CQIB CERTIFICATION TEST PAPER 2026
FULL QUESTIONS AND CORRECT ANSWERS
GRADED A+
●● Debt Capital Markets. 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. 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. 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. 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. 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. 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
, ●● Bills of exchange and promissory notes. Answer: Specialised
instruments, being an unconditional order in
writing between parties, where the bank purchases the bill amount from
the borrower, deducting charges.
On maturity the bill is presented to the borrower and the full amount is
collected.
●● Equipment leasing and hire purchase. Answer: Common forms of
borrowing for the financing of plant,
machinery and vehicles by individuals and businesses.
Taxation benefits are often linked to these forms of debt, making them
popular funding options.
●● Trade finance. Answer: Facilitating import and export transactions
including lending, letters of credit, factoring (accounts receivable
financing), export credit and insurance.
●● Insurance. Answer: Many banks offer insurance as part of their
products and services. Depending on what is
being insured against, the insurer agrees to pay money to help cover
costs should certain
FULL QUESTIONS AND CORRECT ANSWERS
GRADED A+
●● Debt Capital Markets. 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. 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. 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. 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. 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. 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
, ●● Bills of exchange and promissory notes. Answer: Specialised
instruments, being an unconditional order in
writing between parties, where the bank purchases the bill amount from
the borrower, deducting charges.
On maturity the bill is presented to the borrower and the full amount is
collected.
●● Equipment leasing and hire purchase. Answer: Common forms of
borrowing for the financing of plant,
machinery and vehicles by individuals and businesses.
Taxation benefits are often linked to these forms of debt, making them
popular funding options.
●● Trade finance. Answer: Facilitating import and export transactions
including lending, letters of credit, factoring (accounts receivable
financing), export credit and insurance.
●● Insurance. Answer: Many banks offer insurance as part of their
products and services. Depending on what is
being insured against, the insurer agrees to pay money to help cover
costs should certain
