Banking Cheat Sheet 2026

The 30 highest-yield Banking facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. In Banking practice, what is the best approach to quality improvement in digital banking? → Use data-driven methods with measurable outcomes
2. In investment banking, what is a 'bulge bracket' bank? → One of the largest, most prestigious global full-service investment banks
3. Under FinCEN's Customer Due Diligence (CDD) Rule, banks must identify beneficial owners of legal entity customers who own what percentage or more? → 25%
4. What role does collaboration play in banking fundamentals for Banking professionals? → It enhances outcomes through diverse perspectives and shared expertise
5. What is the value of continuing education in credit analysis for Banking professionals? → It keeps professionals current with evolving standards and practices
6. Which regulation requires large U.S. bank holding companies to submit annual capital plans and stress test results to the Federal Reserve? → Both DFAST and CCAR
7. Which professional attribute is most valued in financial products within the Banking field? → Accountability and commitment to standards
8. A customer's bond portfolio loses value when the issuing company's credit rating is downgraded. This represents which type of risk? → Credit (default) risk
9. Which type of cyberattack involves criminals sending fake emails disguised as legitimate bank communications to steal login credentials? → Phishing
10. A customer calls to report their debit card lost. What is the FIRST action the representative should take? → Immediately deactivate the lost card to prevent unauthorized use
11. A bank sells credit default swaps (CDS) to transfer credit risk off its balance sheet. Which risk does the bank retain regarding the CDS counterparty? → Counterparty credit risk
12. A customer is upset that a transfer they initiated online did not post as expected. What should the representative do BEFORE offering solutions? → Verify the transaction details in the system to understand exactly what occurred
13. The Volcker Rule, part of Dodd-Frank, primarily restricts banks from doing what? → Engaging in proprietary trading and owning hedge funds or private equity funds
14. What distinguishes a Roth IRA from a Traditional IRA regarding taxation? → Roth IRA withdrawals in retirement are tax-free
15. In the context of commercial lending, what is 'enterprise value'? → Total market value of a firm including debt and equity
16. What is 'wire transfer' in banking? → An electronic transfer of funds between bank accounts, domestically or internationally
17. What role does collaboration play in financial products for Banking professionals? → It enhances outcomes through diverse perspectives and shared expertise
18. What does 'charge-off' mean in banking terminology? → The amount a bank removes from its books as a loss when a loan is deemed uncollectible
19. Which of the following best describes 'credit concentration risk'? → Overexposure to a single borrower, sector, or geography
20. A customer wants to wire $15,000 internationally but has never done a wire transfer before. What is the MOST important thing for the banker to explain first? → That wire transfers are typically irrevocable once sent, so all details must be verified
21. What does a negative working capital position typically indicate? → Potential short-term liquidity risk
22. Which concept requires Banking professionals to avoid conflicts of interest? → Objectivity and impartiality
23. What is the key benefit of a no-penalty CD compared to a traditional CD? → It allows early withdrawal without a penalty fee
24. Which of the following scenarios best illustrates 'churning' in a banking or investment context? → Excessively trading a client's account to generate commissions
25. A bank's mobile app crashes for thousands of users during peak hours because its servers cannot handle the load. This is an example of a failure in: → Scalability and infrastructure resilience
26. What is the most important professional competency for Banking certification in anti-money laundering? → Deep knowledge combined with practical application skills
27. A customer tries to log into their mobile banking app but receives a one-time passcode via SMS. This security method is called: → Two-factor authentication (2FA)
28. Under the Equal Credit Opportunity Act (ECOA), which basis for denying credit is explicitly prohibited? → National origin
29. What is the 'prime rate' in U.S. banking? → A benchmark interest rate banks use as a starting point for consumer and business loans
30. Which technology allows customers to make contactless payments by tapping their phone at a point-of-sale terminal? → Near Field Communication (NFC)