Mid-Term EFCB313 Sem 1 Year 2024

What is the main role of Bank Negara Malaysia in the financial system?

• Providing retail banking services

• Regulating and supervising all licensed financial institutions

• Advising clients on strategic decisions

• Managing activities in the primary and secondary market

What is the main source of funds for commercial banks?

• Deposits from customers

• Loans and advances

• Investment in marketable securities

• Capital and reserves

What is the primary function of Investment banks related to corporate finance?

• Advising clients on strategic decisions

• Raising funds in the primary market (Initial Public Offering)

• Providing retail banking services

• Managing activities in the secondary market

What is the main use of funds for Investment banks?

• Loans and advances

• Capital and reserves

• Deposits from large corporations

• Purchase of Treasury Bills

What is the main function of commercial banks in the financial system?

• Assisting public and private companies in raising funds

• Participating in trading in money and fixed income instruments

• Accepting deposits and providing loans to individuals and businesses

• Providing a well-protected fund investment system

What is the main function of commercial banks?

• Accepting deposits and providing loans

• Offering investment advice

• Facilitating money transfers

• Providing insurance services

What is the primary role of Non-Bank Financial Institutions (NBFI)?

• Offering savings accounts

• Providing mortgage loans

• Promoting economic activities

• Issuing credit cards

What is the main risk faced by financial institutions related to non-payment of borrowed funds?

• Liquidity risk

• Interest rate risk

• Operational risk

• Credit risk

How can banks manage operational risks effectively?

• Continuing education and research

• Providing inadequate training to staff

• Investing in outdated technology

• Offering limited products and services

What is the main function of financial markets?

• Providing insurance services

• Channeling funds from savers to borrowers

• Producing goods and services

• Building infrastructure projects