Banking Exam Study Guide 2026

Market capitalization is calculated by multiplying a company's total outstanding shares by the current market price per share.

The year 1995 saw the introduction of this program.

The Glass-Steagall Act of 1933 separated commercial banking from investment banking to reduce conflicts of interest, and was largely repealed by the Gramm-Leach-Bliley Act in 1999.

A savings bank account that remains inactive for more than 24 months (i.e., no customer-initiated transactions like deposits or withdrawals) is typically classified as a dormant account. Banks classify such accounts to protect customers from potential fraud and to manage their operational risks. To reactivate a dormant account, customers usually need to complete KYC formalities.

The current ratio, calculated as current assets divided by current liabilities, is a key measure of short-term liquidity. A ratio below 1.0, such as 0.90, indicates that the company has fewer current assets than current liabilities, suggesting a potential challenge in paying its debts as they come due within the next year.

Investment banks help corporations and governments raise capital by underwriting and distributing securities such as stocks and bonds.