CQIB CERTIFICATION ACTUAL TEST SCRIPT
2026 VERIFIED QUESTIONS AND CORRECT
ANSWERS A+
●● Role of Banks. Answer: Acts as a financial intermediary between
savers and borrowers, which results in efficient use of pooled resources.
Facilitates the creation of money by expanding the supply of money
through deposit and loan transactions.
Creates financial products and services that benefits its customers.
Develops mechanisms for transferring money and making payments.
Contributes to the development of the economy
●● Investment Banking: what are Debt Capital Markets?. Answer: Large
Company or Government wants to raise capital by issuing bonds
An investment bank would be involved in planning the bond issuance,
working with the issuer to manage the documentation required to issue
the bonds, and help sell the bonds.
,The investment bank would buy the securities at one price and then add
on a markup in the sale price and thereby generate a profit that
compensates for the risk they take on. This difference is the underwriting
spread. A lead bank will normally work with a group of investment
banks, called a syndicate, to underwrite an issue so that the risk is spread
among others.
●● Investment Banking: A group of investment banks is called?.
Answer: Syndicate - A lead bank will normally work with a group of
investment banks, called a syndicate, to underwrite an issue so that the
risk is spread among others.
●● Investment Banking: What is underwritten spread?. Answer: The
investment bank would buy the securities at one price and then add on a
mark-up in the sale price and thereby generate a profit that compensates
for the risk they take on. This difference is the underwriting spread.
●● Investment Banking: What is Equity capital markets?. Answer:
Where a company needs more money to grow and decides to raise the
funds by undertaking an initial public offering (IPO). Whereby it sells its
shares to the public and a wider pool of
investors for the first time. 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.
●● Investment Banking: Private placements. Answer: Where customers
plan an offering of bonds with an institutional investor such as an
, insurance company or a retirement fund. Often this can be a fast track
option due to lower regulatory requirements.
●● Investment Banking: Mergers and acquisitions. 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.
Investment banks need to establish information barriers within the
organizations to prevent exchanges or communication that could lead to
conflict of interest.
●● Accepting Deposits: Banks source their funds largely from deposits
from the public? What are the 3 main types of public deposits. Answer:
Savings deposits (from salary and wage earners)
Fixed term deposits (lump sum deposited for a
specific period)
Current deposits (business accounts)
●● Granting Loans: List the types of bank loans and advances banks
grant.. Answer: Overdraft - An overdraft is a defined credit limit
attached to a bank account that can be drawn against. Interest is charged
on the overdrawn balance.
2026 VERIFIED QUESTIONS AND CORRECT
ANSWERS A+
●● Role of Banks. Answer: Acts as a financial intermediary between
savers and borrowers, which results in efficient use of pooled resources.
Facilitates the creation of money by expanding the supply of money
through deposit and loan transactions.
Creates financial products and services that benefits its customers.
Develops mechanisms for transferring money and making payments.
Contributes to the development of the economy
●● Investment Banking: what are Debt Capital Markets?. Answer: Large
Company or Government wants to raise capital by issuing bonds
An investment bank would be involved in planning the bond issuance,
working with the issuer to manage the documentation required to issue
the bonds, and help sell the bonds.
,The investment bank would buy the securities at one price and then add
on a markup in the sale price and thereby generate a profit that
compensates for the risk they take on. This difference is the underwriting
spread. A lead bank will normally work with a group of investment
banks, called a syndicate, to underwrite an issue so that the risk is spread
among others.
●● Investment Banking: A group of investment banks is called?.
Answer: Syndicate - A lead bank will normally work with a group of
investment banks, called a syndicate, to underwrite an issue so that the
risk is spread among others.
●● Investment Banking: What is underwritten spread?. Answer: The
investment bank would buy the securities at one price and then add on a
mark-up in the sale price and thereby generate a profit that compensates
for the risk they take on. This difference is the underwriting spread.
●● Investment Banking: What is Equity capital markets?. Answer:
Where a company needs more money to grow and decides to raise the
funds by undertaking an initial public offering (IPO). Whereby it sells its
shares to the public and a wider pool of
investors for the first time. 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.
●● Investment Banking: Private placements. Answer: Where customers
plan an offering of bonds with an institutional investor such as an
, insurance company or a retirement fund. Often this can be a fast track
option due to lower regulatory requirements.
●● Investment Banking: Mergers and acquisitions. 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.
Investment banks need to establish information barriers within the
organizations to prevent exchanges or communication that could lead to
conflict of interest.
●● Accepting Deposits: Banks source their funds largely from deposits
from the public? What are the 3 main types of public deposits. Answer:
Savings deposits (from salary and wage earners)
Fixed term deposits (lump sum deposited for a
specific period)
Current deposits (business accounts)
●● Granting Loans: List the types of bank loans and advances banks
grant.. Answer: Overdraft - An overdraft is a defined credit limit
attached to a bank account that can be drawn against. Interest is charged
on the overdrawn balance.
