Bank Exam Quiz PDF

## Question (2): Choose the right answer: ### Q01: Like Primary Functions of Bank, the secondary functions are also classified into two parts: * A. Accepting of deposits and Granting of loans and advances * B. Agency functions and Utility Functions * C. Accepting of deposits and Agency functions *...

## Question (2): Choose the right answer: ### Q01: Like Primary Functions of Bank, the secondary functions are also classified into two parts: * A. Accepting of deposits and Granting of loans and advances * B. Agency functions and Utility Functions * C. Accepting of deposits and Agency functions * D. Accepting of deposits and Utility Functions ### Q02: Liquidity management: * A. relates to trying to obtain high-interest rates from borrowers and reducing the risks of those loans * B. is about trying to find cheap funds and use them as a loan * C. is managing financial obligations through liquidity or cash money * D. is maintaining a minimum level of capital adequacy in the bank. Available capital should not be too little or too high ### Q03: Asset management: * A. relates to trying to obtain high-interest rates from borrowers and reducing the risks of those loans * B. is about trying to find cheap funds and use them as a loan * C. is managing financial obligations through liquidity or cash money * D. is maintaining a minimum level of capital adequacy in the bank. Available capital should not be too little or too high ### Q04: Liability management: * A. relates to trying to obtain high-interest rates from borrowers and reducing the risks of those loans * B. is about trying to find cheap funds and use them as a loan * C. is managing financial obligations through liquidity or cash money * D. is maintaining a minimum level of capital adequacy in the bank. Available capital should not be too little or too high ### Q05: Capital adequacy management: * A. relates to trying to obtain high-interest rates from borrowers and reducing the risks of those loans * B. is about trying to find cheap funds and use them as a loan * C. is managing financial obligations through liquidity or cash money * D. is maintaining a minimum level of capital adequacy in the bank. Available capital should not be too little or too high ### Q06: Licensing: * A. consists of supervision of the bank's activities by a government regulatory body * B. consists of supervision of the bank's activities by a private sector. * C. provides the licence holders the right to own and to operate a bank. * D. ensures that the functioning of the bank complies with the regulatory guidelines and monitors for possible deviations from regulatory standards. ### Q07: Supervision: * A. sets certain requirements for starting a new bank. * B. consists of supervision of the bank's activities by a private sector. * C. provides the licence holders the right to own and to operate a bank. * D. ensures that the functioning of the bank complies with the regulatory guidelines and monitors for possible deviations from regulatory standards. ### Q08: One of the objectives of bank regulation is to avoid misuse of banks that means: * A. reduce the risk of banks disruption causing multiple or major bank failures. * B. reduce the risk of banks being used for criminal purposes. * C. direct credit to favored sectors. * D. reduce the level of risk to which bank creditors are exposed. ### Q09: Supervision of the bank's activities should done by: * A. a private sector. * B. a government regulatory body. * C. an insurance company. * D. a competitors. ### Q10: One of the objectives of bank regulation is the systemic risk reduction that means: * A. reduce the risk of banks disruption causing multiple or major bank failures. * B. reduce the risk of banks being used for criminal purposes. * C. direct credit to favored sectors. * D. reduce the level of risk to which bank creditors are exposed. ### Q11: It refers to the risks associated with changes to exchange rates: * A. Capital market risk * B. Currency risk * C. Interest Rate Risk * D. Liquidity Risk