Preview Questions Retail Banker | Role Specific Skill

Question 1: Which of the following is the key requirement of the Basel III framework regarding capital adequacy?

Which action should you take?

Choose only one option

Banks must hold at least 8% of their total assets in Tier 2 capital.

Banks must hold a minimum of 3% of their risk-weighted assets in Tier 1 capital.

Banks must hold 10% of their risk-weighted assets in common equity.

Banks must maintain a liquidity coverage ratio (LCR) of at least 100%.

Question 2: How would you advise a customer who is considering an adjustable-rate mortgage (ARM) but is concerned about rising interest rates?

Which action should you take?

Choose only one option

Consider the initial rate period and calculate potential rate increases over time

Focus on refinancing options available at the end of the ARM period

Avoid ARMs and opt for a fixed-rate mortgage

Recommend a larger down payment to reduce the loan balance

Question 3: How should a Retail Banker handle discrepancies in a borrower's submitted financial documents?

Which action should you take?

Choose only one option

Inform borrower and request corrections

Reject the loan immediately

Finalize loan approval with assumptions

Ignore minor discrepancies

Question 4: How does MiFID II impact the disclosure requirements for investment firms in the retail banking sector?

Which action should you take?

Choose only one option

It reduces transparency for retail investment products

It requires disclosure of future interest rate changes

It mandates full disclosure of costs, risks, and investment products to retail clients

It focuses only on corporate clients, not retail clients

Question 5: Under the Foreign Account Tax Compliance Act (FATCA), what is required of retail banks when dealing with international clients?

Which action should you take?

Choose only one option

Limit transactions to under $10,000

Disclose foreign transactions of U.S. citizens

Restrict foreign clients from opening accounts

Offer foreign currency accounts

Question 6: How does a FHA loan differ from a VA loan in terms of eligibility and borrower requirements?

Which action should you take?

Choose only one option

FHA loans have higher down payment requirements than VA loans

VA loans have stricter income requirements compared to FHA loans

FHA loans require mortgage insurance, while VA loans do not

FHA loans are for first-time homebuyers, while VA loans are specifically for military veterans