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Ueh University: Course: Commercial Banking Class

The document is an end-of-term exam for a commercial banking course containing 10 questions. The questions cover topics such as the core activities of commercial banks, types of bank accounts, Basel capital standards, factors affecting interest rates on loans and deposits, open-end and close-end credit, calculating interest, and creating a loan payment schedule.

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Mai Hiếu Trinh
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18 views2 pages

Ueh University: Course: Commercial Banking Class

The document is an end-of-term exam for a commercial banking course containing 10 questions. The questions cover topics such as the core activities of commercial banks, types of bank accounts, Basel capital standards, factors affecting interest rates on loans and deposits, open-end and close-end credit, calculating interest, and creating a loan payment schedule.

Uploaded by

Mai Hiếu Trinh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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UEH UNIVERSITY

SCHOOL OF BANKING

END-OF-TERM EXAMINATION
Course: Commercial Banking
Class: 22D1BAN50604903

1. What is the difference between commercial banks and other financial institutions?
Describe the core business activities of commercial banks.
2. Describe the similarities and disfferences of Certificate of deposit (CD), Money
Market Deposit Accounts (MMDAs) and Saving account?
3. According to Basel II and Basel III, what is the safety ratio of risk-weighted assets to
capital mobilization of a commercial bank? How Vietnamese commercial banks apply
Basel standards?
4. Why do banks pay low interest rate for current accounts? Why the interest rate of long-
term loans is usually higher than the interest rate of short-term loans?
5. What is the difference between Open-end Credit and Close-end Credit? Give the
examples and application for these credit methods. In your opinion, how many credit
cards are too many? Explain your reasoning.
6. How do loans affect a bank’s income? Why is liquidity risk considerable inportance to
a bank’s loan policy? According to Vietnamese Law on credit institutions, can
commercial banks use short-term deposits for long-term loans?
7. What is the difference between prime rate and subprime rate and how they are applied?
Describe the five Cs credit criteria in leanding process. Why might underwriting
standards vary at different banks?
8. What is the difference between APR and Financial Charge? How can a consumer find
the best deals on credit?
9. Calculating interest for customer's current deposit account in May and June 2020,
knowing the interest rate of TT deposit is 1.5%/year, one year interest calculation days
are 365 days. The bank calculates interest on the 25th of every month and the
transactions arising on the account are as follows:

Account balance (VND) 128.000.000


09/05/20 Receiving sales revenue 553.000.000
12/05/20 Payment for staff salary 158.600.000
12/05/20 Payment for raw materials 282.800.000
16/06/20 Receiving sales revenue 329.000.000
18/06/20 Payment for electricity 25.389.000
25/06/20 Cash deposit 30.000.000
10. A customer applied for a 2 year consumer loan to buy a new car. The information in
the loan contract is as follow:
– Car price (loan amount): 580.000.000 VND
– Interest rate: is 12,3%/annum
– Monthly payment: in equal amount that includes interest and a portion of the
principal.
Question:
a. What is the monthly installment?
b. Create a payment schedule for the customer.

The end
GOOD LUCK!

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