CQIB FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS
Role |of |Banks |- |CORRECT |ANSWER✔✔-1. |Act |as |financial |intermediary |between |savers |and |
borrowers.
2. |Facilitates |the |creation |of |money.
3. |Creates |financial |products |and |services.
4. |Develops |mechanisms |for |transferring |money |and |making |payments.
5. |Contributes |to |the |development |of |the |economy.
Debt |Capital |Markets |- |CORRECT |ANSWER✔✔-When |a |large |company |or |government |wants |to
|finance |a |project, |it |may |look |to |issue |bonds |to |raise |capital. |
An |Investment |bank |would |help |out |in |planning/documentation |of |bond |issuance.
Equity |Capital |Markets |- |CORRECT |ANSWER✔✔-When |a |company |needs |more |money |in |order
|to |grow, |they |may |look |at |undertaking |an |initial |public |offering(IPO). |Where |it |sells |it's |shares |
to |the |public/investors.
The |investment |bank |will |put |together |a |prospectus |explaining |the |terms |of |the
offering |and |the |risks |it |carries, |managing |the |issuance |process |and |helping |the |price |of |the |
offering.
, Private |Placements |- |CORRECT |ANSWER✔✔-Where |customers |plan |an |offering |of |bonds |with |
an |institutional |investor |such |as
an |insurance |company |or |a |retirement |fund.
Can |have |be |a |quicker |option |as |there |is |lower |regulatory |requirements.
Mergers |and |Acquisitions |- |CORRECT |ANSWER✔✔-Where |a |company |is |looking |to |buy |
another |company, |investment |banks |offer
advice |on |how |the |company |should |proceed |with |the |acquisition, |including |the |pricing |of |the |
offer.
Deposits |for |a |Bank |- |CORRECT |ANSWER✔✔-Banks |source |their |funds |largely |from |deposits.
Savings |deposits |- |wages |and |salary.
Fixed |term |deposits |- |lump |sum |deposited |for |a |specific |period.
Current |deposits |- |business |accounts.
Types |of |Bank |Loans |- |CORRECT |ANSWER✔✔-1. |Overdraft |
2. |Credit |card
3. |Short |term |money |loans
4. |Long |term |loans
5. |Bills |of |exchange |and |promissory |notes
6. |Equipment |leasing |and |hire |purchase
7. |Trade |finance
CORRECT ANSWERS
Role |of |Banks |- |CORRECT |ANSWER✔✔-1. |Act |as |financial |intermediary |between |savers |and |
borrowers.
2. |Facilitates |the |creation |of |money.
3. |Creates |financial |products |and |services.
4. |Develops |mechanisms |for |transferring |money |and |making |payments.
5. |Contributes |to |the |development |of |the |economy.
Debt |Capital |Markets |- |CORRECT |ANSWER✔✔-When |a |large |company |or |government |wants |to
|finance |a |project, |it |may |look |to |issue |bonds |to |raise |capital. |
An |Investment |bank |would |help |out |in |planning/documentation |of |bond |issuance.
Equity |Capital |Markets |- |CORRECT |ANSWER✔✔-When |a |company |needs |more |money |in |order
|to |grow, |they |may |look |at |undertaking |an |initial |public |offering(IPO). |Where |it |sells |it's |shares |
to |the |public/investors.
The |investment |bank |will |put |together |a |prospectus |explaining |the |terms |of |the
offering |and |the |risks |it |carries, |managing |the |issuance |process |and |helping |the |price |of |the |
offering.
, Private |Placements |- |CORRECT |ANSWER✔✔-Where |customers |plan |an |offering |of |bonds |with |
an |institutional |investor |such |as
an |insurance |company |or |a |retirement |fund.
Can |have |be |a |quicker |option |as |there |is |lower |regulatory |requirements.
Mergers |and |Acquisitions |- |CORRECT |ANSWER✔✔-Where |a |company |is |looking |to |buy |
another |company, |investment |banks |offer
advice |on |how |the |company |should |proceed |with |the |acquisition, |including |the |pricing |of |the |
offer.
Deposits |for |a |Bank |- |CORRECT |ANSWER✔✔-Banks |source |their |funds |largely |from |deposits.
Savings |deposits |- |wages |and |salary.
Fixed |term |deposits |- |lump |sum |deposited |for |a |specific |period.
Current |deposits |- |business |accounts.
Types |of |Bank |Loans |- |CORRECT |ANSWER✔✔-1. |Overdraft |
2. |Credit |card
3. |Short |term |money |loans
4. |Long |term |loans
5. |Bills |of |exchange |and |promissory |notes
6. |Equipment |leasing |and |hire |purchase
7. |Trade |finance
