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Retail Banking Fundamentals Professional Exam (RBF): free practice test

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Practice test questions with answers and explanations

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01Sahm Bank has paid-up capital of SAR 2.5 billion and reserves of SAR 1.5 billion. SAMA has not approved any increase in the limit. Under Article 8 of the Banking Control Law, what is the maximum aggregate credit the bank may extend to any one customer?

Practice question Unit: The Structure of Retail Banking Sector in KSA

  1. ASAR 625 million

    SAR 625 million is 25% of paid-up capital alone; Article 8 applies the 25% to paid-up capital and reserves together (SAR 4 billion).

  2. BSAR 1 billion ✓ Correct answer

    Correct: 25% × (2.5 + 1.5) = 25% × SAR 4 billion = SAR 1 billion.

  3. CSAR 2 billion

    SAR 2 billion reflects 50%, the most SAMA may allow in the public interest under conditions; no such increase was approved here.

  4. DSAR 400 million

    SAR 400 million applies a 10% ratio, which is not the Article 8 ceiling of 25%.

Reference: Banking Control Law, Royal Decree No. M/5 dated 22/2/1386H, Article 8 (25% of reserves and paid-up or invested capital; SAMA may raise it to 50% in the public interest). FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 1, Section 1.3.2. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

02A contractor submits a SAR 4,000,000 offer in a government tender whose conditions set the initial (bid) guarantee at the highest rate the Government Tenders and Procurement Law allows. If the contract is awarded at the offer value, which pair of bank letters of guarantee will the contractor need?

Practice question Unit: Retail Banking Products and Services in KSA

  1. AInitial guarantee SAR 40,000; final (performance) guarantee SAR 200,000

    SAR 40,000 is 1% of the offer, the lowest rate in the 1–2% range; the tender conditions here call for the highest rate, 2%.

  2. BInitial guarantee SAR 80,000; final (performance) guarantee SAR 200,000 ✓ Correct answer

    Correct: Article 41 sets the initial guarantee at 1%–2% of the offer value (2% × 4,000,000 = 80,000) and Article 61 sets the final guarantee at 5% of the contract value (5% × 4,000,000 = 200,000).

  3. CInitial guarantee SAR 80,000; final (performance) guarantee SAR 400,000

    The initial guarantee is right, but SAR 400,000 is 10% of the contract; the law sets the final guarantee at 5%.

  4. DInitial guarantee SAR 200,000; final (performance) guarantee SAR 400,000

    These are the 5%/10% ‘usual’ figures in the curriculum’s LG description; for a government tender the current law sets 1–2% and 5%.

Reference: Government Tenders and Procurement Law, Royal Decree No. M/128 dated 13/11/1440H, Articles 41 (initial guarantee 1%–2% of offer value) and 61 (final guarantee 5% of contract value). https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/c2c05ee1-201a-48de-91e7-a9a700f2d14f/1 ; LG types: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 2, Section 2.1.3.

03A client’s total monthly income is SAR 18,000, of which total salary is SAR 15,000. Basic monthly expenses are SAR 5,800 and monthly credit obligations (per the SIMAH report and the client’s declaration) are SAR 4,000. What is the client’s disposable monthly net income?

Practice question Unit: Principles of Responsible Financing

  1. ASAR 5,200

    This starts from total salary (15,000) instead of total monthly income; the definition deducts from total monthly income.

  2. BSAR 8,200 ✓ Correct answer

    Correct: disposable monthly net income = total monthly income − basic expenses − monthly credit obligations = 18,000 − 5,800 − 4,000 = 8,200.

  3. CSAR 12,200

    This deducts basic expenses only; monthly credit obligations must also be deducted.

  4. DSAR 14,000

    This deducts credit obligations only; basic expenses must also be deducted.

Reference: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 3, Section 3.1.1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

04Selling 100 grams of gold now for 100 grams of gold delivered next month involves which type of riba?

Practice question Unit: Islamic Sharia Principles and Impact on Retail Banking

  1. ARiba al-nasi'ah, because delivery of one side is delayed ✓ Correct answer

    Correct: gold for gold must be exchanged like for like and hand to hand. Here the quantities are equal, but one side is delivered next month; delaying delivery of one of two ribawi items of the same kind is riba al-nasi'ah.

  2. BRiba al-fadl, because gold is exchanged for gold of the same kind

    Riba al-fadl needs an excess in quantity within the same kind; here 100 g is exchanged for 100 g, so the defect is the deferred delivery (riba al-nasi'ah).

  3. CDebt riba, because a loan contract is involved here

    Debt riba arises from an increase charged on a loan or debt. This is a sale exchanging gold for gold, not a loan, so the defect is the deferred delivery.

  4. DNo riba at all, because the gold quantities on both sides are equal

    Equality is not enough for gold against gold; both sides must also be exchanged on the spot, so the delay creates riba al-nasi'ah.

Reference: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 4, Section 4.1.2. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

05A relationship officer meets a customer who says only that he wants "something better" for his savings. Which questioning approach best uncovers his latent needs?

Practice question Unit: Effective Customer Service in Retail Banking

  1. AClosed questions throughout, so the customer's answers are easy to record and compare

    Closed questions limit the customer to set answers and do not surface latent needs; they belong at the confirmation stage.

  2. BPresent two or three suitable products first, then ask which one appeals most

    Leading with products before exploring needs risks missing what the customer actually wants.

  3. COpen-ended questions first, then closed-ended questions to confirm the conclusion ✓ Correct answer

    Correct: open-ended questions let the customer express wishes and reveal clear and latent needs; closed-ended questions then confirm the conclusion.

  4. DLet the employee lead most of the dialogue, giving the customer time to react

    The curriculum gives 80–90% of the dialogue to the customer, not to the employee.

Reference: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 5, Section 5.6.2. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

06Omar asks his bank to send SAR 20,000 to his brother's account in Egypt. Under the Banking Customer Protection Principles, what must the bank tell him about fees, and when?

Practice question Unit: Principles of Protecting Bank Customers

  1. AThe bank's own fee before confirming; correspondent charges once the correspondent advises them

    Correspondent fees must be included in the fee and disclosed before the customer confirms, not after the correspondent advises them.

  2. BAll fees except the beneficiary bank's, which that bank deducts and advises separately

    Beneficiary-bank fees must also be included in the amount disclosed before confirmation.

  3. CThe amount of all fees, including correspondent and beneficiary-bank fees, before confirming ✓ Correct answer

    Correct: the fee must include any beneficiary-bank and correspondent fees, and the customer must be told the amount of all fees before confirming the transfer.

  4. DA written estimate of all fees, with exact amounts confirmed within two business days

    An estimate with later confirmation does not meet the duty; the two-business-day period applies to advising returned funds.

Reference: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 6, Section 6.2.3. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf (SAMA Banking Customer Protection Principles, Foreign Exchange Transfers)

07After speaking at a banking conference, an employee of a financial institution receives a box of premium dates worth about SAR 600 and an engraved crystal trophy that could be resold. Under the Code of Conduct and Work Ethics in Financial Institutions, which item(s) require a written disclosure form to compliance directly after receipt?

Practice question Unit: Business Conduct Rules

  1. AThe trophy only ✓ Correct answer

    Correct: a gift that has value and can be sold must be disclosed, so the trophy is caught; perishable gifts need disclosure only above SAR 1,000, so the SAR 600 dates are not.

  2. BBoth the dates and the trophy

    The dates are perishable and worth about SAR 600, below the SAR 1,000 perishable threshold.

  3. CThe dates only

    This reverses the rule: the dates fall below the perishable threshold, while the resalable trophy must be disclosed.

  4. DNeither, as trophies are customary event gifts and the dates are perishable

    A trophy may be an acceptable customary gift, but acceptability is separate from disclosure: a gift with value that can be sold must still be disclosed.

Reference: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 7, Section 7.2.4. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

08Regulators detect legal violations at a bank. Which of these is a NON-financial implication that may follow?

Practice question Unit: Compliance Principles and Impact on Retail Banking

  1. AA fine equal to the profit earned from the violation

    A fine is a financial consequence, not a non-financial one.

  2. BCompensation paid to the customers who were affected

    Compensation is a direct financial cost to the bank.

  3. CRefusal of approval for a planned merger or acquisition ✓ Correct answer

    Inability to obtain approval for a merger or acquisition is listed among the non-financial implications.

  4. DHigher provisions booked against its financing portfolio

    Provisions hit the income statement, so they are financial in nature.

Reference: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 8, Section 8.1.3. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

09A supplier submits invoices for deliveries that never took place, and a procurement officer who secretly receives a share of each payment approves them. How does the curriculum classify this fraud?

Practice question Unit: Fraud Concept and Impact on Retail Banking

  1. AInternal fraud, since the payment was approved by a bank employee

    The employee's role matters, but because he acts with and for an outside party, the curriculum treats it as conspiracy rather than purely internal fraud.

  2. BExternal fraud, as the invoices came from the supplier

    The false invoices come from outside, but an insider's collusion makes this conspiracy rather than purely third-party fraud.

  3. CAn operational loss rather than fraud, if the goods are later delivered

    Generating false data to obtain a benefit is fraud when committed; later delivery does not change that classification.

  4. DFraud by conspiracy, with an employee working for a third party ✓ Correct answer

    Correct: false supplier invoices are generating false data to obtain a benefit, and fraud through conspiracy involves employees working in favour of third parties.

Reference: FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 9, Section 9.1.2. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

10A finance company is convicted of laundering SAR 4 million; its manager is separately convicted as a natural person. Under Article 31 of the Anti-Money Laundering Law, what is the minimum fine the court may impose on the company?

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

  1. ASAR 4 million

    A fine equal to the laundered amount is below the Article 31 floor of double the value of the funds.

  2. BSAR 8 million ✓ Correct answer

    Correct: Article 31(1) fines a legal person not more than SAR 50 million and not less than double the value of the laundered funds, without prejudice to the separate liability of natural persons such as the manager. The floor is 2 × SAR 4 million = SAR 8 million, within the SAR 50 million cap.

  3. CSAR 50 million

    SAR 50 million is the maximum fine for a legal person, not the minimum.

  4. DSAR 5 million

    SAR 5 million is the Article 26 maximum fine for a natural person; it does not set the company's minimum.

Reference: Anti-Money Laundering Law, Royal Decree No. M/20 dated 5/2/1439H, Articles 26 and 31(1). https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/0657dfce-95f8-463a-9d87-aa3900ec7b51/1 ; FA, Retail Banking Foundations curriculum, 4th ed. (Nov 2023), Chapter 10, Section 10.1.6. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/Documents/RetailBankingFoundationDraft20240122.pdf

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