CBO Paper 1 PDF

CBO Paper 1 Study online at https://quizlet.com/_e9honj Product that is used as retirement tool for steady income A. Life insurance A. Life insura...

CBO Paper 1 Study online at https://quizlet.com/_e9honj Product that is used as retirement tool for steady income A. Life insurance A. Life insurance B. General Insurance C. Equity Funds D. Bond Funds An insurance policy that provides both death and investment option A. Whole Life Policy C. Variable Life b. Term Life Policy C. Variable Life D. All of them A rider that offers monthly income to nominee on death of life assured A. Term Rider A. Term Rider B. Premium Rider C. Disability Rider D. Illness Rider A life insurance policy that does not have a Cash Value A. Whole Life Policy B. Term Life Policy B. Term Life Policy C. Variable life D. Endowment Life The objective of taking a general insur- ance is to plan for retirements B. False A. True B. False Benefits of Investment Products A. Professionalism D. All of them B. Diversification C. Affordability D. All of them Investments where funds are equally dis- tributed between bonds and equity C. Balanced Funds A. Money Market Funds B. Bond Funds 1 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj C. Balanced Funds D. Equity Funds Which one of the following funds are least risky investment? A. Money Market Funds A. Money Market Funds B. Bond Funds C. Balanced Funds D. Equity Funds Investments with high risks are expected to provide high returns A. True A. True B. False Investment fund that provide monthly in- come to investors from coupons and div- idends of shares C. Income Fund A. Guaranteed Fund B. Balanced Fund C. Income Fund D. Bond Fund ATMs are used to process card pay- ments at retail shops B. False A. True B. False Banking Service that is used to transfer fund inside and outside the country A. Standing Order C. Remittance Facility B. Direct Debit Facility C. Remittance Facility D. All of them Cards that are enabled with the top up facility A. Credit Cards C. Prepaid Cards B. Debit Cards C. Prepaid Cards D. All of them 2 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj Channels of banking reduce of cost to a bank as well as costumer A. True A. True B. False Banking service used for periodic pay- ments towards utility bills and insurance services A. Standing Order A. Standing Order B. Direct Debit Facility C. SWIFT facility D. All of them The Stage where business and financial analysis are done on a customer A. Sales B. Credit Approval B. Credit Approval C. Credit administration D. Credit Monitoring The financial statement that is prepared to understand the revenue and expendi- ture of a corporate B. Income statement A. Balance sheet B. Income statement C. Statement of cash flows D. Statement of retained earnings Which is not part of the 5Cs of credit decision? A. Character D. Cost B. Collateral C. Capacity D. Cost The Stage where the loan is actually dis- bursed to the customer A. Credit Approval B. Cedit adminsitration B. Cedit adminsitration C. Credit Monitoring D. Collections 3 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj The ratio that measure the firm's ability to meet current obligations A. Liquidity Ratio A. Liquidity Ratio B. Leverage Ratio C. Activity Ratio D. Profitability Ratio Which of the following cannot be used as a Collateral A. Bank Deposits D. General Insurance b. Stocks and Shares C. Life Insurance D. General Insurance Which type of loan is a Unsecured Loan? A. Personal loan A. Personal loan B. Auto loan C. Mortgage loan D. Corporate loan A debenture is a written acknowledg- ment of debts issued by individuals B. False A. True B. False Third Party guarantee should be exer- cised by one party in case of Non perfor- A. True mance by the other party A. True B. False In a Mortgage relationship, the mort- gager has the right to enforce the secu- B. False rity in case of loan default A. True B. False Cheque Books are issued to A. Current Account A. Current Account B. Savings Account C. Fixed Deposit D. All of them 4 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj Recommend (best) account where you save regularly to build up fixed sum over a period of time D. Recurring deposit A. Savings account B. Fixed deposit C. Call deposit D. Recurring deposit Unlimited Deposits and unlimited with- drawal is allowed in A. Current Account A. Current Account B. Savings Account C. Fixed Deposit D. Call Deposit Prior Notice to be given to banks before withdrawl of A. Savings account C. Call deposit B. Fixed Deposit C. Call deposit D. Recurring deposit Offering of financial services to individual or personal customers A. Retail Banking A. Retail Banking B. Corporate Banking C. Business Banking D. SME Banking The repayment of a car loan must not exceed A. 12 months D. 60 months B. 24 months C. 48 months D. 60 months The interest on a credit card is less than a personal loan B. False A. True B. False 5 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj Mr. Ahmed has a salary of 10,000dhs. The maximum amount of Personal Loan he can take D. 200,000 A. 50,000 B. 100,000 C. 150,000 D. 200,000 The repayment of a personal loan must not exceed A. 12 months C. 48 months B. 24 months C. 48 months D. 60 months Maximum amount in mortgage loan in retail banking A. 5 million B. 10 million B. 10 million C. 12 million D. No limit Financial conglomerate functioning as fi- nancial supermarkets B. universal banking A. commercial banking B. universal banking C. branch banking Deposits that circulate as money leading to net increase in the money is known as C. credit creation A. fixed deposit B. Savings C. credit creation Banking Business carried over a large network of businesses is known as A. Branch banking A. Branch banking B. Universal Banking C. Commercial Banking Primary function of a bank is C. Both A & B A. Accepting deposits 6 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj B. Lending C. Both A & B Accounts preferred by businessmen are A. Savings Account B. Current Account B. Current Account C. Fixed Deposit Special Accounts are A. Call Deposit B. Minor Account B. Minor Account C. Current Account KYC is known as B. Know Your Customer A. Knowledgable customer B. Know Your Customer Account Opening Considerations are A. Authority D. All of the options B. Identity C. Respectability D. All of the options No cheque book ir 3rd party mandate is provided for which accounts B. Illiterate account A. Joint account B. Illiterate account C. Minor account Accounts for minors will be opened as A. Minor Account C. Parent A/C Minor B. Special Account C. Parent A/C Minor Minor is a person as per Hijra calendar with age below A. 21 A. 21 B. 18 C. 16 Closure of account due to a common concern known as unsatisfactory con- A. Money laundering duct is done after taking approvals from regulatory authority. The unsatisfactory 7 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj conduct is A. Money laundering B. Death of customer C. Mental incapacity Due to mental incapacity of the customer the account closure is down according to A. True law A. True B. False A person is moving out of the country, in this case the request for closing the account is provided by C. Customer request A. Discretion of the bank B. Required by Law C. Customer request How many time in a year frequent return of cheques leads to closure of account B. 4 A. 2 B. 4 C. 5 Bank whom the cheque is drawn is known as B. Paying Bank A. Collecting Bank B. Paying Bank Paying Bank is liable to make payment in case of forged signature when it is provided that no gross negligence was B. False done by the drawer A. True B. False Cheque Truncation system help in better cash management A. True A. True B. False A system of cheque clearance and set- tlement between banks based on image 8 / 24  CBO Paper 1 Study online at https://quizlet.com/_e9honj is A. Cheque Truncation System A. Cheque Truncation System B. Cheque Endorsement The third stage of money laundering is known as C. Integration A. Placement B. Layering C. Integration What is the second stage of Money laun- dering C. Layering A. Integration B. Placement C. Layering Money when placed into system it is known as A. Placement A. Placement B. Integration C. Layering Series of repeated transactions done from one account to another account are known as C. Layering A. Placement B. Integration C. Layering process by which original source of ille- gal money is concealed is known as A. Money Laundering A. Money Laundering B. Legal money AML helps to detect and report suspi- cious actives A. True A. True B. False If a negotiable instrument is easily trans- ferred by endorsement or delivery, it is A. Transferability known as A. Transferability 9 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj B. Good Title C. Right to Sue What are the features of Negotiable in- strument? A. Transferability D. All of the options B. Good Title C. Right to Sue D. All of the options Negotiable instruments are credit instru- ments that are not transferable B. False A. True B. False An instrument in writing containing an unconditional order is A. Bills of Exchange A. Bills of Exchange B. Promissory notes C. Cheques The maker of instrument is known as A. Drawer A. Drawer B. Drawee C. Payee An instrument in writing containing an unconditional undertaking is B. Promissory notes A. Bills of Exchange B. Promissory notes C. Cheques Signing on back of instrument only is known as A. Blank Endorsement A. Blank Endorsement B. Special Endorsement An act of writing a persons name on the back of the instrument is known as C. Endorsement A. Endorser B. Endrosee C. Endorsement 10 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj Signing on back of instrument with direc- tion to pay the amount is known as B. Special Endorsement A. Blank Endorsement B. Special Endorsement The person who transfers an instrument is known as A. Endorser A. Endorser B. Endrosee When a cheque is crossed B. Credited into account A. Cash amount is paid B. Credited into account Banker in case of Cheques are known as A. Drawer B. Drawee B. Drawee C. Holder In Cheques the amount is paid to A. Drawer C. Payee B. Drawee C. Payee In a cheque when two lines are drawn on the left hand upper corner is C. Crossing Cheque A. Bearer cheque B. Order Cheque C. Crossing Cheque When a name of specific bank is written in space between 2 parallel lines are B. Special Crossing A. General Crossing B. Special Crossing The maker in case of cheques are A. Drawer A. Drawer B. Drawee C. Payee A post dates cheque was issued before its due date by the bank and the drawer B. Bank makes a stop payment for that cheque, who is liable? 11 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj A. Drawer B. Bank Any change made in the cheques are known as A. Material Alteration A. Material Alteration B. Mutilation Stale cheques are any cheques that are older than B. 6 months A. 5 months B. 6 months C. 7 months Any overwriting in cheque needs to be confirmed by A. Drawer A. Drawer B. Drawee C. Payee Banks can pay a stale cheque only in case of stolen cheques B. False A. True B. False Any cheque which is torn or damaged is known as B. Mutilation A. Material alteration B. Mutilation Paying Bank dishonors the cheque when the funds are insufficient A. True A. True B. False While stopping the payment of stolen cheques only the details of the cheques B. False has to be provided by the client A. True B. False Only a lost or stolen cheque can be A. True stopped 12 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj A. True B False Civil Code or civil transaction law per- tains to commercial transaction B. False A. True B. False ABC and Company is a natural person B. False A. True B. False Every Interaction between the bank and the customer is called transaction A. True A. True B. False Banks hire lockers to their customers. Legally, banker is A. Bailor D. Lessee B. Bailee C. Lessor D. Lessee Mr A has taken a loan from the FAB Bank. In this example FAB will be A. Debtor B. Creditor B. Creditor C. Principal D. Agent is used when the bank takes physical possession of any moveable assets A. Pledge A. Pledge B. Hypothecation C. Mortgage D. None Mr B has given his cheque for collection to the bank. Legally, bank is a D. Agent A. Debtor B. Creditor 13 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj C. Principal D. Agent The one who owes is called a "Debtor" A. True A. True B. False Rights of the customer are duties of the Banker A. True A. True B. False Banks in UAE are required to send a Bank statement to the customer -------, unless there is an agreement to the con- trary A. every 1 month A. every 1 month B. every 3 months C. will only send if customers asks D. bak discretion Which of the following POA is unlimited in scope and allows the agent to do any financial transaction on behalf of the prin- cipal A. General POA A. General POA B. Specific POA C. Bank Mandate D. All of them Bank shall have the right to withhold the financial securities deposited and refrain from returning same until recovery of its right C. Banker's Lien A. Power of Attorney B. Bank mandate C. Banker's Lien D. Set off clause An Authority in writing given by a person to Bank to operate a specific account C. Bank Mandate A. General POA B. Specific POA 14 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj C. Bank Mandate D. Agency A promise binds the maker unless he dies or become bankrupt A. True A. True B. False A contract formed by one party making a false statement to the other to induce the later into it. The contract is formed by B. Misrepresentation A. Duress B. Misrepresentation C. Mistake D. Coercion All agreements are contracts, but all con- tracts are not agreements B. False A. True B. False ------ may be an act of doing something or not doing something or a promise to do or not do something A. Consideration A. Consideration B. Offer C. Acceptance D. Promise An advertisement is considered an offer B. False A. True B. False The termination of a contractual relation- ship between the parties is known as A. Dissolution of a contract A. Dissolution of a contract B. Breach of a contract C. Both D. None The sum specified in the contract rep- resenting the actual loss, when there is breach of contract 15 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj A. Damages B. Liquidated damages B. Liquidated damages C. Penalty D. Specific performance A contract which has no legal effect is known as A. Void contract A. Void contract B. Valid contract C. Voidable contract D. Non binding contract An implied contract us the one which the agreement is made in words or spoken B. False A. True B. False Order of the court restraining a person from doing some act A. specific performance C. injunction B. penalty C. injunction D. none ------- defines internal rules of behavior of the company A. Memorandum of Association B. Articles of association B. Articles of association C. Board of Directors D. Board resolution Company in the free zone with only one shareholder is known as A. Free Zone Company B. Free Zone establishment B. Free Zone establishment C. Simple Commandite Comoany D. Holding company The Share of -------- company is offered to general public for subscription D. None A. Private Limited Company B. Limited Liability Company 16 / 24  CBO Paper 1 Study online at https://quizlet.com/_e9honj C. Simple Commandite Company D. None The UAE national shareholding means, at least ------ % of the capital in compa- nies under CCL must be held by UAE nationals C. 51 A. 25 B. 50 C. 51 D. 100 Defines the constitution, powers and a activities of a company A. Commercial Companies Law B. Memorandum of Association B. Memorandum of Association C. Articles of Association D. Board of directors For a company to be at least six sigma level, DMPO should be 3.4 A. True A. True B. False Opening a deposit account within the Turn Around Time (TAT) promised to cus- tomer is an. element of service quality in A. True banking A. True B. False QMS looks at two elements of service quality: Reliability and Tangibles B. False A. True B. False --------- is the first quality management system to be implemented by a bank A. Lean B. 5s B. 5s C. Six Sigma D. TQM 17 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj As per lean methodology there can be ------- wastages in a process C. 7 A. 10 B. 2 C. 7 Being courteous and nice to customer is not considered to be an element of B. False service quality in banking A. True B. False In the 5s QMS, shine ensures what is needed for a job is in place and easy to B. False find, use and put back A. True B. False Which of the following is not. principle of TQM A. Quality is responsibility of everyone D. Profit motive B. Continual improvement C. Kaizen D. Profit motive The definition of quality Is producing goods and services as per the specifica- A. True tion of the customer A. True B. False ------- model is used in TQM A. DMAIC D. PDCA B. DAC C. PCA D. PDCA when the customer is talking interrupt the customer if you feel you have understood B. False his problem A. True B. False 18 / 24  CBO Paper 1 Study online at https://quizlet.com/_e9honj Body Language is part of which stage of customer interaction cycle A. Receiving A. Receiving B. Helping C. Closing D. Listening Open questions are questions with Yes or No B. False A. True B. False You should always ask ------ questions to the customer A. closed B. open B. open C. depends on the situation D. none "How can I help you" is an example of ----- question B. open A. closed B. open Turnaround time is calculated from the time input is received by the bank to the A. True time output is generated by the bank A. True B. False Ali has called up with a complaint that his account is not yet opened. On fur- ther checking in the system you find that he gave the documents just yesterday to the branch. The normal TAT for account A. Inform Ali to wait till TAT gets over opening in the bank is 4 days. In this case what will you do? A. Inform Ali to wait till TAT gets over B. Lodge a complaint in the CRM system C. Depends on what your boss says If the customer is unhappy with the res- olution provided on the complaint, banks 19 / 24 CBO Paper 1 Study online at https://quizlet.com/_e9honj can still close the complaint B. False A. True B. False When dealing with an angry customer, the focus is first on diffusing the anger A. True A. True B. False When you have to say not to a customer, it is preferable to use positive language A. True A. True B. False As per the general ethical principles in banking, impartiality requires that banks should not make any discrimination to- wards their customers based on their A. True nationality, religion, financial and social standing and gender A. True B. False -------- is the set of moral principle by which people conduct themselves per- sonally, socially, or professionally C. Ethics A. Laws B. Religion C. Ethics Any act that violates laws and regulation is considered to be unethical act A. True A. True B. False Which of the following is NOT a factor affecting the reputation of the bank? A. Corporate governance D. Profitability B. Management integrity C. Customer satisfaction D. Profitability 20 / 24  CBO Paper 1 Study online at https://quizlet.com/_e9honj As per the general ethical principles in banking transparency requires that banks should inform their customers in an open, easily understandable and clear way regarding the underlying right A. True and responsibilities, benefits and risks attached to the products and services offered to them A. True B. False "do you want a mortgage loan" is an example of ----- question A. Open B. Closed B. Closed C. High value D. Low value QMS looks at ---- attribute of quality A. Reliability A. Reliability B. Tangibles C. Assurance D. Empathy Which of the following is NOT a right strategy to deal with angry customer A. Let them shout and diffuse their anger D. interrupt them before they finish B. listen actively C. use nonverbal skills such as eye con- tact and nods D. interrupt them before they finish Which of the following is NOT a basic principle of effective communication A. Keep it simple D. Always say yes to the customer B. Come prepared C. Put yourself in the customer's shoes D. Always say yes to the customer Lean is all about the elimination of D. wastages A. erros B. complaints 21 / 24  CBO Paper 1 Study online at https://quizlet.com/_e9honj C. process issues D. wastages When you have to say NO to customer, always use ----- language A. Positive A. Positive B. Negative C. Open D. Closed Reliability is all about A. look and feel of branch C. ensuring that you meet promised time- B. being polite to the customer line to the customer C. ensuring that you meet promised time- line to the customer D. product knowledge In the DMAIC model ----- stage is used to define the process to be improved A. Measure C. Define B. Analyse C. Define D. Control Which of the following is NOT an attribute of service quality A. Reliability B. Profitability B. Profitability C. Responsiveness D. Tangibles The first step in customer interaction cy- cle is ----- the customer A. Listening D. Receiving B. Closing C. Helping D. Receiving Which of the following is a model used in Total Quality Management (TQM) A. PDCA A. PDCA B. DMAIC 22 / 24  CBO Paper 1 Study online at https://quizlet.com/_e9honj C. TIMQOOD D. 5s In lean methodology ----- is producing more than what the customer wants A. Motion D. Overproduction B. Inventory C. Defect D. Overproduction In the 5s QMS, ---- involves ensuring place for everything and everything in its place (PEEP) B. Set in order A. Standardise B. Set in order C. Shine D. Sustain Customer complaints are logged into the ------ system A. Core banking B. Customer Relationship Management B. Customer Relationship Management (CRM) (CRM) C. Sales D. Depends on the bank Which of the following is the first quality management system to be implemented A. 5s A. 5s B. Six sigma C. Business process reengineering D. Depends on the company As per the 85-15 rule, 85% of the quality problem is due to ------ A. People B. Process B. Process C. Product D. Position Which of the following is a factor that does NOT affect the reputation of a bank? 23 / 24  CBO Paper 1 Study online at https://quizlet.com/_e9honj A. Corporate governance B. Legal / regulatory compliance D. Balance sheet C. Customer satisfaction D. Balance sheet Closed questions are quests that ----- A. Allow the customer to talk B. Have answers as Yes or No B. Have answers as Yes or No C. Are short D. Depends on the situation To achieve Six Sigma, a process must not produce more than ------ defects per million opportunities (DPMO) A. 3.4 A. 3.4 B. 10 C. 14 D. 6.8 24 / 24