Banking Study Guide 2026
Everything you need to pass the Banking exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 Banking Exam Format at a Glance
📚 Banking Topics to Study (69)
✍️ Sample Banking Questions & Answers
1. What is a 'correspondent bank'?
Correspondent banks act as intermediaries for other financial institutions, providing services like wire transfers and foreign exchange in locations where the other bank has no presence.
2. Which term describes the risk that a counterparty defaults between the trade date and the settlement date of a foreign exchange transaction?
Herstatt risk (also called settlement or delivery risk) arises when one party delivers currency before receiving the reciprocal payment, exposing it to counterparty default.
3. Which of the following is a common method banks use to verify a new customer's identity during digital onboarding?
Modern digital KYC onboarding uses AI to scan government-issued IDs and liveness detection to confirm the person is physically present, not using a photo.
4. Which of the following is an example of a negative pledge covenant?
A negative pledge covenant prevents the borrower from using assets as collateral for other debt, protecting the existing lender's security position.
5. In Incoterms, what does 'CIF' (Cost, Insurance, and Freight) mean?
Under CIF, the seller arranges and pays for freight and insurance to the named destination port, but risk transfers to the buyer once goods are loaded on the ship at the origin port.
6. What is the value of continuing education in credit analysis for Banking professionals?
Continuing education ensures professionals stay current with the latest developments, standards, and best practices in their field.