk?
Contagion Risk
"Typically operated with a plastic card, mobile app or in a few
cases by passbook" and "level of interest rate varies depending
on both the balance of the account and the terms of the account"
best describe which account type?
Savings
Basel II 2007 included:
Improvements to market discipline by requiring firms to publish certain
details of risks, capital and risk management
