PFM TOPIC 6

Which of the following is NOT a rule of borrowing?

• Borrow for productive purposes

• Borrow within your means

• Borrow without planning

• A borrower has a moral commitment

Which of the following is a source of borrowing from a licensed financial institution?

• Friends and family

• Bank

• Pawn shop

• Private lender

Which of the following is a licensed source of borrowing?

• Unlicensed money lender

• Friends and family

• Co-operatives

• Informal savings group

What is the primary role of Bank Rakyat among credit co-operatives?

• To provide luxury loans

• To promote savings and thrift among the rural population

• To offer credit cards

• To compete with commercial banks

Which organization oversees licensed credit companies in Malaysia?

• Kementerian Perumahan dan Kerajaan Tempatan

• Ministry of Agriculture

• Kementerian Kewangan

• Bank Negara Malaysia

What is the common term used for unlicensed money lenders?

• Licensed credit companies

• Loan sharks

• Co-operatives

• Financial advisers

What is one of the main characteristics of a loan shark?

• They offer loans with low interest rates

• They provide flexible repayment plans

• They charge very high interest rates

• They are regulated by the government

Which of the following is a benefit of secured loans?

• Higher interest rates

• Easier to obtain

• No risk of losing assets

• No need for collateral

Why do secured loans generally have lower interest rates?

• Because the lender takes on less risk due to collateral

• Because they are harder to obtain

• Because they have shorter repayment terms

• Because they are not backed by assets

Which of the following is NOT a feature of secured loans?

• Backed by assets

• Higher interest rates

• Easier to obtain

• Possibility of losing the asset if the loan is unpaid