31. What is the role of the Financial Action Task Force (FATF)?
a) To regulate interest rates in the global economy
b) To combat money laundering and terrorist financing
c) To provide financial assistance to developing countries
d) To issue currency
32. What is the purpose of a bank’s asset quality review?
a) To assess the creditworthiness of a bank’s borrowers
b) To evaluate the quality of a bank’s loan portfolio
c) To determine the fair value of a bank’s assets
d) To measure the risk of a bank’s investment activities
33. What is the role of a bank’s compliance officer?
a) To ensure that the bank complies with applicable laws and regulations
b) To manage the bank’s investment portfolio
c) To approve loan applications
d) To supervise the bank’s risk management activities
34. What is the difference between a bank’s primary market and secondary market activities?
a) Primary market activities involve raising capital, while secondary market activities involve trading existing securities
b) Primary market activities involve buying and selling stocks, while secondary market activities involve issuing new bonds
c) Primary market activities involve lending money to individuals and businesses, while secondary market activities involve issuing credit cards
d) There is no difference between a bank’s primary market and secondary market activities
35. What is the purpose of a bank’s stress testing exercises?
a) To evaluate the impact of severe economic scenarios on a bank’s financial health
b) To calculate the interest rate for loans
c) To assess the creditworthiness of a bank’s borrowers
d) To manage a bank’s investment portfolio
