FIN 201 CBT PRACTICE

1. Define the key benefit of capital adequacy in banking operations.

2. Define the key factor influencing customer demand for banking services.

3. State the challenge faced by customers due to insufficient bank staff.

4. Highlight a critical metric for measuring bank performance.

5. Identify the component critical to financial intermediation success.

6. Emphasize the service banks provide for transferring funds between locations.

7. Emphasize the feature of banking automation reducing redundancy in human labor.

8. Describe the service enabling customers to access funds exceeding their deposits.

9. Recognize the theory explaining money creation by the banking system as a whole, not individual banks.

10. Highlight the advantage of online banking for customers.

11. Specify a disadvantage of banking automation.

12. State the primary factor contributing to economies of scale in banking.

13. Indicate the method banks use to reduce errors in service delivery.

14. Mention the key advantage of mergers for smaller banks.

15. Indicate the tool used by banks to manage financial risks effectively

16. Identify the primary role banks play in a market-based economy.

17. Highlight the primary cause of credit rationing in banking.

18. Emphasize the undesirable output in banking operations.

19. Indicate the critical output resulting from customer deposits and bank lending.

20. Mention the key advantage of mergers for smaller banks.

21. Emphasize the main advantage of branch automation.

22. Emphasize the cost banks incur due to automation maintenance.

23. Indicate the tool used by banks to manage financial risks effectively.

24. Define the focus of performance measurement in banking.

25. Define the system ensuring real-time financial transactions without physical bank visits.

26. Mention the process banks use to mobilize funds from surplus units to deficit units.

27. Recognize the benefit derived by banks from mergers and acquisitions.

28. Identify the output commonly associated with banking operations.

29. Describe the element ensuring banks meet operational challenges

30. State the major challenge associated with mergers and acquisitions in banking.

31. Point out the type of reserve maintained by commercial banks due to regulatory requirements.

32. Highlight the service enabling banks to attract more customers by offering consultancy.

33. Mention the factor affecting demand for banking services due to poor accessibility of branches.

34. Point out the reason banks impose transaction costs on accounts.

35. Indicate the advantage customers gain from economies of scale in banking.

36. Identify the primary reason banks collect reserve funds.

37. Highlight the component that evaluates the efficiency of resource utilization in banking.

38. Highlight the term describing the process through which banks create new credits when loans are issued.

39. State the primary goal of operating costs in banking.

40. Emphasize the essential source of funds for commercial banks