CIB Professional Banking Examination

Sample Banking & Finance practice questions

Try these 12 questions from different topics. Open "Show answer" to check yourself and read the explanation.

1. Question 1 · Credit Risk Management

   Which information is most important before approving a new business loan?

   1. A.The colour of the business logo
   2. B.The personal popularity of the loan officer
   3. C.The number of advertisements placed by the borrower
   4. D.The borrower risk profile, purpose of the credit and realistic source of repayment
   Show answer

   Answer: D. The borrower risk profile, purpose of the credit and realistic source of repayment

   Sound credit granting requires a clear understanding of the borrower, transaction structure and repayment capacity.

2. Question 2 · AML, Ethics & Professionalism

   A transaction pattern is suspicious under the bank AML procedure. What should the employee do?

   1. A.Escalate it through the confidential reporting process without tipping off the customer
   2. B.Warn the customer that a report will be filed
   3. C.Delete the transaction record
   4. D.Ignore it unless a crime has already been proven in court
   Show answer

   Answer: A. Escalate it through the confidential reporting process without tipping off the customer

   AML systems depend on documented internal escalation, appropriate reporting and protection against tipping off.

3. Question 3 · Banking Operations & Controls

   Why should an independent credit-review function avoid reporting to staff who originate loans?

   1. A.To ensure every application is automatically rejected
   2. B.To reduce conflicts of interest and provide objective oversight
   3. C.To prevent the board from receiving risk information
   4. D.To replace all borrower monitoring
   Show answer

   Answer: B. To reduce conflicts of interest and provide objective oversight

   Independent review strengthens governance and helps management identify weaknesses in credit decisions and portfolios.

4. Question 4 · Bank Risk & Treasury Management

   Liquidity risk is the risk that a bank:

   1. A.Makes losses on its foreign currency positions
   2. B.Faces higher taxes
   3. C.Cannot meet its obligations as they fall due
   4. D.Loses customers to competitors
   Show answer

   Answer: C. Cannot meet its obligations as they fall due

   Banks hold liquid assets and monitor funding gaps.

5. Question 5 · Ghana Banking Regulation

   Banks and specialised deposit-taking institutions in Ghana are licensed under the:

   1. A.Companies Act, 2019 (Act 992) and the Registrar's rules
   2. B.Securities Industry Act, 2016
   3. C.Banks and SDIs Act, 2016 (Act 930)
   4. D.Insurance Act, 2021
   Show answer

   Answer: C. Banks and SDIs Act, 2016 (Act 930)

   The Bank of Ghana licenses and supervises them under Act 930.

6. Question 6 · Banker–Customer Relationship & Instruments

   The basic legal relationship between a banker and a customer with a credit balance is that of:

   1. A.Trustee and beneficiary, as in Foley v Hill
   2. B.Principal and agent only
   3. C.Debtor and creditor
   4. D.Landlord and tenant
   Show answer

   Answer: C. Debtor and creditor

   Foley v Hill held the bank is a debtor; it is not a trustee of the money.

7. Question 7 · International Trade Finance

   Documentary credits are governed internationally mainly by the ICC's:

   1. A.Incoterms 2020, which set out delivery obligations
   2. B.URC 522
   3. C.ISA 700
   4. D.UCP 600
   Show answer

   Answer: D. UCP 600

   URC 522 governs documentary collections.

8. Question 8 · Digital Banking & Payment Systems

   GhIPSS is the company that operates Ghana's:

   1. A.Stock exchange trading platform for listed companies
   2. B.National interbank payment and settlement systems
   3. C.Tax collection system
   4. D.Pension scheme
   Show answer

   Answer: B. National interbank payment and settlement systems

   Its services include gh-link, ACH and instant pay.

9. Question 9 · Bank Governance & Financial Analysis

   The CAMELS rating system assesses capital adequacy, asset quality, management, earnings, liquidity and:

   1. A.Sensitivity to market risk
   2. B.Size of the branch network and number of staff
   3. C.Shareholder satisfaction
   4. D.Corporate social responsibility
   Show answer

   Answer: A. Sensitivity to market risk

   Supervisors use CAMELS to rate bank soundness.

10. Question 10 · Marketing & Customer Service in Banking

    The extra "Ps" in the services marketing mix are people, process and:

    1. A.Promotion through social media and radio adverts
    2. B.Physical evidence
    3. C.Profit
    4. D.Payment
    Show answer

    Answer: B. Physical evidence

    The 7Ps are product, price, place, promotion, people, process and physical evidence.

11. Question 11 · Microfinance & Financial Inclusion

    Group lending in microfinance relies mainly on:

    1. A.Large physical collateral such as land and buildings
    2. B.Government guarantees for every loan
    3. C.Joint liability and peer pressure among group members
    4. D.Very high interest rates only
    Show answer

    Answer: C. Joint liability and peer pressure among group members

    Group members screen and support each other.

12. Question 12 · Monetary Economics & Financial Markets

    If banks must hold 10% of deposits as reserves, the simple money multiplier is:

    1. A.0.1
    2. B.1
    3. C.10
    4. D.100
    Show answer

    Answer: C. 10

    Money multiplier = 1 ÷ reserve ratio.