Question 1

In the common law Principle of branch separateness meant :

Accepted Answer

the branches of banks had considerable autonomy from their head office

Answer

Non of the mentioned

Answer

the branch must follow the subsidiary

Question 2

Public deposit-taking and granting credits on its own account and providing customers with payment services. Activities termed as ‘core banking’. This the legal definition in

Accepted Answer

The EC approach

Answer

Command approach

Answer

The UK approach

Question 3

The reasons for the fall of multifunctional banks

Accepted Answer

Thesebanks are inextricably linked with the all-pervasive issue of moral hazard andthe ever-present threat of shifting the burden of imprudent bank management totaxpayers via expensive bailouts

Answer

Weak demand

Answer

Lack of trust among public

Question 4

4. Why banks became too-big-to-fail

Accepted Answer

Because of numerous quantitative studies of the‘subsidy’3’ provided by the implicit government bail-out guarantee to the larger banks perceived as TBTF

Answer

Because of public support

Answer

Non of the mentioned

Question 5

The view that ‘too much’ competition could undermine instead of fostering financial stability”. This statement is

Accepted Answer

true

Answer

false

Question 6

Why are bank mergers and acquisitions becoming more common today

Accepted Answer

All of the mentioned

Answer

Cost savings and efficiency gains

Answer

Motives of grandeur

Answer

Economies of scale

Question 7

The legal implications of banks mergers and acquisitions are:

Accepted Answer

The increased concentration through mergers and acquisitions have left public policy and the law as an expression of public policy far behind & The complexity of a breed of large multinational, multifunctional banks means that if seriously distressed, any wind up is fraught with enormous difficulties

Answer

The complexity of a breed of large multinational, multifunctional banks means that if seriously distressed, any wind up is fraught with enormous difficulties

Answer

The increased concentration through mergers and acquisitions have left public policy and the law as an expression of public policy far behind

Answer

Unfulfillment of the BOD legal requirements

Question 8

The problems of law and compliance for banking groups are

Accepted Answer

Defining boundaries of a corporate group when a legislative scheme is to have group-wide coverage & Multifunctional banking groups also throw up their own regulatory or legal gaps and overlaps

Answer

Multifunctional banking groups also throw up their own regulatory or legal gaps and overlaps

Answer

Unfulfillment of central banks law

Answer

Defining boundaries of a corporate group when a legislative scheme is to have group-wide coverage

Question 9

The definition of digital banking is

Accepted Answer

A digital bank refers to a bank which offers financial products and services that are processed end-to-end through a digital platform and/or electronic channels with no physical branch/sub-branch or branch-lite unit offering the same

Answer

Open banking activities licensed by CBB

Answer

A digital bank refers to a bank which offers financial products and services that are processed end-to-end through a digital platform and/or electronic channels with physical branch/sub-branch .

Question 10

The legal systems in the world today

Accepted Answer

All of the mentioned

Answer

Common law

Answer

Civil law

Answer

Religious law

Question 11

Multifunctional banking came into full force back again in the 1980s due to

Accepted Answer

All are correct

Answer

Introduction of new technology

Answer

Innovations in banking and financial techniques

Answer

Financial liberalization

Question 12

The emergence of the multifunctional bank has thrown up many legal problems

Accepted Answer

ALL ARE CORRECT

Answer

The conflict of interest issues as when a bank is a market maker in certain securities and recommends the securities to its core bank customers and the associated issues with agent-principal and fiduciary relationships

Answer

Concentration of economic power and competition and anti trust issues

Answer

Risk that was the core of the US Glass-Steagall Act that separated the core banking and investment functions was now back in play

Question 13

Bancassurance : Bancassurance– is the selling of insurance and banking products through the same channel, most commonly through bank branches selling insurance. Its advantages:

Accepted Answer

ALL ARE CORRECT

Answer

opportunity to sell insurance together with some banking products e.g. selling life insurance to mortgage borrowers.

Answer

extensive customer base that banks have

Answer

existing staff of banks used as sales force

Question 14

Banks and insurance company are set up as separate entities (subsidiaries) within a corporate group. The legal issues which are facing them:

Accepted Answer

Each business has to be separately capitalized & Regulatory regimes differ e.g. calculation of solvency varies fundamentally, with banks it is a function of the assets (loans) whereas with insurers it is a function of the risk that they may be called on to meet liabilities of policyholders.

Answer

Regulatory regimes differ e.g. calculation of solvency varies fundamentally, with banks it is a function of the assets (loans) whereas with insurers it is a function of the risk that they may be called on to meet liabilities of policyholders.

Answer

Each business has to be separately capitalized.

Answer

All of the mentioned are not correct

Question 15

Crypto asset regulated in vol

Accepted Answer

6

Answer

4

Answer

2

Answer

1

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