CQIB -PRACTICE QUESTIONS
Q2 - Select the answer that describes Consequentialism:
a) The study of what I should do.
b) It is in favour of universal rules that apply to everyone.
c) The right decision is the one achieving the best outcome with least harm.
d) It is opposed to universal rules.
c) The right decision is the one achieving the best outcome with least harm.
"Mutually owned co-operative financial institutions offering benefits to members through a trust-like
structure" describes which type of Insurer/Fund Manager?
a) Trustee Company
b) Cash Management Trust
c) Friendly Society
d) Approved Deposit Fund (ADF)
c) Friendly Society
Q3 - Confidentiality applies not to only account transactions, but also to all the information the bank
holds about the customer.
a) True
b) False
a) True
Q4 - Which of the following is NOT one of the six steps you should use to ensure you only provide
general advice to the customer?
a) Assessing your customers concerns and needs
b) Providing a general advice warning
c) Provide recommendations based on the needs of the client
d) Refer your customer to a specialist
c) Provide recommendations based on the needs of the client
Q5 - Which is the decision-making process of framing?
a) To make an easy decision, but not necessarily the best possible decision
b) To conclude that the best solution is to make no decision
c) To make a slow, deliberate decision over a fast, intuitive decision
d) To remove the 'noise' from an issue to allow us to see the problem for what it is
d) To remove the 'noise' from an issue to allow us to see the problem for what it is
,Q6 - Under the RG271 what is the maximum timeframes for IDR response for a Superannuation trustee
complaints?
A) 21 days after receiving the complaint
b) 30 days after receiving the complaint
c) 45 days after receiving the complaint
d) 90 days after receiving the complaint
c) 45 days after receiving the complaint
Q7 - In the second line of defence, the Risk and Control Functions include:
a) Review and challenge risk management processes
b) Objective assessment and offer assurance
c) Provide guidance and direction
d) (a) and (c)
d) (a) and (c)
Q8 - "When recording all information about a particular ethical dilemma, it's essential 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?
a) Step Two - Facts
b) Step One - Recognise
c) Step Four - Act.
d) Step Three - Discuss
b) Step One - Recognise
Q9 - The Australian Prudential Regulation Authority (APRA):
a) Provide regulatory oversight to self-managed superfunds
b) Make and enforce the rules which govern the capital adequacy of Australian banks
c) Ensures Australian banks meet their financial promises
d) (b) and (c)
d) (b) and (c)
Q10 - What is a feature or benefit of a Term Deposit?
a) Pays a higher rate of interest with a limited number of withdrawals
b) Access funds using a card at an ATM
c) Terms offered generally range from 30 days to 60 months
d) Only available to people over 55 years of age
c) Terms offered generally range from 30 days to 60 months
Q11 - The ______________ stage of the customer life cycle is where individuals have minimal or no
outstanding debt
,a) Youth
b) Independent
c) Retirement
d) Empty Nesters
d) Empty Nesters
Q12 - Most financial transactions entered into Banks and other financial institutions involve some sort of
contract. Which of the following does NOT:
a) Insurance policy
b) Finance company agreement
c) Loan agreements
d) Closing a savings account
d) Closing a savings account
Q13 - What is a honeymoon rate?
a) It provides certainty of knowing what repayments are
b) The rate fluctuates
c) Discounted interest rate for set period of loan
d) Restrictions on making additional repayments during the loan
c) Discounted interest rate for set period of loan
Q14 - What is the role of Internal Audit?
a) Provide guidance and direction
b) Apply internal controls and risk responses
c) Review 1st and 2nd line activities; and to provide an independent perspective and challenge
d) Develop risk management frameworks
c) Review 1st and 2nd line activities; and to provide an independent perspective and challenge
Q15 - Who is NOT a price taker?
a) Corporations and Government
b) Brokers who act as intermediaries
c) Banks and NBFI's
d) (b) and (c)
d) (b) and (c)
Q16 - What is the 5-step process for Ethical Dilemmas?
a) Facts, discuss, act, review, recognise
b) Discuss, recognise, facts, act, review
, c) Facts, discuss, review, recognise, act
d) Recognise, facts, Discuss, act, review
d) Recognise, facts, Discuss, act, review
Q17 - What is the four-step process to follow when handing customer complaints?
a) Gather facts, verify, solution, referral
b) Gather facts, build rapport, verify, solution
c) Empathise, gather facts, solution, verify
d) Build rapport, gather facts, verify, referral
c) Empathise, gather facts, solution, verify
Q18 - 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?
a) Factual information
b) General advice
c) Personal advice
d) Product recommendation
b) General advice
Q19 - What is the FIRST line of defence in the 'three lines of defence?'
a) Risk Management Committee
b) Operational Manager
c) Internal Audit
d) Internal Compliance
b) Operational Manager
Q20 - What is "Chinese walls" ?
a) Information barriers within the organisation to prevent exchanges or communication lead to conflicts
of interest
b) Information barriers within the organisation to prevent exchanges or communication of customer
information
c) Information barriers within the organisation to prevent exchanges or communication of meetings
agenda
d) Information barriers within the organisation to prevent exchanges or communication of performance
review
Q2 - Select the answer that describes Consequentialism:
a) The study of what I should do.
b) It is in favour of universal rules that apply to everyone.
c) The right decision is the one achieving the best outcome with least harm.
d) It is opposed to universal rules.
c) The right decision is the one achieving the best outcome with least harm.
"Mutually owned co-operative financial institutions offering benefits to members through a trust-like
structure" describes which type of Insurer/Fund Manager?
a) Trustee Company
b) Cash Management Trust
c) Friendly Society
d) Approved Deposit Fund (ADF)
c) Friendly Society
Q3 - Confidentiality applies not to only account transactions, but also to all the information the bank
holds about the customer.
a) True
b) False
a) True
Q4 - Which of the following is NOT one of the six steps you should use to ensure you only provide
general advice to the customer?
a) Assessing your customers concerns and needs
b) Providing a general advice warning
c) Provide recommendations based on the needs of the client
d) Refer your customer to a specialist
c) Provide recommendations based on the needs of the client
Q5 - Which is the decision-making process of framing?
a) To make an easy decision, but not necessarily the best possible decision
b) To conclude that the best solution is to make no decision
c) To make a slow, deliberate decision over a fast, intuitive decision
d) To remove the 'noise' from an issue to allow us to see the problem for what it is
d) To remove the 'noise' from an issue to allow us to see the problem for what it is
,Q6 - Under the RG271 what is the maximum timeframes for IDR response for a Superannuation trustee
complaints?
A) 21 days after receiving the complaint
b) 30 days after receiving the complaint
c) 45 days after receiving the complaint
d) 90 days after receiving the complaint
c) 45 days after receiving the complaint
Q7 - In the second line of defence, the Risk and Control Functions include:
a) Review and challenge risk management processes
b) Objective assessment and offer assurance
c) Provide guidance and direction
d) (a) and (c)
d) (a) and (c)
Q8 - "When recording all information about a particular ethical dilemma, it's essential 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?
a) Step Two - Facts
b) Step One - Recognise
c) Step Four - Act.
d) Step Three - Discuss
b) Step One - Recognise
Q9 - The Australian Prudential Regulation Authority (APRA):
a) Provide regulatory oversight to self-managed superfunds
b) Make and enforce the rules which govern the capital adequacy of Australian banks
c) Ensures Australian banks meet their financial promises
d) (b) and (c)
d) (b) and (c)
Q10 - What is a feature or benefit of a Term Deposit?
a) Pays a higher rate of interest with a limited number of withdrawals
b) Access funds using a card at an ATM
c) Terms offered generally range from 30 days to 60 months
d) Only available to people over 55 years of age
c) Terms offered generally range from 30 days to 60 months
Q11 - The ______________ stage of the customer life cycle is where individuals have minimal or no
outstanding debt
,a) Youth
b) Independent
c) Retirement
d) Empty Nesters
d) Empty Nesters
Q12 - Most financial transactions entered into Banks and other financial institutions involve some sort of
contract. Which of the following does NOT:
a) Insurance policy
b) Finance company agreement
c) Loan agreements
d) Closing a savings account
d) Closing a savings account
Q13 - What is a honeymoon rate?
a) It provides certainty of knowing what repayments are
b) The rate fluctuates
c) Discounted interest rate for set period of loan
d) Restrictions on making additional repayments during the loan
c) Discounted interest rate for set period of loan
Q14 - What is the role of Internal Audit?
a) Provide guidance and direction
b) Apply internal controls and risk responses
c) Review 1st and 2nd line activities; and to provide an independent perspective and challenge
d) Develop risk management frameworks
c) Review 1st and 2nd line activities; and to provide an independent perspective and challenge
Q15 - Who is NOT a price taker?
a) Corporations and Government
b) Brokers who act as intermediaries
c) Banks and NBFI's
d) (b) and (c)
d) (b) and (c)
Q16 - What is the 5-step process for Ethical Dilemmas?
a) Facts, discuss, act, review, recognise
b) Discuss, recognise, facts, act, review
, c) Facts, discuss, review, recognise, act
d) Recognise, facts, Discuss, act, review
d) Recognise, facts, Discuss, act, review
Q17 - What is the four-step process to follow when handing customer complaints?
a) Gather facts, verify, solution, referral
b) Gather facts, build rapport, verify, solution
c) Empathise, gather facts, solution, verify
d) Build rapport, gather facts, verify, referral
c) Empathise, gather facts, solution, verify
Q18 - 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?
a) Factual information
b) General advice
c) Personal advice
d) Product recommendation
b) General advice
Q19 - What is the FIRST line of defence in the 'three lines of defence?'
a) Risk Management Committee
b) Operational Manager
c) Internal Audit
d) Internal Compliance
b) Operational Manager
Q20 - What is "Chinese walls" ?
a) Information barriers within the organisation to prevent exchanges or communication lead to conflicts
of interest
b) Information barriers within the organisation to prevent exchanges or communication of customer
information
c) Information barriers within the organisation to prevent exchanges or communication of meetings
agenda
d) Information barriers within the organisation to prevent exchanges or communication of performance
review
