All Practice Exams
Free Practice Questions for TIOB CPB Level II
Exam-style questions and explanations by OpenExamPrep.
✓ No registration✓ No credit card
32+ Questions
100% Free
Loading practice questions...
Same family resources
Explore More Tanzania TIOB Banking Certificate and CPB
Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.
Exam Review
Key Facts: TIOB CPB Level II Exam
4 subjects
In CPB Level II
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 II covers The Monetary and Financial System, Financial Services, Lending, and Financial Analysis. TIOB confirms descriptive and objective questions, and the October 2026 timetable specifies two-hour slots. Full Certified Professional Banker qualification requires both CPB levels; Level II alone is not the complete award.
Sample TIOB CPB Level II Practice Questions
Try these sample questions to review concepts for the TIOB CPB Level II exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 32+ question experience with AI tutoring.
1Which Tanzanian authority regulates securities exchanges and public offerings of corporate securities?
A.National Social Security Fund
B.Financial Intelligence Unit
C.Capital Markets and Securities Authority
D.Tanzania Revenue Authority
Explanation: CMSA regulates and develops Tanzania's capital markets, including securities-market intermediaries and exchanges. Its role differs from that of an institutional investor, tax authority, or financial-intelligence agency.
2Under the Bank of Tanzania's interest-rate-based monetary policy framework, how does the Central Bank Rate primarily guide transmission?
A.It directly fixes every retail lending rate at the CBR
B.It determines the face value of existing Treasury bonds
C.It guides the seven-day interbank rate, influencing wider funding and lending conditions
D.It determines a permanent fixed exchange rate against USD
Explanation: The Bank steers the seven-day interbank cash market rate along the CBR as its operating target. Changes can transmit through banks' funding costs and customer rates, affecting demand and inflation without fixing every retail price.
3For a hypothetical reserve calculation, eligible deposits remain TZS 500 billion while the required reserve ratio rises from 6% to 8%. Assuming no offsetting liquidity operation, how much additional reserve is required?
A.TZS 40 billion
B.TZS 10 billion
C.TZS 30 billion
D.TZS 2 billion
Explanation: Required reserves rise from TZS 30 billion to TZS 40 billion. The increase is TZS 500 billion times two percentage points, or TZS 10 billion, reducing funds otherwise available to the bank; these ratios are hypothetical rather than a statement of current policy.
4A multiple-price Treasury-bill auction offers TZS 100 million face value. X bids for TZS 60 million at 98.00 per 100 face value; Y bids for TZS 60 million at 97.50; Z bids for TZS 30 million at 97.50. With proportional allocation at the cutoff, what face value and cash payment apply to Y?
A.Face value TZS 40 million; payment TZS 39 million
B.Face value TZS 26 2/3 million; payment TZS 26 million
C.Face value TZS 30 million; payment TZS 29.25 million
D.Face value TZS 26 2/3 million; payment approximately TZS 26.133 million
Explanation: X's higher-price bid takes TZS 60 million, leaving TZS 40 million for cutoff bids totaling TZS 90 million. Y receives 60/90 of the remainder, or TZS 26 2/3 million face value. At Y's own price of 97.50 per 100, its cash payment is TZS 26 million, illustrating the Bank of Tanzania's multiple-price and cutoff-proration rules.
5A simplified monetary dataset has TZS 6 trillion currency outside banks, TZS 14 trillion transferable national-currency deposits, TZS 10 trillion other national-currency deposits, and TZS 8 trillion foreign-currency deposits. Residents convert TZS 3 trillion of the foreign-currency deposits into national-currency time deposits at unchanged valuation. Under BoT's aggregate structure, what are M2 and M3 afterward?
A.M2: TZS 30 trillion; M3: TZS 35 trillion
B.M2: TZS 33 trillion; M3: TZS 38 trillion
C.M2: TZS 33 trillion; M3: TZS 41 trillion
D.M2: TZS 27 trillion; M3: TZS 38 trillion
Explanation: M1 remains TZS 20 trillion. Other national-currency deposits rise to TZS 13 trillion, so M2 is TZS 33 trillion. Foreign-currency deposits fall to TZS 5 trillion, leaving M3 unchanged at TZS 38 trillion because the conversion only changes its composition.
6For an existing fixed-rate bond with unchanged promised cash flows and credit risk, what happens to price when the market-required yield rises?
A.Price falls
B.Price rises
C.Price stays at face value
D.Price rises by the percentage increase in yield
Explanation: A higher required yield discounts the unchanged future cash flows more heavily. Their present value, and therefore the bond price, falls.
7An investor sells previously issued shares to another investor on a securities exchange. What is the main economic function of this secondary-market transaction?
A.Issuing new equity capital directly to the company
B.Replacing the company's obligation to publish financial information
C.Paying a dividend on behalf of the issuer
D.Providing investor liquidity and contributing to price discovery
Explanation: Secondary trading allows investors to transfer existing securities and discover market prices. The sale proceeds normally go to the selling investor rather than providing fresh issue proceeds to the company.
8Bank A owes Bank B TZS 80 million and Bank B owes Bank A TZS 50 million. Ignoring other payments, which comparison of gross settlement and bilateral net settlement is correct?
A.Gross settlement needs only a TZS 30 million payment from A
B.Net settlement requires two payments totaling TZS 130 million
C.Gross settlement processes both obligations separately; net settlement can reduce them to TZS 30 million from A to B
D.Net settlement produces a TZS 30 million payment from B to A
Explanation: Gross settlement processes the TZS 80 million and TZS 50 million obligations separately. Bilateral netting offsets the reciprocal amounts, leaving Bank A owing Bank B TZS 30 million; timing and liquidity arrangements still affect actual funding needs.
9A firm's only current assets are cash TZS 15 million, receivables TZS 25 million, and inventory TZS 40 million. Current liabilities are TZS 50 million. What are its current and quick ratios?
A.Current 1.20; quick 0.50
B.Current 1.60; quick 0.80
C.Current 2.00; quick 1.10
D.Current 0.80; quick 1.60
Explanation: Current assets total TZS 80 million, giving a current ratio of 80/50 = 1.60. Excluding inventory leaves TZS 40 million of quick assets, giving 40/50 = 0.80.
10Annual credit sales are TZS 360 million and average trade receivables are TZS 30 million. Using a 360-day year, what are receivables turnover and average collection period?
A.8 times; 45 days
B.6 times; 60 days
C.20 times; 18 days
D.12 times; 30 days
Explanation: Turnover is credit sales divided by average receivables: 360/30 = 12 times. The collection period is 360/12 = 30 days under the stated year convention.
About the TIOB CPB Level II Practice Questions
Check the official exam sponsor for the exam format, time limit, passing standard, fees, and eligibility requirements. These details are not yet confirmed here.