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A. Payment Services Directive 2 (PSD2) B. Dodd-Frank Act C. Sarbanes-Oxley Act D. Basel Accord AnswerOption: A
Read More »What is a “Credit Default Swap”?
A. A financial instrument to swap loan repayments B. A type of insurance against bond default C. A currency exchange agreement D. A swap agreement between banks AnswerOption: B
Read More »Which entity is known as the “lender of last resort”?
A. Commercial Bank B. Central Bank C. World Bank D. International Monetary Fund AnswerOption: B
Read More »Which financial instrument is used by banks to hedge against interest rate fluctuations?
A. Futures B. Options C. Swaps D. Bonds AnswerOption: C
Read More »What is the purpose of a “SWIFT Code” in banking transactions?
A. To identify a specific branch of a bank B. To track foreign exchange rates C. To facilitate international wire transfers D. To encrypt online banking transactions AnswerOption: C
Read More »Which term is used to describe the process by which banks assess the creditworthiness of borrowers?
A. Credit Scoring B. Underwriting C. Risk Assessment D. Loan Evaluation AnswerOption: B
Read More »What is the main role of the International Monetary Fund (IMF)?
A. To facilitate international trade B. To provide loans to developing countries C. To ensure financial stability and provide economic advice D. To regulate stock markets globally AnswerOption: C
Read More »Which of the following is NOT a part of a bank’s balance sheet?
A. Assets B. Liabilities C. Equity D. Revenue AnswerOption: D
Read More »What does “RTGS” stand for in the context of electronic funds transfer?
A. Real-Time Gross Settlement B. Rapid Transaction Gateway System C. Regular Transfer Guaranteed Service D. Remote Transaction Global System AnswerOption: A
Read More »Which term refers to the difference between the interest rate charged on loans and the interest rate paid on deposits by a bank?
A. Spread B. Margin C. Yield D. Profit AnswerOption: A
Read More »What is the primary objective of the Financial Action Task Force (FATF)?
A. To combat money laundering and terrorist financing B. To promote fair trade agreements C. To support economic development in emerging markets D. To regulate stock exchanges worldwide AnswerOption: A
Read More »Which organization is responsible for the regulation of banks in the United States?
A. Federal Reserve System B. European Central Bank C. World Bank D. International Monetary Fund AnswerOption: A
Read More »What does the term “NPA” stand for in banking?
A. Non-Performing Asset B. New Payment Agreement C. Net Profit Allocation D. National Payment Authority AnswerOption: A
Read More »Which of the following is a characteristic of Islamic banking?
A. Fixed interest rates on loans B. Profit-sharing in investments C. Short-term loans only D. High-risk financial products AnswerOption: B
Read More »What is a “Repo Rate”?
A. The rate at which the central bank lends money to commercial banks B. The rate at which banks lend money to the public C. The rate at which banks borrow money from each other D. The rate at which the government borrows money from international institutions AnswerOption: A
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