Assessment: Fundamentals of Deposit Taking 20_21

Which one of the following institutions are directly regulated by the South African Reserve Bank?

Which of the following statements with regard to banking and the banking sector in South Africa are correct?

i. The net settlement method is used by South African bank to settle interbank transaction.
ii. The gross settlement method is used by South African bank to settle interbank transaction.
iii. An increase in the cash reserve requirement of banks will reduce the credit multiplier.
iv. An increase in the cash reserve requirement of banks will increase the credit multiplier.

Which of the following statements with regard to cooperative banks are correct?

i. The strategic objective of a cooperative bank is to provide the best possible product and services to its members.
ii. Members voting rights within a cooperative bank is determined by the size of the funds invested within the bank.
iii. In a cooperative bank, the surplus is usually allocated to reserves or distributed to the members through interest or dividends.
iv. The members and management board of a cooperative bank belong to the community in which the cooperative bank undertake its activities.

An autonomous association of persons who unite voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise is known as a-

Which one of the following statements with regard to a mutual bank is correct?

Which ONE of the following Acts sets the framework for the minimum reserve requirement?

Which of the following statements with regard to the duties set out in the Code of Conduct for banks as financial services providers conducting short-term deposit taking business are correct?

i. The bank must assist the client in selecting a deposit that meets the client’s needs.
ii. Clients must be made aware if services are offered in a different way, for example electronically.
iii. The bank must provide the client with a monthly account statement send through the postal service.
iv. The client must be informed about the client’s right to access information held by the bank.

A mother would like to know whether she can have a statement on her daughter’s account. She does not have signing authority but her daughter is overseas and needs this information urgently.
How will you respond to this request in terms of the Code of Conduct for banks as financial services providers conducting short-term deposit taking business?

A banker has just successfully opened a cheque account for his client. He begins to cross-sell further products and services and tries to pressurise the client into taking a credit card.
What guidelines should the banker adhere to in terms of the Code of Conduct for banks as financial services providers conducting short-term deposit taking business?

A bank received notification to close an account via the court’s legal system. There has been an investigation regarding a large amount deposit and possible fraud.
The court instructed the bank to close the account. What are the provider’s duties to the client regarding the closure of an account under these circumstances?

Which of the following statements regarding economic policy are correct?

i. Fiscal policy is said to be loosening if tax rates are lowered.
ii. If the money supply is increased, interest rates tend to rise.
iii. Expansionary monetary policy stimulates growth of money supply.
iv. Monetary policy is restrictive when the central bank increases the bank rate.

Calculate the future value for a 3-year investment of R8 000 compounded monthly if the current interest rate is 8.5%

The interest rate on an investment after adjustment for inflation is known as the-

Which one of the following statements with regard to the maximum amount to be invested in a tax -free investment account is correct?

A client would like to invest R50 000, but she wants to be able to access these funds for any emergencies that might occur.
Which key characteristic can be identified in the scenario?