26. What is the difference between a bank’s interest rate and the annual percentage rate (APR)?
a) The interest rate is the cost of borrowing money, while the APR includes additional fees and charges
b) The interest rate is the cost of borrowing money, while the APR is the total amount paid back over the life of a loan
c) The interest rate is the percentage of the loan amount that must be repaid, while the APR is the interest rate plus any late payment penalties
d) There is no difference between a bank’s interest rate and the APR
27. What is the purpose of the Basel III framework?
a) To promote international cooperation and stability in the banking system
b) To regulate interest rates in the global economy
c) To ensure that all banks have the same lending policies
d) To prevent fraudulent activities in the banking industry
28. What is the role of a bank teller?
a) To assist customers with their banking transactions
b) To approve loan applications
c) To manage the bank’s investment portfolio
d) To oversee the bank’s risk management activities
29. What is a bank’s net interest margin?
a) The difference between a bank’s interest income and interest expenses, divided by its average interest-earning assets
b) The total amount of interest earned by a bank
c) The percentage of a bank’s loans that are repaid on time
d) The difference between a bank’s equity and liabilities
30. What is the purpose of a bank’s liquidity management?
a) To ensure that a bank has enough cash to meet its withdrawal obligations
b) To maximize profits from short-term investments
c) To ensure that a bank’s borrowers are creditworthy
d) To minimize the number of non-performing loans
