Capital One Assessment Test Fundamentals and Core Concepts 2

Question 1

Capital One is primarily classified as which type of financial institution?

Accepted Answer

Bank holding company and credit card issuer

Answer

Capital One is a bank holding company best known for its credit card products, though it also offers banking, auto loans, and more.

Question 2

Which regulatory body primarily supervises Capital One's banking operations?

Accepted Answer

The Federal Reserve and Office of the Comptroller of the Currency (OCC)

Answer

As a national bank and bank holding company, Capital One is supervised by both the Federal Reserve and the OCC.

Question 3

What does the term 'credit utilization ratio' refer to?

Accepted Answer

The percentage of available credit currently being used

Answer

Credit utilization ratio is the proportion of your revolving credit limit that you are actively using, a key factor in credit scoring.

Question 4

In banking, what is 'KYC' an abbreviation for?

Accepted Answer

Know Your Customer

Answer

KYC (Know Your Customer) is a mandatory process banks use to verify client identity and assess risk of illegal activity.

Question 5

A customer's FICO score of 720 would typically be categorized as:

Accepted Answer

Good (670–739)

Answer

A FICO score of 720 falls in the 'Good' range (670–739), making the borrower eligible for competitive interest rates.

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