Community First - International Payments Training Module 1 - Product Knowledge & Selling Skills
Take the international payments quiz to assess your knowledge of how to send and receive money to/from overseas. Choose one answer for each question. If you score 80% or more you will receive a $20 gift voucher, and if you score 100% you will receive a $50 gift voucher. You will have two attempts to complete this quiz and score 80% or more.
- 1.
What currency should you send a telegraphic transfer in?
- A.
The currency of the overseas beneficiary (ie the person receiving the money)
- B.
Funds should always be sent in US Dollars
- C.
Funds should always be sent in Australian Dollars
- D.
No choice is offered
Correct Answer
A. The currency of the overseas beneficiary (ie the person receiving the money)Explanation
When sending a telegraphic transfer, it is recommended to send the funds in the currency of the overseas beneficiary, which is the person receiving the money. This ensures that the recipient receives the funds in their local currency without the need for conversion, saving them from potential exchange rate fluctuations and fees.Rate this question:
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- 2.
What is a Telegraphic Transfer?
- A.
Transfer of funds overseas to be paid out in cash
- B.
Cheque in a foreign currency
- C.
Transfer of funds overseas to be credited to a bank account
- D.
Travel card in a foreign currency
Correct Answer
C. Transfer of funds overseas to be credited to a bank accountExplanation
A Telegraphic Transfer refers to the transfer of funds from one bank account to another overseas bank account. It involves electronically sending the funds to the recipient's bank account, ensuring a secure and efficient transfer. This method is commonly used for international business transactions or sending money to family or friends abroad. Unlike cash or cheques, the funds are directly credited to the recipient's bank account, providing convenience and ease of access to the transferred funds.Rate this question:
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- 3.
What is an IBAN?
- A.
A standard type of account number required for all transfers to European (and certain other) countries
- B.
A standard type of account number required for all transfers to the USA
- C.
A standard type of account number required for all transfers to China
- D.
All of the above
Correct Answer
A. A standard type of account number required for all transfers to European (and certain other) countriesExplanation
An IBAN is a standard type of account number that is required for all transfers to European (and certain other) countries. It is a unique identifier that helps ensure that funds are transferred accurately and securely between different banks and countries. IBANs are used to facilitate international transactions and to comply with banking regulations.Rate this question:
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- 4.
What is a Draft?
- A.
A transfer of funds overseas to be paid out in cash
- B.
A cheque in a foreign currency
- C.
An electronic transfer of funds overseas to be credited to a bank account
- D.
A travel card in a foreign currency
Correct Answer
B. A cheque in a foreign currencyExplanation
A draft is a type of payment instrument that is similar to a cheque, but it is issued in a foreign currency. It allows the payer to make a payment in a foreign currency to the payee. The payee can then deposit the draft into their bank account or cash it at a bank. This method is commonly used for international transactions where the payer and payee are in different countries and need to exchange funds in a different currency.Rate this question:
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- 5.
What personal information is required when sending a Draft or Telegraphic Transfer?
- A.
The sender’s name and street address
- B.
The beneficiary’s name and street address
- C.
The sender’s membership number
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
When sending a Draft or Telegraphic Transfer, all of the above personal information is required. The sender's name and street address are necessary for identification purposes, while the beneficiary's name and street address are required to ensure the transfer reaches the intended recipient. Additionally, the sender's membership number may be needed for verification or tracking purposes. Therefore, all of the mentioned personal information is necessary for a successful transfer.Rate this question:
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- 6.
What products have a PDS (Product Disclosure Statement)
- A.
Drafts only
- B.
Drafts, Telegraphic Transfers and Money in Minutes
- C.
Telegraphic transfers only
- D.
None of these products require a PDS
Correct Answer
A. Drafts onlyExplanation
The correct answer is "Drafts only." A Product Disclosure Statement (PDS) is a document that provides information about a financial product, including its features, risks, and fees. In this case, only the product "Drafts" requires a PDS, while the other options, including Telegraphic Transfers, Money in Minutes, and None of these products, do not require a PDS.Rate this question:
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- 7.
How can our members receive money from overseas?
- A.
Inward telegraphic transfer
- B.
Cheque in foreign currency to be converted into AUD
- C.
Both of the above
- D.
Neither of the above
Correct Answer
C. 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 transfer of funds from a foreign bank account to the member's account, while receiving a cheque in foreign currency provides the option to convert the funds into the local currency. Therefore, both options are available for members to receive money from overseas.Rate this question:
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- 8.
Why do we sell foreign exchange?
- A.
To provide an additional customer service
- B.
To earn additional fee income
- C.
To provide cross-selling opportunities for our other products
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The reason why we sell foreign exchange is because it provides an additional customer service, allows us to earn additional fee income, and provides cross-selling opportunities for our other products. By offering foreign exchange services, we are able to cater to the needs of customers who require currency exchange for international travel or business purposes. This not only enhances customer satisfaction but also generates additional revenue through fees charged for the exchange transactions. Additionally, selling foreign exchange opens up opportunities to cross-sell other products and services to customers, further expanding our business offerings.Rate this question:
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- 9.
Which of our members are eligible to use the international payments service?
- A.
All members
- B.
Only members aged over 18
- C.
Only members with over $10,000 in deposits
- D.
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 requirements or restrictions for members to access 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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- 10.
What makes a Draft a particularly convenient method for sending money overseas as a gift?
- A.
A draft can be enclosed with a Christmas or birthday card
- B.
A draft is relatively inexpensive
- C.
A draft can be paid directly into their bank account by the overseas beneficiary
- D.
All of the above
Correct Answer
D. 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 personal and thoughtful gesture. Additionally, it is relatively inexpensive compared to other methods of sending money internationally. Furthermore, a draft can be paid directly into the bank account of the overseas beneficiary, ensuring a quick and convenient transfer of funds.Rate this question:
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- 11.
When might you recommend a telegraphic transfer instead of a draft?
- A.
The beneficiary does not have a bank account
- B.
The sender doesn’t care what exchange rate is used
- C.
The funds are required quickly
- D.
The sender is not an Australian citizen
Correct Answer
C. The funds are required quicklyExplanation
A telegraphic transfer is a faster method of transferring funds compared to a draft. In situations where the funds are required quickly, it would be recommended to use a telegraphic transfer instead of a draft. This is because a telegraphic transfer allows for immediate transfer of funds, while a draft may take longer to process and clear.Rate this question:
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- 12.
Why are the exchange rates offered by us different to those promoted on the TV news?
- A.
Exchange rates constantly move and TV rates are indicative only
- B.
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)
- C.
Every financial institution and foreign exchange provider can set its own rates
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The reason why the exchange rates offered by the company are different from those promoted on TV news is because exchange rates constantly move and the rates on TV are only indicative. Additionally, the rates on TV are "dealers" rates which means that the costs of providing the service also need to be factored in. Moreover, every financial institution and foreign exchange provider has the freedom to set its own rates. Therefore, all of the given options are valid explanations for the difference in exchange rates.Rate this question:
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- 13.
A business banking customer might find the Telegraphic Transfer service useful because
- A.
It enables them to buy goods from overseas and pay the supplier in their own currency
- B.
It enables them to defer the payment date for their order
- C.
It gives them a bigger credit facility
- D.
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 correct answer is that the Telegraphic Transfer service enables business banking customers to buy goods from overseas and pay the supplier in their own currency. This is beneficial because it eliminates the need for currency conversion and reduces the risk of exchange rate fluctuations. It also simplifies the payment process and allows for easier tracking of international transactions.Rate this question:
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- 14.
Why might members use a Draft or Telegraphic Transfer to make an online purchase overseas?
- A.
They don’t have a credit card
- B.
Their credit limit is too low to make the payment
- C.
They want to know what exchange rate is going to be used before making the payment
- D.
All of the above
Correct Answer
D. 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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- 15.
When might you recommend a draft instead of a telegraphic transfer?
- A.
The beneficiary does not have a bank account
- B.
The member wants to pay a lower fee
- C.
The funds are required urgently
- D.
All of the above
Correct Answer
B. The member wants to pay a lower feeExplanation
A draft may be recommended instead of a telegraphic transfer when the member wants to pay a lower fee. Unlike telegraphic transfers, drafts typically have lower fees associated with them, making them a more cost-effective option for transferring funds.Rate this question:
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- 16.
What is an Inward Telegraphic Transfer?
- A.
A transfer of funds from overseas to be paid out in cash
- B.
A cheque in a foreign currency sent from overseas
- C.
A transfer of funds from overseas to be credited to a member’s account
- D.
A travel card in a foreign currency from overseas
Correct Answer
C. A transfer of funds from overseas to be credited to a member’s accountExplanation
An inward telegraphic transfer refers to the transfer of funds from overseas to be credited to a member's account. This means that money is being sent from another country and deposited into the account of a member, typically in a bank or financial institution. This method allows for secure and efficient transfer of funds internationally, ensuring that the recipient has access to the money in their account.Rate this question:
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- 17.
What are the advantages of receiving money by Inward Telegraphic Transfer?
- A.
The transaction can be completed as a local transfer so the sender may not need to pay a SWIFT fee
- B.
It is a quick way to send money (funds are normally credited within 2-3 business days)
- C.
Members are not charged the beneficiary deduct fee, so they will receive the full amount of their incoming payment
- D.
There are no age or credit restrictions on who can send a transfer
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
Receiving money by Inward Telegraphic Transfer has several advantages. Firstly, the transaction can be completed as a local transfer, eliminating the need for the sender to pay a SWIFT fee. Secondly, it is a quick way to send money, with funds usually being credited within 2-3 business days. Additionally, members are not charged a beneficiary deduct fee, ensuring they receive the full amount of their incoming payment. Lastly, there are no age or credit restrictions on who can send a transfer. Therefore, all of the above advantages apply to receiving money by Inward Telegraphic Transfer.Rate this question:
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- 18.
What currency should you receive an Inward Telegraphic Transfer in?
- A.
The currency of the overseas sender (a choice of 35 currencies is available)
- B.
The currency of the overseas sender (a choice of 50 currencies is available)
- C.
The currency of the overseas sender (a choice of 10 currencies is available)
- D.
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 "The currency of the overseas sender (a choice of 35 currencies is available)". This means that when receiving an Inward Telegraphic Transfer, the currency should be the same as the currency of the overseas sender. There are 35 different currencies available to choose from, allowing for flexibility in receiving the transfer in the desired currency.Rate this question:
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- 19.
What fee applies to receiving an Inward Telegraphic Transfer?
- A.
$10
- B.
$20
- C.
$30
- D.
Free
Correct Answer
D. FreeExplanation
The correct answer is "free". This means that there is no fee applied to receiving an Inward Telegraphic Transfer.Rate this question:
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- 20.
How does the Inward Telegraphic Transfer Service work?
- A.
A member receives funds from overseas via the banking SWIFT network
- B.
A member receives funds from overseas using Western Union Business Solutions domestic bank accounts
- C.
A member receives funds from overseas using the Western Union agent network
- D.
A member receives foreign cash from overseas
Correct Answer
B. 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 the Inward Telegraphic Transfer Service works by allowing a member to receive funds from overseas through Western Union Business Solutions' domestic bank accounts. This service enables the transfer of funds internationally and facilitates the process of receiving money from abroad.Rate this question:
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- 21.
Members can use our Inward Payments Service in the following situations:
- A.
Receiving regular payments from overseas, such as a salary
- B.
Receiving savings or proceeds from selling an overseas asset, such as property or shares
- C.
Receiving a one-off payment from family or friends overseas as a gift
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "All of the above". This means that members can use the Inward Payments Service in all of the situations mentioned, which include receiving regular payments from overseas, receiving savings or proceeds from selling an overseas asset, and receiving a one-off payment from family or friends overseas as a gift.Rate this question:
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- 22.
How does a member access information on the Inward Telegraphic Transfer service?
- A.
The member should complete the relevant information on the online form located on our website, follow the instructions and forward payment details to the overseas sender
- B.
The member should complete the relevant information in the online form located on our website and wait until payment is received
- C.
The member should ask the overseas sender to send a SWIFT payment via their bank
- D.
The member needs to get our approval to receive a transfer
Correct Answer
A. The member should complete the relevant information on the online form located on our website, follow the instructions and forward payment details to the overseas senderExplanation
The correct answer is that the member should complete the relevant information on the online form located on the website, follow the instructions, and forward payment details to the overseas sender. This answer suggests that accessing information on the Inward Telegraphic Transfer service involves completing an online form and providing payment details to the sender.Rate this question:
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- 23.
When might business banking customers use the Inward Telegraphic Transfer service?
- A.
If they are importing goods or services from overseas
- B.
If they wish to lock in an exchange rate for a future transaction
- C.
If they are exporting goods or services overseas
- D.
If they are shipping goods interstate
Correct Answer
C. If they are exporting goods or services overseasExplanation
Business banking customers might use the Inward Telegraphic Transfer service if they are exporting goods or services overseas. This service allows them to receive payments from international customers directly into their bank account. It provides a secure and convenient way to receive funds from overseas, ensuring smooth and efficient international transactions.Rate this question:
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- 24.
Why do we offer the Inward Telegraphic Transfer service?
- A.
To offer our members a fee-free alternative to the SWIFT system
- B.
We receive non-interest income from each transaction
- C.
To offer our members a simple way of providing the required instructions to an overseas sender
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The reason why we offer the Inward Telegraphic Transfer service is because it provides our members with a fee-free alternative to the SWIFT system. Additionally, we receive non-interest income from each transaction, which is another benefit of offering this service. Moreover, it offers our members a simple and convenient way of providing the necessary instructions to an overseas sender. Therefore, all of the given options are valid reasons for offering the Inward Telegraphic Transfer service.Rate this question:
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- 25.
When will the Inward Telegraphic Transfer service be available?
- A.
It is available now
- B.
It will be launched for Christmas
- C.
It will be launched next year
- D.
It will be launched next financial year
Correct Answer
A. It is available nowExplanation
The given correct answer states that the Inward Telegraphic Transfer service is available now. This means that the service is currently accessible and can be used by customers.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Jun 16, 2014Quiz Created by
WUBS
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