Question 1

What is profit defined as in financial services?

Accepted Answer

Income minus costs

Answer

Income plus costs

Answer

Income divided by costs

Answer

Income times costs

Question 2

What is a primary source of income for financial services providers that lend money?

Accepted Answer

Interest income

Answer

Non-interest income

Answer

Fees and commissions

Answer

Investment income

Question 3

What does net interest income represent?

Accepted Answer

The difference between interest receivable and interest payable

Answer

The sum of interest charges

Answer

Total expenses paid

Answer

Total income collected

Question 4

What is ring-fencing in the context of financial services?

Accepted Answer

Separating risky banking operations from retail banking

Answer

Combining all banking services

Answer

Expanding into new markets

Answer

Reducing the number of bank branches

Question 5

What is a key expectation of financial services providers to ensure responsible lending?

Accepted Answer

Undertake affordability checks

Answer

Limit customer access to loans

Answer

Charge higher interest rates

Answer

Avoid providing information

Question 6

What does ESG stand for in financial services?

Accepted Answer

Environmental, Social, and Governance

Answer

Equity, Sustainability, and Growth

Answer

Environmental, Safety, and Guidelines

Answer

Economic, Social, and Government

Question 7

Why is financial sustainability important to shareholders of financial services providers?

Accepted Answer

It ensures stability and regular returns on their investments

Answer

It guarantees high profits every year

Answer

It provides immediate liquidity

Answer

It minimizes competition in the market

Question 8

What type of income can financial services providers generate from transaction fees?

Accepted Answer

Non-interest income

Answer

Interest income

Answer

Equity income

Answer

Investment income

Question 9

What is a critical responsibility of borrowers in financial transactions?

Accepted Answer

Provide accurate and complete information when applying for credit

Answer

Negotiate lower interest rates

Answer

Delay repayments until convenient

Answer

Hide financial difficulties from lenders

Question 10

Which of the following is an example of an environmental aspect of the ESG framework?

Accepted Answer

Reducing energy use

Answer

Enhancing customer service

Answer

Increasing advertising spend

Answer

Improving employee benefits

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