Free Practice Questions for FA Credit Adviser

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Sample FA Credit Adviser Practice Questions

Try these sample questions to review concepts for the FA Credit Adviser exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under SAMA Regulations for Issuance and Operations of Credit and Charge Cards, what is the minimum monthly repayment a card issuer may require?

A.Not below 5% of the outstanding balance

B.Below 3% of the outstanding balance

C.A flat SAR 100 regardless of balance

D.10% of the credit limit

Explanation: Issuers may not lower the minimum monthly repayment below 5% of the outstanding balance on the credit card account.

2How does a charge card differ from a credit card under SAMA card definitions?

A.A charge card never has a credit limit

B.The charge cardholder must repay the full outstanding amount upon receipt of the statement or by the due date

C.A charge card can only be used internationally

D.A charge card is the same as a prepaid card

Explanation: A charge card is similar to a credit card but requires repayment of the full outstanding amount upon receipt of the account statement or on the due date.

3Consumer finance under SAMA’s Regulations for Consumer Finance primarily covers financing granted to individuals for which purpose?

A.Financing connected to the borrower’s commercial activity only

B.Only mortgage loans secured on residential property

C.Non-business purposes unconnected with the borrower’s commercial or professional activity

D.Only margin lending against securities

Explanation: Consumer financing is granted to individuals for non-business purposes unconnected with commercial or professional activity (e.g., personal finance, car finance, credit cards).

4In consumer finance advertisements, which rate must the creditor disclose clearly for the advertised product?

A.Only the term cost, without APR

B.Only VAT

C.Only SAIBOR

D.The Annual Percentage Rate (APR), and not other rates such as the term cost alone

Explanation: Advertisements must clearly disclose the product name and APR, and shall not present other rates such as the term cost in place of APR.

5What is the borrower’s right of withdrawal period for a consumer financing contract (except non-interest-based transactions)?

A.10 calendar days from the date of execution

B.3 calendar days

C.15 business days

D.30 calendar days

Explanation: Except in non-interest-based transactions, the borrower may terminate the financing contract within 10 calendar days from execution without producing justifications.

6Administrative fees, costs, and service charges recovered from a consumer-finance borrower must not exceed:

A.2% of the finance amount with no SAR cap

B.1% of the amount of financing or SAR 5,000, whichever is lower (plus VAT on the fee)

C.SAR 10,000 fixed for all loans

D.5% of monthly income

Explanation: All fees, costs, and administrative service charges must not exceed the equivalent of 1% of the financing amount or SAR 5,000, whichever is lower, plus VAT on the fee.

7Which amortization method must a consumer financing contract stipulate for distributing term cost over the maturity period?

A.Flat-rate method only

B.Interest-only method with no principal reduction

C.Declining balance method

D.Balloon-only with no interim term cost

Explanation: The contract must stipulate use of the declining balance method, allocating term cost pro-rata based on the remaining financing balance at the start of each installment period.

8Real estate finance is best described as finance granted to customers for purposes such as:

A.Only short-term overdrafts for salaries

B.Only paying credit-card minimums

C.Only buying listed equities on Tadawul

D.Building or purchasing residential/commercial units, buying or developing residential lands, and related activities

Explanation: Real estate finance covers building/purchasing residential and commercial units, buying/developing residential lands, and related activities by entities authorized by SAMA.

9Under finance lease concepts in the curriculum, who typically performs operational maintenance of the leased asset?

A.The lessee at the lessee’s own expense according to prevailing technical practices (unless agreed otherwise for basic maintenance)

B.Always the lessor at the lessor’s expense

C.SAMA’s contracts register

D.The credit bureau

Explanation: The lessee uses the asset for agreed purposes and is responsible for operational maintenance at the lessee’s expense; basic maintenance is by the lessor unless agreed otherwise.

10APR in financing disclosure is best defined as:

A.Only the profit rate excluding all fees

B.An internationally recognized indicator disclosing the actual cost of financing, including mandatory administrative costs and fees

C.Only VAT on administrative fees

D.The minimum repayment percentage on a card

Explanation: APR criteria disclose the actual cost of financing including mandatory administrative costs and fees, enabling comparability across products.

About the FA Credit Adviser Exam

The Credit Adviser Professional Exam (CAPE) is a SAMA-mandatory Financial Academy assessment for staff who grant credit in banks and financing companies. It covers financing products, financing mechanisms, operational risk/AML, customer credit risk and workplace ethics.

Exam sponsor: Financial Academy under Saudi Central Bank (SAMA) mandatory professional-certificate requirements. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

100 multiple-choice questions across 5 official FA curriculum chapters (weights 40/13/13/14/20).

Time Limit

120 minutes.

Passing Score

70%

Exam / Certification Fees

SAR 1,200 through the Financial Academy.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

40%

Financing Products

Cards, consumer finance, real estate finance and lease products.

13%

Financing Mechanism

Credit process and financing mechanisms.

13%

Operational Risk / AML

Suspicious transactions and AML/CTF frameworks.

14%

Customer Credit Risk

Credit risk, collections and default handling.

20%

Self-Management and Ethics

Performance management and professional conduct.

Preparing for the FA Credit Adviser Exam

What You Need to Know

Passing score: 70%
Assessment: 100 multiple-choice questions across 5 official FA curriculum chapters (weights 40/13/13/14/20).
Time limit: 120 minutes.
Exam / certification fees: SAR 1,200 through the Financial Academy. Official sources

Using Our Practice Resources

Work through all 100 available questions
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Frequently Asked Questions

What is the passing score for CAPE?

The Financial Academy CAPE exam details page lists a passing score of 70%.

How long is the exam?

The exam duration is 120 minutes for 100 multiple-choice questions.

How much does CAPE cost?

The Financial Academy lists an examination fee of SAR 1,200. Confirm live pricing on the FA portal.

Who must take the Credit Adviser exam?

SAMA requires specified bank and financing-company staff involved in granting credit—including relevant third-party contracted staff and branch managers—to obtain the Credit Adviser professional certificate.