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Key Facts: TIOB CPB Level I Exam
4 subjects
In CPB Level I
TIOB programme page, checked 2026-10-23
2 hours
Subject slots in the October 2026 timetable
TIOB timetable PDF, checked 2026-10-23
CPB Level I comprises Law Relating to Banking Services, International Trade Finance, Management Practice, and Strategic Marketing Management. TIOB confirms descriptive and objective questions; the October 2026 timetable gives two-hour slots. The Certified Professional Banker qualification requires completion of both CPB levels.
Sample TIOB CPB Level I Practice Questions
Try these sample questions to review concepts for the TIOB CPB Level I exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 32+ question experience with AI tutoring.
1Which authority grants banking licences under Tanzania's Banking and Financial Institutions Act?
A.Capital Markets and Securities Authority
B.Tanzania Revenue Authority
C.Bank of Tanzania
D.Business Registrations and Licensing Agency
Explanation: The Act assigns bank licensing, regulation, and supervision to the Bank of Tanzania. Incorporating a business or obtaining tax registration does not authorize it to conduct banking business.
2Which Tanzanian body receives suspicious transaction reports from reporting persons for financial-intelligence analysis?
A.Capital Markets and Securities Authority
B.Bank of Tanzania's currency department
C.Financial Intelligence Unit
D.Business Registrations and Licensing Agency
Explanation: The Financial Intelligence Unit receives and analyses suspicious transaction reports. It can disseminate relevant intelligence to appropriate law-enforcement bodies; internal escalation within a bank does not replace the required reporting process.
3A bank is contractually entitled to combine a customer's deposit balance with a matured overdraft owed by the same customer in the same legal capacity. Which right describes this netting?
A.Subrogation
B.Foreclosure
C.Stoppage in transit
D.Set-off
Explanation: Set-off applies mutual balances against one another to determine the net amount due. Its exercise depends on the relevant contract and legal conditions, including capacity and restrictions on particular funds.
4Which purchaser most clearly meets the Bills of Exchange Act's requirements for a holder in due course? In each case the bill is complete and regular on its face.
A.A purchaser who pays value after maturity without notice of a title defect
B.A recipient who accepts the bill as a gift before maturity
C.A purchaser who pays value before maturity but knows the transferor obtained it by fraud
D.A purchaser who pays value in good faith before maturity, without notice of prior dishonour or a title defect
Explanation: Holder-in-due-course status requires more than possession of a regular-looking bill. The holder must meet the conditions concerning value, good faith, timing, and absence of notice of dishonour or defective title.
5Which description best distinguishes a fixed charge from a floating charge over company assets?
A.A fixed charge attaches to identified assets with disposal restrictions; a floating charge covers a changing asset class until crystallization
B.A fixed charge secures only short-term loans; a floating charge secures only long-term loans
C.A fixed charge fixes the loan's interest rate; a floating charge changes that rate
D.A fixed charge is always unsecured; a floating charge is always secured
Explanation: The distinction concerns how security attaches and the company's freedom to deal with the assets. A floating charge can cover circulating assets used in ordinary trading until a contractual or legal crystallizing event occurs.
6Under Tanzania's Law of Contract Act, which distinction most accurately separates a guarantee from an indemnity?
A.A guarantee promises performance on a third person's default; an indemnity promises protection from specified loss
B.A guarantee is necessarily written; an indemnity is necessarily oral
C.A guarantee requires no underlying obligation; an indemnity always requires a principal debtor's default
D.A guarantee covers only goods; an indemnity covers only money
Explanation: A guarantee involves a surety promising to perform or discharge a third person's liability in case of default. An indemnity is a promise to save another from loss of the kind covered by the contract; the Act does not impose a universal writing-only rule for guarantees.
7A bank collects a crossed cheque payable to a company into an employee's personal account without investigating the mismatch. Why is its collecting-banker protection at risk?
A.Protection depends only on membership of the clearing system
B.Failure to investigate the obvious mismatch may defeat the requirement to act without negligence
C.An employee identity card automatically authorizes collection of the company's cheques
D.Every crossed cheque makes the collecting bank strictly liable regardless of care
Explanation: Collecting-banker protection depends on good faith and absence of negligence in the circumstances. A corporate-payee cheque presented for a personal account is a warning requiring inquiry; identifying the employee does not establish authority to receive the company's funds.
8A creditor makes a binding agreement with the principal debtor to extend repayment time. The surety has not assented, and the guarantee contains no relevant advance consent. What is the general effect under Tanzania's Law of Contract Act?
A.The surety's liability increases by the amount of deferred interest automatically
B.The surety becomes the principal debtor
C.The surety is discharged
D.The surety remains liable because every extension is merely forbearance
Explanation: A binding agreement with the principal debtor to give time generally discharges the surety unless the surety assents. This differs from merely delaying enforcement without entering a binding agreement to give time.
9Which payment method most directly removes an exporter's exposure to the buyer failing to pay after shipment, assuming cleared and final receipt of the full price?
A.Open account
B.Documents against acceptance
C.Cash in advance
D.Consignment
Explanation: With cash in advance, the exporter receives payment before shipment. This shifts payment risk toward the importer, although the exporter still faces other risks such as fulfilling its supply obligations.
10Under which Incoterms 2020 rule does the seller normally make goods available at its premises without loading the collecting vehicle or clearing the goods for export?
A.DDP
B.FOB
C.CIF
D.EXW
Explanation: EXW places the least delivery obligation on the seller among these rules. The buyer normally handles collection, loading, and export clearance, which can make FCA more practical for some export transactions.
About the TIOB CPB Level I Practice Questions
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