Which one of the following is an internal control component?
A. Compliance control
B. Control activities
C. Financial Reporting Controls
D. Communication channels and network
A statement of cash flows in a financial report that shows incoming and outgoing money during a particular period (often monthly or quarterly). It does not include _________ items such as depreciation. The statement is a useful tool for determining the short-term viability of a company, particularly its ability to pay bills.
A. Non-cash
B. Depreciation related
C. Depletion related
D. Lon-term debt
Employee benefits are generally considered non-wage compensations designed to enhance any employee's salary compensation. However, it should be noted that payroll is one of the largest operating expense in many banks. Losses can occur if a bank does not have adequate controls over this function. The largest risk/s bank face in this function is/are:
A. Making salary payments to employees no longer on the payroll
B. Paying employees for unearned overtime, sick time, or vacation time
C. Entering improper or unauthorized salary
D. All of these
_____________ insures two lives under one policy. Death benefits are paid to the surviving insured. The surviving insured usually has the option of purchasing an individual whole life policy of the same face amount without providing evidence of insurability.
A. Joint whole life policies
B. First-to-die policies
C. Modified premium whole life policies
D. A and B are one and the same category
It provides additional living expenses when the home is unlivable, so home owners can continue to live comfortably. While the home is made livable, the homeowner policy will pay for items such as rented rooms at a hotel, restaurant meals, and laundry expenses. What is it?
A. Dwelling
B. Personal property
C. Loss of use
D. Medical coverage
Under the principles of bank accounting, loans reported as non-performing have not yet been charged off as _____________.
A. Income
B. Expense
C. Losses
D. prepaid
Agents that represent one company exclusively are called:
A. Independent Agents
B. Captive Agents
C. Exclusive Agents
D. Detached Agents
If a corporation has an asset sensitive gap in a rising rate environment, which of the following would be considered an appropriate hedging strategy to prevent a decrease in net interest income?
A. Take no action
B. Purchase an interest rate floor
C. Enter into an interest rate swap to receive fixed and pay floating rate payments
D. Enter into an interest rate swap to receive floating and pay fixed rate payment
Which of the following are generally considered to be characteristics of savings deposits? Interest bearing.
II. No stated maturity.
III.
Penalty for withdrawal.
A.
I and II only.
B.
II and III only.
C.
II and III only.
D.
I, II, and III.
If investment returns are very poor, this could lead to:
A. Down in the market share of that particular investment
B. Policy Lapsing
C. Stock exchange collapse
D. Minimum premium
