CQIB EXAM 2025/2026 WITH 100% ACCURATE
QUESTIONS AND ANSWERS
1. What are the two new quantitative measures introduced by
Basel III liquidity reforms?
Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR)
Capital Adequacy Ratio (CAR) and Liquidity Coverage
Ratio (LCR)
Net Stable Funding Ratio (NSFR) and Capital Adequacy
Ratio (CAR)
Liquidity Coverage Ratio (LCR) and Debt-to-Equity Ratio
(DER)
2. What is the core principle of utilitarianism in ethical
decision- making?
An action is morally right if it is approved by the majority.
An action is morally right if it maximizes human well-
being.
An action is morally right if it aligns with personal beliefs.
An action is morally right if it adheres to established
laws.
,3. What is one of the key ethical principles outlined by the
Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry?
Maximize profits
Obey the law
Avoid transparency
Minimize customer service
4. In a scenario where a bank must decide whether to grant a
loan to a high-risk borrower, how would an Ethical Egoist
approach this decision?
The bank would follow regulatory guidelines without
considering its own interests.
The bank would prioritize the borrower's ability to repay
the loan over its own interests.
The bank would evaluate if granting the loan leads
to more favorable outcomes for its own interests.
The bank would consider the overall impact on the
community and society.
5. What is one of the primary roles of banks in the economy?
Provide insurance services.
Create government policies.
, Act as financial intermediary between savers and
borrowers.
Regulate stock markets.
6. What is the definition of credit risk in banking?
The chance of a bank failing to meet its capital adequacy
requirements.
The probability of loss due to a borrower's failure
to make payment on any type of debt.
The risk associated with fluctuations in interest
rates. The likelihood of a borrower receiving a
loan.
7. Describe the significance of Corporate Social Responsibility
(CSR) for banks in relation to their impact on society.
CSR is only relevant for non-profit organizations.
CSR is significant for banks as it guides their
operations to ensure they contribute positively to
society while
maintaining ethical standards.
CSR is primarily focused on maximizing profits for
shareholders.
CSR has no impact on a bank's regulatory compliance.
8. What are the three main types of deposits mentioned that
banks use to source their funds?
QUESTIONS AND ANSWERS
1. What are the two new quantitative measures introduced by
Basel III liquidity reforms?
Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR)
Capital Adequacy Ratio (CAR) and Liquidity Coverage
Ratio (LCR)
Net Stable Funding Ratio (NSFR) and Capital Adequacy
Ratio (CAR)
Liquidity Coverage Ratio (LCR) and Debt-to-Equity Ratio
(DER)
2. What is the core principle of utilitarianism in ethical
decision- making?
An action is morally right if it is approved by the majority.
An action is morally right if it maximizes human well-
being.
An action is morally right if it aligns with personal beliefs.
An action is morally right if it adheres to established
laws.
,3. What is one of the key ethical principles outlined by the
Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry?
Maximize profits
Obey the law
Avoid transparency
Minimize customer service
4. In a scenario where a bank must decide whether to grant a
loan to a high-risk borrower, how would an Ethical Egoist
approach this decision?
The bank would follow regulatory guidelines without
considering its own interests.
The bank would prioritize the borrower's ability to repay
the loan over its own interests.
The bank would evaluate if granting the loan leads
to more favorable outcomes for its own interests.
The bank would consider the overall impact on the
community and society.
5. What is one of the primary roles of banks in the economy?
Provide insurance services.
Create government policies.
, Act as financial intermediary between savers and
borrowers.
Regulate stock markets.
6. What is the definition of credit risk in banking?
The chance of a bank failing to meet its capital adequacy
requirements.
The probability of loss due to a borrower's failure
to make payment on any type of debt.
The risk associated with fluctuations in interest
rates. The likelihood of a borrower receiving a
loan.
7. Describe the significance of Corporate Social Responsibility
(CSR) for banks in relation to their impact on society.
CSR is only relevant for non-profit organizations.
CSR is significant for banks as it guides their
operations to ensure they contribute positively to
society while
maintaining ethical standards.
CSR is primarily focused on maximizing profits for
shareholders.
CSR has no impact on a bank's regulatory compliance.
8. What are the three main types of deposits mentioned that
banks use to source their funds?
