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 III introduced the LCR requirement, mandating banks hold sufficient high-quality liquid assets to cover net cash outflows over a 30-day stress period.

Question 2

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

Accepted Answer

Net interest income divided by average earning assets

Answer

NIM equals net interest income divided by average earning assets, measuring how effectively a bank generates income from its interest-bearing assets.

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

The BSA requires banks to file a CTR with FinCEN for any cash transaction — or series of related transactions — exceeding $10,000 in a single business day.

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

External fraud covers losses from acts by third parties such as unauthorized system access, theft, and forgery.

Question 5

In banking operations, 'float' refers to:

Accepted Answer

Funds in transit between the deposit and collection of a check

Answer

Float represents money that is simultaneously counted in two accounts during the check-clearing process, reflecting the delay between deposit and final settlement.

(CBP) Certified Banking Professional Practice Test

(CBP) Certified Banking Professional Practice Test

CBP Banking Operations Management 2