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Foreign Exchange and Transfer Professional Exam (FE): free practice test

Start with 10 free questions to see what needs more practice. Finish to see your score, weakest units and every option explained.

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Practice test questions with answers and explanations

Try the questions in the test above first, then open each one here to see the correct answer and why every other option is wrong.

01Which institution sits at the apex of the Saudi banking system and is responsible for its soundness and effectiveness?

Practice question Unit: Structure of Money Exchange and Transfer Centres

  1. ASaudi Central Bank (SAMA) ✓ Correct answer

    SAMA oversees the banking system’s soundness and effectiveness toward the public, users and shareholders.

  2. BMinistry of Commerce only

    The Ministry of Commerce does not supervise banks or exchange centres.

  3. CMunicipal licensing offices

    Municipal offices handle local permits, not central banking oversight.

  4. DStock-exchange membership desk

    An exchange membership desk is not the apex supervisor.

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

02Under the Banking Control Law, what primarily distinguishes a commercial bank from other businesses?

Practice question Unit: Structure of Money Exchange and Transfer Centres

  1. AIssuing municipal building permits as its main line of business

    Building permits are a municipal function, not banking.

  2. BAccepting deposits and conducting banking business as a primary activity ✓ Correct answer

    A bank is a legal person that primarily accepts deposits and conducts banking business.

  3. COperating only as a travel agency without deposit powers, contrary to the curriculum definition of the correct control

    Travel agencies are not defined as banks.

  4. DPublishing school textbooks instead of offering banking services

    Publishing is unrelated to the Banking Control Law definition.

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

03In which year did the modern path of the Saudi banking system begin with the establishment of the Saudi Central Bank?

Practice question Unit: Structure of Money Exchange and Transfer Centres

  1. A1902

    1902 predates SAMA’s establishment.

  2. B1975

    1975 is not the curriculum’s founding year for SAMA.

  3. C1990

    1990 is unrelated to SAMA’s founding.

  4. D1952 ✓ Correct answer

    The curriculum notes the modern path began with SAMA’s establishment in 1952.

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

04Which activity may SAMA licence an exchange centre to conduct inside the Kingdom?

Practice question Unit: Structure of Money Exchange and Transfer Centres

  1. AAccepting public demand deposits like a bank

    Accepting deposits is prohibited for exchange centres.

  2. BBuying and selling foreign currencies ✓ Correct answer

    Buying and selling foreign currencies is a core permitted activity.

  3. CIssuing retail mortgage loans to residents

    Mortgage lending is a banking activity, not an exchange licence.

  4. DUnderwriting IPO equity for listed issuers

    IPO underwriting is not an exchange-centre activity.

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

05Which pair correctly reflects customer types discussed for exchange centres?

Practice question Unit: Effective Customer Service in Exchange and Transfer Centres

  1. AOnly anonymous cash handlers with no ID

    Anonymous no-ID handling conflicts with KYC.

  2. BNatural persons (individuals) and legal persons (firms, entities) ✓ Correct answer

    The text distinguishes natural persons and legal persons such as firms and bodies.

  3. COnly minors under ten years old

    Minors-only is not the typology given.

  4. DOnly foreign embassies abroad under a mistaken front-line shortcut

    Embassies are not the exclusive customer type.

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 2. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

06Which activity is a core product of money-exchange centres under Chapter 3?

Practice question Unit: Products and Services of Exchange and Transfer Centres

  1. AAccepting public demand deposits

    Deposit-taking is prohibited for centres.

  2. BBuying and selling foreign currency as a core permitted activity ✓ Correct answer

    FX buy/sell is a primary permitted exchange product.

  3. CIssuing retail mortgage loans contrary to Chapter 3 product and remittance rules

    Mortgage lending is a banking activity.

  4. DUnderwriting IPO equity offerings

    IPO underwriting is outside the exchange licence.

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 3. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

07How should the compliance function be positioned organisationally?

Practice question Unit: Compliance in Financial Institutions and Effective Governance

  1. ACompliance should have organisational independence and appropriate reporting lines ✓ Correct answer

    fa-fe-u4-0004: correct — Compliance should have organisational independence and appropriate reporting lines

  2. BKeeping manuals permanently outdated under ordinary FE conditions on governance-structure questions

    fa-fe-u4-0004: reject option 1 — Keeping manuals permanently outdated, reflecting a common weak-candida

  3. CRefusing to escalate ethical concerns

    fa-fe-u4-0004: reject option 2 — Refusing to escalate ethical concerns, which FE governance standards r

  4. DMaking policy exceptions the daily default

    fa-fe-u4-0004: reject option 3 — Making policy exceptions the daily default

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 4. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

08Assessing this point, what should FE candidates treat as the sound control?

Practice question Unit: Fraud Concept and Impact on Exchange and Transfer Centres

  1. AFighting fraud protects customers, centres and system integrity ✓ Correct answer

    fa-fe-u5-0004: correct — Fighting fraud protects customers, centres and system integrity

  2. BRefusing to escalate confirmed fraud indicators

    fa-fe-u5-0004: reject option 1 — Refusing to escalate confirmed fraud indicators

  3. CPreferring informal habit over escalation channels when issues arise in fraud escalation during review cycle 72

    fa-fe-u5-0004: reject option 2 — Preferring informal habit over escalation channels when issues arise i

  4. DLeaving CCTV unused during high-risk hours

    fa-fe-u5-0004: reject option 3 — Leaving CCTV unused during high-risk hours

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 5. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

09Reviewing this issue, which position is supported by the chapter objectives?

Practice question Unit: AML/CFT in the Kingdom of Saudi Arabia

  1. APreferring verbal custom over escalation channels when issues arise in conduct reporting during review cycle 176

    fa-fe-u6-0075: reject option 0 — Preferring verbal custom over escalation channels when issues arise in

  2. BKeeping no audit trail for unusual activity reviews

    fa-fe-u6-0075: reject option 1 — Keeping no audit trail for unusual activity reviews as weak candidates

  3. CTreating cash-intensive businesses with zero extra diligence

    fa-fe-u6-0075: reject option 2 — Treating cash-intensive businesses with zero extra diligence in daily

  4. DDe-risking should be risk-based rather than blunt indiscriminate exclusion without process ✓ Correct answer

    fa-fe-u6-0075: correct — De-risking should be risk-based rather than blunt indiscriminate exclusion without process

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 6. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

10Reviewing key standard, which rule applies in day-to-day FE work?

Practice question Unit: Business Conduct Rules

  1. AActing without integrity when customers are difficult

    fa-fe-u7-0001: reject option 0 — Acting without integrity when customers are difficult under ordinary F

  2. BThe code of business conduct aims to protect customers and the financial system’s reputation ✓ Correct answer

    fa-fe-u7-0001: correct — The code of business conduct aims to protect customers and the financial system’s reputation

  3. CHiding conflicts of interest from management

    fa-fe-u7-0001: reject option 2 — Hiding conflicts of interest from management within exchange-centre op

  4. DClaiming marketing language makes monitoring unnecessary whenever staff handle AML monitoring during review cycle 189

    fa-fe-u7-0001: reject option 3 — Claiming marketing language makes monitoring unnecessary whenever staf

Reference: FA, Exchange and Transfer curriculum, 3rd ed. (Oct 2023), Chapter 7. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/Exchangeandtransfer20231026V2.pdf

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