Basic Product Knowledge And Selling Skills
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What products have a PDS (Product Disclosure Statement)?
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Drafts only
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Drafts and telegraphic transfers
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Telegraphic transfers only
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Neither drafts nor telegraphic transfers
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Take the International Payments quiz to assess your Foreign Exchange knowledge and selling skills. Choose one answer for each question. If you score 80% or more you will receive a $20 gift voucher. You will have 2 attempts to complete this quiz.
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- 2.
A business banking customer might find the international payments service useful because
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It enables them to buy goods from overseas and pay the supplier in their own currency
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It enables them to defer the payment date for their order
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It gives them a bigger credit facility
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It reduces the risk of the goods being faulty
Correct Answer
A. It enables them to buy goods from overseas and pay the supplier in their own currencyExplanation
The international payments service is useful for business banking customers because it allows them to buy goods from overseas and pay the supplier in their own currency. This eliminates the need for currency conversion and reduces the risk of exchange rate fluctuations. It also simplifies the payment process and makes it more efficient for both the buyer and the supplier. By being able to pay in their own currency, the customer can better manage their cash flow and budgeting.Rate this question:
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- 3.
What products should members use to transfer money overseas?
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Cash Passport card
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Draft or Telegraphic Transfer
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Travellers cheques
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Personal cheques
Correct Answer
A. Draft or Telegraphic TransferExplanation
Members should use Draft or Telegraphic Transfer to transfer money overseas. These methods provide a secure and efficient way to send funds internationally. Cash Passport card, Travellers cheques, and Personal cheques may not be as widely accepted or convenient for overseas transfers.Rate this question:
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- 4.
What is a Telegraphic Transfer?
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Transfer of funds overseas to be paid out in cash
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Cheque in a foreign currency
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Transfer of funds overseas to be credited to a bank account
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Travel card in a foreign currency
Correct Answer
A. Transfer of funds overseas to be credited to a bank accountExplanation
A Telegraphic Transfer is a method of transferring funds overseas that involves crediting the funds directly to a bank account. This means that the money is not paid out in cash or through a cheque or travel card, but instead, it is electronically transferred to the recipient's bank account in another country. This method is commonly used for international money transfers, allowing individuals and businesses to send money securely and efficiently to bank accounts abroad.Rate this question:
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- 5.
What are the advantages of sending money by a Telegraphic Transfer?
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It is a secure way to send money
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It is a quick way to send money (funds are normally credited within 2-3 business days)
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There are no age or credit restrictions on who can send a transfer
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All of the above
Correct Answer
A. All of the aboveExplanation
Telegraphic Transfer offers several advantages for sending money. Firstly, it is a secure method, ensuring that the money reaches the intended recipient safely. Secondly, it is a quick way to send money, with funds typically being credited within 2-3 business days. Lastly, there are no age or credit restrictions, meaning anyone can send a transfer. Therefore, all of the given options are advantages of sending money by a Telegraphic Transfer.Rate this question:
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- 6.
What currency should you send a Telegraphic Transfer in?
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The currency of the overseas beneficiary (a choice of 130 currencies is available)
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The currency of the overseas beneficiary (a choice of 50 currencies is available)
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The currency of the overseas beneficiary (a choice of 10 currencies is available)
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Funds should always be sent in Australian Dollars
Correct Answer
A. The currency of the overseas beneficiary (a choice of 130 currencies is available)Explanation
The correct answer is to send the Telegraphic Transfer in the currency of the overseas beneficiary because there is a choice of 130 currencies available. This ensures that the recipient receives the funds in their preferred currency, avoiding any additional conversion fees or complications.Rate this question:
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- 7.
What is a Draft?
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A transfer of funds overseas to be paid out in cash
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A cheque in a foreign currency
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A transfer of funds overseas to be credited to a bank account
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A travel card in a foreign currency
Correct Answer
A. A cheque in a foreign currencyExplanation
A draft refers to a cheque in a foreign currency. It is a written order from one party to another, typically a bank, to pay a specific amount of money to a specified recipient. In this case, the cheque is issued in a foreign currency, indicating that it can be used for transactions or payments in that particular currency.Rate this question:
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- 8.
How can our Members receive money from overseas?
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Inward telegraphic transfer
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Cheque in foreign currency to be converted into AUD
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Both of the above
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Neither of the above
Correct Answer
A. Both of the aboveExplanation
Members can receive money from overseas through both inward telegraphic transfer and by receiving a cheque in foreign currency that can be converted into AUD. Inward telegraphic transfer allows for direct and secure transfer of funds from a foreign bank to the member's account. On the other hand, receiving a cheque in foreign currency gives the member the option to convert it into AUD at their convenience. Therefore, both options provide members with ways to receive money from overseas.Rate this question:
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- 9.
Why does Police Credit Union sell foreign exchange?
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To provide an additional member service
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To earn additional fee income
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To ensure we maximize our “share-of-wallet” from each member
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All of the above
Correct Answer
A. All of the aboveExplanation
The Police Credit Union sells foreign exchange for multiple reasons. Firstly, it is to provide an additional member service, allowing members to conveniently exchange their currency. Secondly, it helps the credit union earn additional fee income, which can contribute to its financial stability and growth. Lastly, by offering foreign exchange services, the credit union ensures that it maximizes its "share-of-wallet" from each member, meaning it aims to provide a comprehensive range of services to meet all of their financial needs. Therefore, all of the given options are valid reasons for the Police Credit Union to sell foreign exchange.Rate this question:
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- 10.
Which of our Members are eligible to use the International Payments Service?
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All members
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Only members aged over 18
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Only members with over $10,000 in deposits
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Only members who have been with us for over 5 years
Correct Answer
A. All membersExplanation
All members are eligible to use the International Payments Service. This means that there are no specific criteria or restrictions for members to access and utilize this service. Regardless of age, deposit amount, or length of membership, all members have the privilege to use the International Payments Service.Rate this question:
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- 11.
Which of our Members might find our range of International Payments Services useful?
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Business banking customers who import goods from overseas
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Members from a migrant community who wish to send money overseas
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Members who wish to buy products online from overseas
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All of the above
Correct Answer
A. All of the aboveExplanation
All of the above. Business banking customers who import goods from overseas would find our range of International Payments Services useful as it would facilitate their international transactions. Members from a migrant community who wish to send money overseas would also benefit from our services as they can easily and securely transfer funds to their home countries. Additionally, members who wish to buy products online from overseas can utilize our International Payments Services to make seamless and efficient payments for their purchases.Rate this question:
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- 12.
When might you recommend a Telegraphic Transfer instead of a Draft?
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The beneficiary does not have a bank account
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The sender doesn’t care what exchange rate is used
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The funds are required quickly
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The sender is not an Australian citizen
Correct Answer
A. The funds are required quicklyExplanation
A Telegraphic Transfer is recommended when the funds are required quickly. This is because a Telegraphic Transfer allows for immediate transfer of funds, typically within the same day or within a few hours. On the other hand, a Draft may take longer to process as it involves physical paperwork and may require additional time for clearance. Therefore, if time is of the essence and the sender needs the funds to be received promptly, a Telegraphic Transfer would be the preferable option.Rate this question:
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- 13.
When might you recommend a Draft instead of a Telegraphic Transfer?
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The beneficiary does not have a bank account
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The member wants to pay a lower fee
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The funds are required urgently
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All of the above
Correct Answer
A. The member wants to pay a lower feeExplanation
A draft is a type of payment method that involves the issuance of a physical document, such as a check, which can be used to transfer funds. Compared to a telegraphic transfer, which involves the electronic transfer of funds, a draft may have lower fees associated with it. Therefore, if a member wants to pay a lower fee, recommending a draft instead of a telegraphic transfer would be appropriate.Rate this question:
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- 14.
Why are the exchange rates offered by Police Credit Union different to those promoted on the TV news?
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Exchange rates constantly move and TV rates are indicative only
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The rates on TV are basically “dealers” rates. The costs of providing the service also has to be factored into the rates we offer (similar to a home loan rate being higher than the official cash rate)
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Every financial institution and foreign exchange provider can set its own rates
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All of the above
Correct Answer
A. All of the aboveExplanation
The correct answer is "All of the above." The exchange rates offered by Police Credit Union may be different from those promoted on TV news because exchange rates constantly move and the rates on TV are only indicative. Additionally, the rates on TV are "dealers" rates, and the costs of providing the service also need to be factored into the rates offered by Police Credit Union. Furthermore, every financial institution and foreign exchange provider can set their own rates.Rate this question:
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- 15.
What makes a Draft a particularly convenient method for sending money overseas as a gift?
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A draft can be enclosed with a Christmas or birthday card
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A draft is relatively inexpensive
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A draft can be paid directly into their bank account by the overseas beneficiary
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All of the above
Correct Answer
A. All of the aboveExplanation
A draft is a particularly convenient method for sending money overseas as a gift because it can be enclosed with a Christmas or birthday card, making it a personalized and thoughtful gesture. Additionally, it is relatively inexpensive compared to other methods of transferring money internationally. Moreover, a draft can be paid directly into the bank account of the overseas beneficiary, eliminating the need for them to physically go and collect the money. Therefore, all of the given options make a draft a convenient method for sending money overseas as a gift.Rate this question:
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- 16.
Why might Members use a Draft or Telegraphic Transfer to make an online purchase overseas?
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They don’t have a credit card
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Their credit limit is too low to make the payment
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They want to know what exchange rate is going to be used before making the payment
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All of the above
Correct Answer
A. All of the aboveExplanation
Members might use a Draft or Telegraphic Transfer to make an online purchase overseas if they don't have a credit card, if their credit limit is too low to make the payment, or if they want to know what exchange rate is going to be used before making the payment.Rate this question:
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- 17.
What is an Inward Telegraphic Transfer?
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A transfer of funds from overseas to be paid out in cash
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A cheque in a foreign currency sent from overseas
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A transfer of funds from overseas to be credited to a member’s account
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A travel card in a foreign currency from overseas
Correct Answer
A. A transfer of funds from overseas to be credited to a member’s accountExplanation
An Inward Telegraphic Transfer refers to a transfer of funds from overseas to be credited to a member's account. This means that money is being sent from another country and will be deposited into the recipient's account. It is a common method of international money transfer, allowing individuals to receive funds from abroad directly into their bank account. This option is often chosen for its convenience and security, as the money is electronically transferred and credited to the recipient's account.Rate this question:
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- 18.
What are the advantages of receiving money by Inward Telegraphic Transfer?
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The transaction can be completed as a local transfer so the sender may not need to pay a SWIFT fee
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It is a quick way to send money (funds are normally credited within 2-3 business days)
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Members are not charged the beneficiary deduct fee, so they will receive the full amount of their incoming payment
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All of the above
Correct Answer
A. All of the aboveExplanation
Receiving money by Inward Telegraphic Transfer has several advantages. Firstly, the transaction can be completed as a local transfer, which means the sender may not need to pay a SWIFT fee. This helps in reducing the overall cost of the transaction. Secondly, it is a quick way to send money, with funds being credited within 2-3 business days. This ensures that the recipient receives the money promptly. Lastly, members are not charged the beneficiary deduct fee, allowing them to receive the full amount of their incoming payment. Therefore, all of the above advantages apply to receiving money by Inward Telegraphic Transfer.Rate this question:
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- 19.
What currency should you receive an Inward Telegraphic Transfer in?
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The currency of the overseas sender (a choice of 35 currencies is available)
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The currency of the overseas sender (a choice of 100 currencies is available)
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The currency of the overseas sender (a choice of 10 currencies is available)
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Only AUD transfers are available
Correct Answer
A. The currency of the overseas sender (a choice of 35 currencies is available)Explanation
The correct answer is that you should receive an Inward Telegraphic Transfer in the currency of the overseas sender, with a choice of 35 currencies available. This means that the sender can choose to send the transfer in their local currency, making it more convenient for them and potentially saving on conversion fees. By receiving the transfer in the sender's currency, you may also have more flexibility in managing the funds and potentially avoid additional currency conversion charges.Rate this question:
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- 20.
What fee applies to receiving an Inward Telegraphic Transfer?
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$10
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$20
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$30
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No fee
Correct Answer
A. No feeExplanation
There is no fee applied to receiving an Inward Telegraphic Transfer.Rate this question:
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- 21.
How does the Inward Telegraphic Transfer Service work?
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A member receives funds from overseas via the banking SWIFT network.
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A member receives funds from overseas using Western Union Business Solutions domestic bank accounts
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A member receives funds from overseas using the Western Union agent network
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A member receives foreign cash from overseas
Correct Answer
A. A member receives funds from overseas using Western Union Business Solutions domestic bank accountsExplanation
The correct answer is "A member receives funds from overseas using Western Union Business Solutions domestic bank accounts." This means that when someone uses the Inward Telegraphic Transfer Service, they receive funds from overseas through domestic bank accounts provided by Western Union Business Solutions. This allows for a secure and efficient transfer of funds internationally.Rate this question:
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- 22.
. Members can use the Inward Payment Service in the following situations:
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Receiving regular payments from overseas, such as a pension or salary
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Receiving savings or proceeds from selling an overseas asset, such as property or shares
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Receiving a one-off payment from family or friends overseas as a gift
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All of the above
Correct Answer
A. All of the aboveExplanation
The Inward Payment Service can be used in all of the situations mentioned. It allows members to receive regular payments from overseas, such as pensions or salaries, as well as receive savings or proceeds from selling an overseas asset like property or shares. Additionally, it can be used to receive one-off payments from family or friends overseas as a gift. Therefore, the correct answer is "All of the above."Rate this question:
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- 23.
Which of the following Members might find a Telegraphic Transfer useful?
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A local club or association organising an awards night
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A local club or association pre-paying accommodation costs to an overseas hotel for their upcoming travel arrangements
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A local club or association that needs to make a regular rental payment
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None of the above
Correct Answer
A. A local club or association pre-paying accommodation costs to an overseas hotel for their upcoming travel arrangementsExplanation
A local club or association pre-paying accommodation costs to an overseas hotel for their upcoming travel arrangements might find a Telegraphic Transfer useful. This is because a Telegraphic Transfer is a secure and efficient way to transfer funds internationally. By using a Telegraphic Transfer, the club or association can ensure that the payment reaches the overseas hotel promptly and without any complications. This method is particularly useful when making large or time-sensitive payments, such as pre-paying for accommodation costs for upcoming travel arrangements.Rate this question:
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Quiz Review Timeline (Updated): Jun 6, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Jun 06, 2023Quiz Edited by
ProProfs Editorial Team -
May 26, 2015Quiz Created by
WUBS
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