CQIB COMPLETE QUESTIONS AND CORRECT ANSWERS | GRADED AND THE LATEST SERIES

CQIB COMPLETE QUESTIONS AND CORRECT
ANSWERS | GRADED AND THE LATEST SERIES
what is wholesale banking?


Ans: borrowing from and lending to corporate clients or other financial
institutions.


Question: What is investment banking?


Ans: Serve high net worth customers in functions of capital market activities i.e.
bonds and shares, trading and mergers and acquisitions


Question: What are debt capital markets?


Ans: Where capital is raised through the issue of bonds. Investment banks are
involved to plan, manage, and sell the bonds


Question: What are equity capital markets?


Ans: Where funds are raised by undertaking an initial public offerings (IPO),
selling shares to the public for the first time


Question: What are private placements?


Ans: Plan an offering of bonds with institutional investors that has lower
reglulatory requirements


Question: What are mergers and acquisitions?


Ans: where one company looks to purchase another company- an investment
bank offers advise on the process and pricing

,Question: What are chinese walls?


Ans: Barriers to mitigate exchanges of information that could lead to conflict of
interest


Question: What are accepting deposits?


Ans: The banks first core main function. It is how banks source a majority of
their funds


Question: What is granting loans?


Ans: Banks second core main function


Question: What is an overdraft


Ans: A defined credit limit attached to a bank account that can be drawn
against


Question: what is a credit card?


Ans: allows for customers to purchase goods and services now and pay them off
at a later date- generally monthly.


Question: What are bills of exchange and promissory notes?


Ans: Specialised instruments, an unconditional order between parties where the
bank purchases the bill amount and on maturity the borrower pays the full amount.


Question: What is equipment leasing and hire purchase?

, Ans: Forms of borrowing to finance plant, machinery and vehicles


Question: What is trade finance?


Ans: Facilitation of import and export transactions e.g. lending, letters of credit,
insurance


Question: What is a short term loan- (personal loan)


Ans: lending where the principle and repayments are made over a shorter
timeframe i.e. 5 years- generally for cars, holidays,


Question: what is a long term loan?


Ans: Lending where the principle and repayments are made over a longer
timeframe i.e 30 years


Question: What is Electronic funds Transfer?


Ans: Funds transferred electronically between banks


Question: What are negotiable instruments?


Ans: Bank drafts, cheques and letters of credit


Question: What are periodic payments?


Ans: Direct Debit and standing orders, where the bank mades payments on
behalf of the customer


Question: What are periodic collections?