Exam

Question 1

The UKs financial conduct authority identifies four key drivers of vulnerability among bank customers. Which of the following is not one of these drivers?

Answer 1

Location

Question 2

Which one of the following is a feature of a rule-based code of practice as opposed to a principal base code?

Answer 2

It is inflexible and has a narrower scope

Question 3

Which of the following statement is not correct about optichannel Banking ?

Answer 3

It gives customers to access to many channels

Question 4

What name is given to the way that a failing bank is managed in an orderly way by a countries financial regulator?

Answer 4

Resolution

Question 5

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?

Answer 5

Re-allocating credit and capital to sustainable projects

Question 6

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:

Answer 6

Complete through innovative services

Question 7

The stakeholder approach to running a bank states that the bank must always

Answer 7

Balance the needs of all stakeholders when taking decisions

Question 8

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?

Answer 8

Compliance and integrity

Question 9

Simon has been identified as a digitally excluded customer. What is likely to most help him be less digitally excluded.

Answer 9

= courses in financial literacy

Question 10

Banks are obliged to carry out customer due diligence (CDD) which of the following is not part of the CDD process?

Answer 10

Providing customers with a choice of products

Question 11

According to the U.K.’s financial conduct authority, which of the following is an effect of digital Banking ?

Answer 11

Consumer data can be shared with approved third parties

Question 12

Which of the following is correct about the UN principle for responsible banking?

Answer 12

They expect banks to publish an impact analysis

Question 13

Which of the following is a characteristics of omnichannel banking, as opposed to mutlichannel banking?

Answer 13

It relies on ‘big data’

Question 14

Why does a bank charge lower interest rate on a mortgage loan than a credit card?

Answer 14

The mortgage loan is secured on the property

Question 15

What is correct about private limited company?

Answer 15

They are separately legal entities from their shareholders

Question 16

What is not true about whistleblowing?

Answer 16

Whistle blowing processes support individuals in raising a personal grievance

Question 17

What statement about stakeholders and shareholders is correct

Answer 17

Shareholders want high dividends and a high share value

Question 18

What is likely to be an advantage of digital banking to a bank?

Answer 18

A fall in operational cost

Question 19

Within the context of customer complaints, root cause analysis enables a bank to distinguish between

Answer 19

The symptoms of the problem and the underlying cause of the problem

Question 20

Which of the four main components of advance analytical solutions, for banks on the question ‘ what should we do next’?

Answer 20

Prescriptive analytics

Question 21

What is not an objective of the U.K.’s financial conduct of authority?

Answer 21

Providing compensation to consumers if a bank fails

Question 22

What is not true of the cross cutting rules set out by the U.K.’s consumer duty? Firms must…

Answer 22

Take responsibility for their financial decisions made by their customer

Question 23

Which one is typically correct about the relationship between the profitability and liquidity of an asset held by a bank?

Answer 23

The less profitable the asset, the greater its liquidity

Question 24

Which of the following principal guides tbs work of the U.K.’s financial conduct authority in the way it applies its resources?

Answer 24

Efficiency and economy

Question 25

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’?

Answer 25

Operational risk

Question 26

An overdraft is

Answer 26

A negative balance on a current account

Question 27

Which of the following is an international body which makes recommendations about the global banking system?

Answer 27

Financial stability board

Question 28

Define size transformation

Answer 28

= bank collect small deposit and repackages them into larger loans

Question 29

Which following statement about risk is correct?

Answer 29

The higher the risk for a lender, the higher the expected reward

Question 30

Which of the following would be the result of a high-level of churn among a bank current account customers?

Answer 30

A campaign to increase customer satisfaction

Question 31

Bank define their purpose by publishing several documents, what does a bank vision statement contain?

Answer 31

A bank aspirations for the future

Question 32

The objective of the Paris agreement 2015 is to

Answer 32

Limit the rise in global average temperature

Question 33

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

Answer 33

Phishing

Question 34

Financial regulation, which is concerned with the stability of the financial system as a whole is known as

Answer 34

Macro prudential regulation

Question 35

What is the meaning of ‘customer on boarding’ for a bank

Answer 35

The process by which customers are set up and begin using a product

Question 36

Which of the following are raised in which new technologies can enhance the experience of a bank customer?

Answer 36

1. Personalising product.
2. Providing greater Online security.
3. Simplifying processes
4. Simulating a future life-cycle.

Answer = 1,2,3 and 4

Question 37

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?

Answer 37

Make the complaint to relevant firm

Question 38

Which of the following is only true of mutual banks and not also true or publicly listed banks. Mutual banks:

Answer 38

Are owned by their customers

Question 39

Which one of the following should not be taken into account by a bank employee when resolving an ethical dilemma?

Answer 39

The unintended consequences of the decision

Question 40

Tom and Selma are bank Personal customers who are very wealthy. Banks typically described these customers as

Answer 40

High net worth individuals