CQIB
Study online at https://quizlet.com/_c2cdv7
1. Mutually owned co-operative financial institutions offering benefits to mem-
bers through a trust-like structure" describes which type of Insurer/Fund
Manager?: Friendly Society
2. 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
3. Under the RG271 what is the maximum timeframes for IDR response for a
Superannuation trustee complaints?: 45 days after receiving the complaint
4. In the second line of defence, the Risk and Control Functions include:: 1.
Provide guidance and direction
2. Review and challenge risk management processes
5. When recording all information about a particular ethical dilemma, it's es-
sential 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
6. Who is NOT a price taker: 1. Banks and NBFI's
2. Brokers who act as intermediaries
7. What is the 5-step process for Ethical Dilemmas?: Recognise, facts, Discuss,
act, review
8. What is the four-step process to follow when handing customer com-
plaints?: Empathise, gather facts, solution, verify
9. 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
10. What is "Chinese walls" ?: Information barriers within the organisation to
prevent exchanges or communication lead to conflicts of interest
11. What does AFCA stand for?: Australian Financial Complaints Authority
12. What step in the 5 Step Process for Resolving Ethical Decisions is where
you think about the issue and write everything down?: Recognise
13. Which of the regulatory bodies is the "lender of last resort"?: Reserve Bank
of Australia
14. Under RG271 the maximum timeframe for Standard Complaint must be:: -
No later than 30 calendar days after receiving the complaint
15. What is liquidity?: The Banks' ability to meet all expenses using only liquid
assets
16. The Competition and Consumer Act (2010) covers anti-competitive behav-
iour in which of the following areas:: 1. Exclusive dealing
2. Collective bargaining
, CQIB
Study online at https://quizlet.com/_c2cdv7
17. Which of the regulatory sought to improve executive accountability in
ADI's?: BEAR
18. 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
19. 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
20. Which of the document is not a Responsible Lending Disclosure Docu-
ment?: Product Disclosure Document
21. Which of the following describes the risk associated with the vulnerability
of a line of business to changes in the business environment?: Business risk
22. 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
23. What are the 4 types of Financial Markets?: Primary market, secondary
markets, exchange traded markets and over the counter markets
24. Luke works at the ABC Bank Call Centre. A customer asks about a new
credit card, and Luke informs a customer about the interest rate charged,
the annual fee and the rewards program. Luke is providing which of the
following?: Factual information
25. Banks & other NBFI's participate in the Financial markets as
______________: Price Makers
26. In which situations can a bank refuse to honour cheques?: 1. A garnishee
order is received
2. The drawer of the cheque declares bankruptcy
27. 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
28. What are the four C's of Credit?: Character, Capacity, Collateral, Capital
29. 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
30. "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
, CQIB
Study online at https://quizlet.com/_c2cdv7
of the account and the terms of the account" best describe which account
type?: Savings
31. Basel II 2007 included:: Improvements to market discipline by requiring firms
to publish certain details of risks, capital and risk management
32. How many days prior to the policy renewal date must an insurer tell the
policy holder whether it is prepared to renew the contract?: 14
33. ___________________ are the foundation of the Carroll's Social Responsi-
bility Pyramid: Economic Responsibilities
34. Is the bank the Mortgagee or Mortgagor: Mortgagee
35. What is underwriting?: the process by which an insurer determines whether or
not, and what basis, to accept a particular risk
36. Sarah has a $100,000 loan and chooses a fluctuating interest rate and the
capacity to make additional repayments over the life of the loan. What type of
interest rate is Sara applying to the loan?: Variable
37. What does ABA stand for and what is it used for?: Australian Bankers'
Association provides analysis, advice and advocacy for the banking industry and
contributes to the development of public policy on banking and other financial
services.
38. What does ACCC stand for and what does it do?: The Australian Com-
petition and Consumer Commission (ACCC) is an independent authority of the
Australian government. Its mandate is to protect consumer rights, business rights
and obligations, perform industry regulation and price monitoring and prevent illegal
anti-competitive behaviour.
39. What does ACL stand for?: The Australian Consumer Law (ACL) includes
areas such as consumer rights when buying goods and services, contracts and
unsolicited consumer agreements covering door to door sales and telephone sales.
It is administered by the ACCC.
40. What is ADI? Examples?: Authorised deposit-taking institution comprising
banks, credit unions and building societies.
41. What is advocacy threat?: A threat to independence that arises when an
individual is asked to consider an action or take a decision in relation to a person or
entity they have previously supported.
42. Who is AFCA?: The Australian Financial Complaints Authority (AFCA) is sched-
uled to be introduced from July 2018 and designed as a one-stop-shop dispute
resolution scheme that will replace the SCT, CIO and FOS
43. What is AFSL?: The Australian Financial Services Licence (AFSL) is the licence
required to provide financial advice legally. Any organisation (or person), including
super funds, can't provide financial advice unless it holds an AFSL.
Study online at https://quizlet.com/_c2cdv7
1. Mutually owned co-operative financial institutions offering benefits to mem-
bers through a trust-like structure" describes which type of Insurer/Fund
Manager?: Friendly Society
2. 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
3. Under the RG271 what is the maximum timeframes for IDR response for a
Superannuation trustee complaints?: 45 days after receiving the complaint
4. In the second line of defence, the Risk and Control Functions include:: 1.
Provide guidance and direction
2. Review and challenge risk management processes
5. When recording all information about a particular ethical dilemma, it's es-
sential 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
6. Who is NOT a price taker: 1. Banks and NBFI's
2. Brokers who act as intermediaries
7. What is the 5-step process for Ethical Dilemmas?: Recognise, facts, Discuss,
act, review
8. What is the four-step process to follow when handing customer com-
plaints?: Empathise, gather facts, solution, verify
9. 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
10. What is "Chinese walls" ?: Information barriers within the organisation to
prevent exchanges or communication lead to conflicts of interest
11. What does AFCA stand for?: Australian Financial Complaints Authority
12. What step in the 5 Step Process for Resolving Ethical Decisions is where
you think about the issue and write everything down?: Recognise
13. Which of the regulatory bodies is the "lender of last resort"?: Reserve Bank
of Australia
14. Under RG271 the maximum timeframe for Standard Complaint must be:: -
No later than 30 calendar days after receiving the complaint
15. What is liquidity?: The Banks' ability to meet all expenses using only liquid
assets
16. The Competition and Consumer Act (2010) covers anti-competitive behav-
iour in which of the following areas:: 1. Exclusive dealing
2. Collective bargaining
, CQIB
Study online at https://quizlet.com/_c2cdv7
17. Which of the regulatory sought to improve executive accountability in
ADI's?: BEAR
18. 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
19. 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
20. Which of the document is not a Responsible Lending Disclosure Docu-
ment?: Product Disclosure Document
21. Which of the following describes the risk associated with the vulnerability
of a line of business to changes in the business environment?: Business risk
22. 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
23. What are the 4 types of Financial Markets?: Primary market, secondary
markets, exchange traded markets and over the counter markets
24. Luke works at the ABC Bank Call Centre. A customer asks about a new
credit card, and Luke informs a customer about the interest rate charged,
the annual fee and the rewards program. Luke is providing which of the
following?: Factual information
25. Banks & other NBFI's participate in the Financial markets as
______________: Price Makers
26. In which situations can a bank refuse to honour cheques?: 1. A garnishee
order is received
2. The drawer of the cheque declares bankruptcy
27. 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
28. What are the four C's of Credit?: Character, Capacity, Collateral, Capital
29. 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
30. "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
, CQIB
Study online at https://quizlet.com/_c2cdv7
of the account and the terms of the account" best describe which account
type?: Savings
31. Basel II 2007 included:: Improvements to market discipline by requiring firms
to publish certain details of risks, capital and risk management
32. How many days prior to the policy renewal date must an insurer tell the
policy holder whether it is prepared to renew the contract?: 14
33. ___________________ are the foundation of the Carroll's Social Responsi-
bility Pyramid: Economic Responsibilities
34. Is the bank the Mortgagee or Mortgagor: Mortgagee
35. What is underwriting?: the process by which an insurer determines whether or
not, and what basis, to accept a particular risk
36. Sarah has a $100,000 loan and chooses a fluctuating interest rate and the
capacity to make additional repayments over the life of the loan. What type of
interest rate is Sara applying to the loan?: Variable
37. What does ABA stand for and what is it used for?: Australian Bankers'
Association provides analysis, advice and advocacy for the banking industry and
contributes to the development of public policy on banking and other financial
services.
38. What does ACCC stand for and what does it do?: The Australian Com-
petition and Consumer Commission (ACCC) is an independent authority of the
Australian government. Its mandate is to protect consumer rights, business rights
and obligations, perform industry regulation and price monitoring and prevent illegal
anti-competitive behaviour.
39. What does ACL stand for?: The Australian Consumer Law (ACL) includes
areas such as consumer rights when buying goods and services, contracts and
unsolicited consumer agreements covering door to door sales and telephone sales.
It is administered by the ACCC.
40. What is ADI? Examples?: Authorised deposit-taking institution comprising
banks, credit unions and building societies.
41. What is advocacy threat?: A threat to independence that arises when an
individual is asked to consider an action or take a decision in relation to a person or
entity they have previously supported.
42. Who is AFCA?: The Australian Financial Complaints Authority (AFCA) is sched-
uled to be introduced from July 2018 and designed as a one-stop-shop dispute
resolution scheme that will replace the SCT, CIO and FOS
43. What is AFSL?: The Australian Financial Services Licence (AFSL) is the licence
required to provide financial advice legally. Any organisation (or person), including
super funds, can't provide financial advice unless it holds an AFSL.
