CQIB Exam Study Guide | 100% Correct
Answers | Verified | Latest 2024 Version
Which regulator makes and enforces rules which govern the capital adequacy of Australian Banks? -
✔✔The Australian Prudential Regulation Authority - APRA
What events occurred in the Banking Industry in 1800s and early 1900s? - ✔✔First Bank in Australia was
Bank of NSW, Established in 1817 Sydney.
Discovery of gold in 1851 led to minting of Australia's own gold coins spurring development of Banking.
Boom in Australian property market in 1800s led to Banking crisis in 1893.
What events occurred in 1910-1920 in the Banking Industry? - ✔✔Australian pound was issues as the
Legal tender in Australia and the Australian Notes act 1910 assigned responsibility for the issue of Bank
notes to the Commonwealth Treasury.
What events occurred in 1911-1913 in the Banking Industry? - ✔✔Federal government established the
Commonwealth Bank, which by 1913 had branches in 6 states.
What events occurred in 1920 in the Banking Industry? - ✔✔Commonwealth performed some central
Bank functions, which greatly expanded in World War II.
What events occurred in 1930-1931 in the Banking Industry? - ✔✔1931 - The Great Depression, By the
end Banking Industry became tightly regulated. Banks classified as either savings or trading Banks.
What events occurred in 1990-2000 in the Banking Industry? - ✔✔14/01/1960 - Reserve Bank of
Australia was created
1969 - Rolled out ATMs, and early 1970 BSB identifier was introduced.
What events occurred in 2000-2017 in the Banking Industry? - ✔✔Renewed emphasis on corporate
governance, values, ethics. Jan 17 - Better Banking program launched with initiatives:
- Independent review of retail Banking remuneration and how we pay staff.
,- Getting problems fixed
- Protecting whistle-blowers
- Stopping poor conduct, and review of code of Banking practise
What are other Finance service providers?
Authorised Deposit-Taking Institutions (ADI's) - ✔✔Building Societies:
Credit Unions:
What is a Building Society? - ✔✔A mutual institution, which means that most people who have a savings
account, or mortgage are members. Each building society and are responsible for setting its strategy.
- Owner by and for the members
- Limit on proportion of their funds that building societies can raise from wholesale money market
- Reinvest surplus revenue into the business to provide new products and services.
What is a credit union? - ✔✔a non-profit-making money cooperative whose members can borrow from
pooled deposits at low interest rates.
What are non-ADI's financial intermediaries? - ✔✔- Money Markets Corporations
- Finance Companies
- Securitisation Vehicles
What are the 4 types of financial markets - ✔✔1. Primary Markets
2. Secondary Market
3. Exchange Traded Markets
4. Over the counter markets
What is the Interest rate or Debt market. - ✔✔Trading (Buying and Selling) includes shart term securities
and long term securities such as government and corporate bonds.
, What is the Foreign Exchange Market? - ✔✔Exchanging one currency for another. Largest financial
market in the World and 24 hours a day.
Trading shared in listed companies - ✔✔What is the equities market?
What is the Commodities Market? - ✔✔Trading in raw or primary products such as wheat, grain, cattle.,
or electricity.
What is the Derivatives Market? - ✔✔A contract whose value is derived from one or more underlining
assets or instruments; for example, forward rate agreements or underlying exchange rates.
What is microeconomics? - ✔✔the study of how households and firms make decisions and how they
interact in markets. Supply and demand that impact the price levels in the economy. Taxes and
Regulation created by governments.
What is macroeconomics? - ✔✔The study of the economy as a whole
- Unemployment rates
- Gross Domestic Product - GDP
- Inflation
- Export and Imports
What are the Australian Economy Facts and Figures - ✔✔14th Largest economy measured by GDP 1.99
Trillon - 2019
- Australian Labour force 12.3 millions June 2020
- Low levels of inflation 2% July 2020
- Unemployment rate 7%
What is Fiscal Policy? - ✔✔Government spending and taxation that influences the economy.
What is the Monetary Policy - ✔✔RBA is responsible for Australians monetary policy - aims to protect
price stability full employment and economic prosperity.
Answers | Verified | Latest 2024 Version
Which regulator makes and enforces rules which govern the capital adequacy of Australian Banks? -
✔✔The Australian Prudential Regulation Authority - APRA
What events occurred in the Banking Industry in 1800s and early 1900s? - ✔✔First Bank in Australia was
Bank of NSW, Established in 1817 Sydney.
Discovery of gold in 1851 led to minting of Australia's own gold coins spurring development of Banking.
Boom in Australian property market in 1800s led to Banking crisis in 1893.
What events occurred in 1910-1920 in the Banking Industry? - ✔✔Australian pound was issues as the
Legal tender in Australia and the Australian Notes act 1910 assigned responsibility for the issue of Bank
notes to the Commonwealth Treasury.
What events occurred in 1911-1913 in the Banking Industry? - ✔✔Federal government established the
Commonwealth Bank, which by 1913 had branches in 6 states.
What events occurred in 1920 in the Banking Industry? - ✔✔Commonwealth performed some central
Bank functions, which greatly expanded in World War II.
What events occurred in 1930-1931 in the Banking Industry? - ✔✔1931 - The Great Depression, By the
end Banking Industry became tightly regulated. Banks classified as either savings or trading Banks.
What events occurred in 1990-2000 in the Banking Industry? - ✔✔14/01/1960 - Reserve Bank of
Australia was created
1969 - Rolled out ATMs, and early 1970 BSB identifier was introduced.
What events occurred in 2000-2017 in the Banking Industry? - ✔✔Renewed emphasis on corporate
governance, values, ethics. Jan 17 - Better Banking program launched with initiatives:
- Independent review of retail Banking remuneration and how we pay staff.
,- Getting problems fixed
- Protecting whistle-blowers
- Stopping poor conduct, and review of code of Banking practise
What are other Finance service providers?
Authorised Deposit-Taking Institutions (ADI's) - ✔✔Building Societies:
Credit Unions:
What is a Building Society? - ✔✔A mutual institution, which means that most people who have a savings
account, or mortgage are members. Each building society and are responsible for setting its strategy.
- Owner by and for the members
- Limit on proportion of their funds that building societies can raise from wholesale money market
- Reinvest surplus revenue into the business to provide new products and services.
What is a credit union? - ✔✔a non-profit-making money cooperative whose members can borrow from
pooled deposits at low interest rates.
What are non-ADI's financial intermediaries? - ✔✔- Money Markets Corporations
- Finance Companies
- Securitisation Vehicles
What are the 4 types of financial markets - ✔✔1. Primary Markets
2. Secondary Market
3. Exchange Traded Markets
4. Over the counter markets
What is the Interest rate or Debt market. - ✔✔Trading (Buying and Selling) includes shart term securities
and long term securities such as government and corporate bonds.
, What is the Foreign Exchange Market? - ✔✔Exchanging one currency for another. Largest financial
market in the World and 24 hours a day.
Trading shared in listed companies - ✔✔What is the equities market?
What is the Commodities Market? - ✔✔Trading in raw or primary products such as wheat, grain, cattle.,
or electricity.
What is the Derivatives Market? - ✔✔A contract whose value is derived from one or more underlining
assets or instruments; for example, forward rate agreements or underlying exchange rates.
What is microeconomics? - ✔✔the study of how households and firms make decisions and how they
interact in markets. Supply and demand that impact the price levels in the economy. Taxes and
Regulation created by governments.
What is macroeconomics? - ✔✔The study of the economy as a whole
- Unemployment rates
- Gross Domestic Product - GDP
- Inflation
- Export and Imports
What are the Australian Economy Facts and Figures - ✔✔14th Largest economy measured by GDP 1.99
Trillon - 2019
- Australian Labour force 12.3 millions June 2020
- Low levels of inflation 2% July 2020
- Unemployment rate 7%
What is Fiscal Policy? - ✔✔Government spending and taxation that influences the economy.
What is the Monetary Policy - ✔✔RBA is responsible for Australians monetary policy - aims to protect
price stability full employment and economic prosperity.
