#1
Which of the following is NOT a primary function of a bank?
Providing investment advice
ExplanationBanks primarily focus on financial transactions and services, not investment advice.
#2
What does ROI stand for in finance?
Return On Investment
ExplanationROI is a measure of the profitability of an investment, calculated as the ratio of the net gain or loss to the initial investment.
#3
What is the main function of a commercial bank?
Accepting deposits and granting loans
ExplanationCommercial banks play a crucial role in the economy by accepting deposits from customers and providing loans to individuals and businesses.
#4
What is the role of a financial manager?
All of the above
ExplanationFinancial managers handle various responsibilities, including financial planning, decision-making, and risk management.
#5
What is the primary responsibility of a central bank?
All of the above
ExplanationCentral banks oversee monetary policy, issue currency, regulate banks, and maintain financial stability.
#6
What does the term 'liquidity' refer to in financial management?
The ability to convert assets into cash quickly
ExplanationLiquidity measures an entity's ability to meet short-term obligations by converting assets into cash without significant loss.
#7
What is the purpose of Basel III regulations?
To reduce banking risks
ExplanationBasel III aims to enhance the stability of the banking system by imposing stricter regulations to mitigate various risks.
#8
What is the purpose of SWIFT codes in banking?
To identify specific banks during international transactions
ExplanationSWIFT codes are used to uniquely identify banks and facilitate secure international financial transactions.
#9
What is the formula to calculate the Debt-to-Equity ratio?
Total Debt / Total Equity
ExplanationDebt-to-Equity ratio is calculated by dividing total debt by total equity, providing insight into a company's financial leverage.