Exam Flashcards
The UKs financial conduct authority identifies four key drivers of vulnerability among bank customers. Which of the following is not one of these drivers?
Location
Which one of the following is a feature of a rule-based code of practice as opposed to a principal base code?
It is inflexible and has a narrower scope
Which of the following statement is not correct about optichannel Banking ?
It gives customers to access to many channels
What name is given to the way that a failing bank is managed in an orderly way by a countries financial regulator?
Resolution
A bank wants to enhance its reputation by improving its sustainability credentials. Which one of the following is the greatest contribution that bank can make to creating a sustainable world?
Re-allocating credit and capital to sustainable projects
A customer is dissatisfied with the experience with a traditional bank, and is considering moving their account to a challenger bank. Which one of the following is correct of all challenger banks? They:
Complete through innovative services
The stakeholder approach to running a bank states that the bank must always
Balance the needs of all stakeholders when taking decisions
Principal five of the charted banker code of professional conduct is ‘ observing and demonstrating proper standards of market conduct at all times’. Which key values does this principal address?
Compliance and integrity
Simon has been identified as a digitally excluded customer. What is likely to most help him be less digitally excluded.
= courses in financial literacy
Banks are obliged to carry out customer due diligence (CDD) which of the following is not part of the CDD process?
Providing customers with a choice of products
According to the U.K.’s financial conduct authority, which of the following is an effect of digital Banking ?
Consumer data can be shared with approved third parties
Which of the following is correct about the UN principle for responsible banking?
They expect banks to publish an impact analysis
Which of the following is a characteristics of omnichannel banking, as opposed to mutlichannel banking?
It relies on ‘big data’
Why does a bank charge lower interest rate on a mortgage loan than a credit card?
The mortgage loan is secured on the property
What is correct about private limited company?
They are separately legal entities from their shareholders
What is not true about whistleblowing?
Whistle blowing processes support individuals in raising a personal grievance
What statement about stakeholders and shareholders is correct
Shareholders want high dividends and a high share value
What is likely to be an advantage of digital banking to a bank?
A fall in operational cost
Within the context of customer complaints, root cause analysis enables a bank to distinguish between
The symptoms of the problem and the underlying cause of the problem
Which of the four main components of advance analytical solutions, for banks on the question ‘ what should we do next’?
Prescriptive analytics
What is not an objective of the U.K.’s financial conduct of authority?
Providing compensation to consumers if a bank fails
What is not true of the cross cutting rules set out by the U.K.’s consumer duty? Firms must…
Take responsibility for their financial decisions made by their customer
Which one is typically correct about the relationship between the profitability and liquidity of an asset held by a bank?
The less profitable the asset, the greater its liquidity
Which of the following principal guides tbs work of the U.K.’s financial conduct authority in the way it applies its resources?
Efficiency and economy
According to the bank for international settlements (2023), which type of risk is defined as ‘ the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events’?
Operational risk
An overdraft is
A negative balance on a current account
Which of the following is an international body which makes recommendations about the global banking system?
Financial stability board
Define size transformation
= bank collect small deposit and repackages them into larger loans
Which following statement about risk is correct?
The higher the risk for a lender, the higher the expected reward
Which of the following would be the result of a high-level of churn among a bank current account customers?
A campaign to increase customer satisfaction
Bank define their purpose by publishing several documents, what does a bank vision statement contain?
A bank aspirations for the future
The objective of the Paris agreement 2015 is to
Limit the rise in global average temperature
Saira has been the victim of cybercrime and was tricked into providing sensitive information about her financial affairs. What is the name given to this type of cybercrime
Phishing
Financial regulation, which is concerned with the stability of the financial system as a whole is known as
Macro prudential regulation
What is the meaning of ‘customer on boarding’ for a bank
The process by which customers are set up and begin using a product
Which of the following are raised in which new technologies can enhance the experience of a bank customer?
- Personalising product.
- Providing greater Online security.
- Simplifying processes
- Simulating a future life-cycle.
Answer = 1,2,3 and 4
Most countries have a financial complaints handling service. Which of the following is normally the first step for a dissatisfied customer to take a complaints procedure?
Make the complaint to relevant firm
Which of the following is only true of mutual banks and not also true or publicly listed banks. Mutual banks:
Are owned by their customers
Which one of the following should not be taken into account by a bank employee when resolving an ethical dilemma?
The unintended consequences of the decision
Tom and Selma are bank Personal customers who are very wealthy. Banks typically described these customers as
High net worth individuals
