CBP Banking Operations Management 2

Question 1

Which regulatory framework requires U.S. banks to maintain a minimum Liquidity Coverage Ratio (LCR) to withstand a 30-day stress scenario?

Accepted Answer

Basel III Accord

Answer

Basel II Accord

Answer

Dodd-Frank Act Section 165

Answer

FDIC Improvement Act

Question 2

A bank's net interest margin (NIM) is calculated as:

Accepted Answer

Net interest income divided by average earning assets

Answer

Net interest income divided by total assets

Answer

Interest income minus non-interest expense divided by total loans

Answer

Total revenue minus operating costs divided by total deposits

Question 3

Under the Bank Secrecy Act (BSA), a Currency Transaction Report (CTR) must be filed for cash transactions exceeding:

Accepted Answer

$10,000

Answer

$5,000

Answer

$7,500

Answer

$25,000

Question 4

Which operational risk event type, as defined by Basel II, involves unauthorized access to bank systems resulting in fraudulent fund transfers?

Accepted Answer

External fraud

Answer

Internal fraud

Answer

Clients, products, and business practices

Answer

Execution, delivery, and process management

Question 5

In banking operations, 'float' refers to:

Accepted Answer

Funds in transit between the deposit and collection of a check

Answer

Overnight borrowing between banks

Answer

The spread between bid and ask prices on securities

Answer

Excess reserves held above the required minimum

Question 6

A bank implements a 'dual control' policy for vault access primarily to:

Accepted Answer

Prevent internal fraud and ensure accountability

Answer

Speed up cash counting procedures

Answer

Reduce errors in currency denomination sorting

Answer

Comply with Federal Reserve currency destruction guidelines

Question 7

Which metric best measures the efficiency of a bank's operational cost structure relative to its revenue?

Accepted Answer

Efficiency ratio

Answer

Return on assets (ROA)

Answer

Tier 1 capital ratio

Answer

Loan-to-deposit ratio