Capital One Assessment Test Fundamentals and Core Concepts 5

Question 1

What type of inquiry does NOT affect a consumer's credit score?

Accepted Answer

A credit card company doing a pre-approval check

Answer

Pre-approval checks and rate shopping initiated by lenders are soft inquiries and do not impact credit scores.

Question 2

Capital One's headquarters is located in which U.S. state?

Accepted Answer

Virginia

Answer

Capital One Financial Corporation is headquartered in McLean, Virginia, in the Washington D.C. metro area.

Question 3

What is 'fraud detection' most commonly based on in modern banking systems?

Accepted Answer

Behavioral analytics and machine learning models identifying anomalous transactions

Answer

Modern fraud detection uses real-time machine learning models that flag transactions deviating from a customer's established spending patterns.

Question 4

Which best describes 'customer lifetime value' (CLV) in a financial services context?

Accepted Answer

The predicted net profit attributed to the entire future relationship with a customer

Answer

CLV estimates the total revenue or profit a customer will generate over the course of their relationship with the bank.

Question 5

A bank's 'delinquency rate' measures:

Accepted Answer

The proportion of loans on which borrowers are behind on payments

Answer

Delinquency rate tracks the percentage of loans where borrowers are overdue on payments, a key indicator of portfolio health.

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