Exam (elaborations)
CQIB EXAM QUESTIONS AND ANSWERS
- Course
- Institution
CQIB EXAM QUESTIONS AND ANSWERS
[Show more]
Content preview
CQIB EXAM QUESTIONS AND ANSWERSWhat is wholesale banking? - answers- borrowing from and lending to corporate clients
or other financial institutions.
What is investment banking? - answers- serve high net worth customers in functions of
capital market activities i.e. Bonds and shares, trading and mergers and acquisitions
What are debt capital markets? - answers- where capital is raised through the issue of
bonds. Investment banks are involved to plan, manage, and sell the bonds
What are equity capital markets? - answers- where funds are raised by undertaking an
initial public offerings (ipo), selling shares to the public for the first time
What are private placements? - answers- plan an offering of bonds with institutional
investors that has lower reglulatory requirements
What is electronic funds transfer? - answers- funds transferred electronically between
banks
What are negotiable instruments? - answers- bank drafts, cheques and letters of credit
What are periodic payments? - answers- direct debit and standing orders, where the
bank mades payments on behalf of the customer
What are periodic collections? - answers- direct credits- where the bank collects
payments on behalf of the customer
What are debit cards? - answers- a card that is issued by the bank that lets the
customer buy for goods and services and drawn on money from their own account.
What are international money transfers? - answers- a transfer of funds internationally.
What are e-commerce payment systems? - answers- allows businesses to accept
electronic payments with settlement on the same day.
What is insurance? - answers- a contract between two parties, whereby one party
agrees to make payment to another party, who will assume liability should an agreed
event occur
What is transfer of risk? - answers- a risk management technique whereby risk of loss
is transferred to another party
What is wealth management - answers- investment + superannuation + requirement
products
, What are safe custody services? - answers- the safekeeping of valuable assets and
documents
What is portfolio management? - answers- personalised management of a customers
investments
What are personal advisory services? - answers- private bank function supplying
specialist advise
What are corporatists advisory services - answers- specialist area of banking
associated with raising capital for corporate clients
What are mergers and acquisitions? - answers- where one company looks to purchase
another company- an investment bank offers advise on the process and pricing
What are chinese walls? - answers- barriers to mitigate exchanges of information that
could lead to conflict of interest
What are accepting deposits? - answers- the banks first core main function. It is how
banks source a majority of their funds
What is granting loans? - answers- banks second core main function
What is an overdraft - answers- a defined credit limit attached to a bank account that
can be drawn against
What is a credit card? - answers- allows for customers to purchase goods and services
now and pay them off at a later date- generally monthly.
What are bills of exchange and promissory notes? - answers- specialised instruments,
an unconditional order between parties where the bank purchases the bill amount and
on maturity the borrower pays the full amount.
What is equipment leasing and hire purchase? - answers- forms of borrowing to finance
plant, machinery and vehicles
What is trade finance? - answers- facilitation of import and export transactions e.g.
Lending, letters of credit, insurance
What is a short term loan- (personal loan) - answers- lending where the principle and
repayments are made over a shorter timeframe i.e. 5 years- generally for cars, holidays,
What is a long term loan? - answers- lending where the principle and repayments are
made over a longer timeframe i.e 30 years
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Greaterheights. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76799 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now