Preview Questions Retail Banker | Role Specific Skill

Question 1: In mortgage terms, what does refinancing refer to?

Which action should you take?

Choose only one option

Adjusting the interest rate on the existing loan

Converting fixed-rate loans to variable-rate loans

Replacing an existing loan with a new one

Adding a co-borrower to the loan agreement

Question 2: What does a high loan-to-value ratio (LTV) typically indicate about the credit risk of a mortgage applicant?

Which action should you take?

Choose only one option

Lower risk, as the borrower has significant equity

Neutral risk, as it is an industry standard

Higher risk, as the borrower has less equity in the property

No impact on risk

Question 3: In the context of investment advice, how would a retail banker assess the risk tolerance of a client?

Which action should you take?

Choose only one option

By focusing solely on the client's current income and employment status

By analyzing the client's age and life expectancy without considering their financial goals

By evaluating the client's investment objectives, time horizon, and emotional response to market fluctuations

By recommending a diversified portfolio based solely on historical returns without assessing risk tolerance

Question 4: In retail banking, how do you ensure compliance while providing customer service?

Which action should you take?

Choose only one option

Stay updated on regulatory requirements and explain them to clients when necessary

Rely on the branch manager to handle compliance and focus solely on client-facing activities

Follow a strict, impersonal process, avoiding flexibility for customer needs

Only focus on providing solutions to clients without worrying about compliance

Question 5: What distinguishes a "Jumbo loan" from a conventional loan?

Which action should you take?

Choose only one option

A Jumbo loan is available to clients with lower credit scores.

A Jumbo loan exceeds the conforming loan limits set by government agencies, typically for luxury or high-value properties.

A Jumbo loan is for homebuyers who are first-time buyers.

A Jumbo loan has lower interest rates than a conventional loan.

Question 6: Which of the following types of loans is most commonly used by borrowers looking to purchase their first home with minimal down payment?

Which action should you take?

Choose only one option

VA loan

Conventional loan

FHA loan

Jumbo loan