NAB Business Banking and Corporate Services 1

Question 1

Which type of NAB business account is specifically designed to help companies manage high-volume daily transactions with no monthly account fees based on transaction thresholds?

Accepted Answer

NAB Business Everyday Account

Answer

The NAB Business Everyday Account is designed for businesses with frequent daily transactions and offers fee structures suited to high-volume activity.

Question 2

When a business client applies for a NAB Trade Finance facility, which document is typically required to evidence the underlying commercial transaction?

Accepted Answer

A commercial invoice or letter of credit

Answer

Trade finance facilities require evidence of a commercial transaction, most commonly a commercial invoice or letter of credit issued between buyer and seller.

Question 3

A business customer wants to reduce the risk of currency fluctuation when importing goods from overseas. Which NAB product would best address this need?

Accepted Answer

NAB Foreign Exchange Forward Contract

Answer

A Foreign Exchange Forward Contract locks in an exchange rate for a future date, protecting businesses from adverse currency movements when importing.

Question 4

What is the primary purpose of a NAB Corporate Mastercard issued to a business?

Accepted Answer

To allow employees to make authorized business purchases with centralized billing

Answer

A Corporate Mastercard enables employees to make approved business expenditures while consolidating charges onto a single corporate billing statement.

Question 5

When assessing a business loan application, which financial ratio does NAB primarily use to evaluate a company's ability to service debt from its earnings?

Accepted Answer

Debt Service Coverage Ratio (DSCR)

Answer

The Debt Service Coverage Ratio compares a company's net operating income to its total debt obligations, indicating whether earnings are sufficient to cover loan repayments.

(NAB) National Australia Bank Practice Test

(NAB) National Australia Bank Practice Test

NAB Business Banking and Corporate Services 1