Banking System Overview

Play an AI-generated podcast conversation about this lesson

When was Bank Negara Malaysia (BNM) established?

26th January 1957
26th January 1963
26th January 1961
26th January 1959 (correct)

What is the main objective of Bank Negara Malaysia?

To manage international reserves only
To regulate and supervise all financial institutions
To promote and maintain financial instability
To promote and maintain monetary and financial stability (correct)

Which of the following acts is NOT related to Bank Negara Malaysia?

Employment Act 1955 (correct)
Takaful Act 1984
Central Bank of Malaysia Act 2009
Financial Services Act 2013

What is the primary role of a central bank in the banking system?

To act as a regulator and supervisor (C) Signup and view all the answers

What is one of the key roles of Bank Negara Malaysia?

To act as banker and adviser to the government (C) Signup and view all the answers

What is another key objective of Bank Negara Malaysia?

To promote sound and efficient financial systems (B) Signup and view all the answers

What was the result of the merger of finance companies with commercial banks?

The creation of a stronger and more focused banking system (D) Signup and view all the answers

What is the outcome of the significant changes in the financial structure?

The establishment of a one-stop center banking system (D) Signup and view all the answers

What is Bank Negara Malaysia's role in the financial system?

It is the regulator and supervisor of the financial system (B) Signup and view all the answers

What is the goal of the country in terms of Islamic finance?

To become a regional hub for Islamic finance (A) Signup and view all the answers

What is the role of banking institutions in the financial system?

To provide banking facilities and services to meet financial needs (B) Signup and view all the answers

What is the result of the issuance of more licenses by BNM to establish Islamic banks?

The establishment of more Islamic banks (B) Signup and view all the answers

What is the process of creating and selling assets with lesser risk to one party in order to buy assets with greater risk from another party referred to as?

Asset transformation (A) Signup and view all the answers

What is the primary way that financial intermediaries make profits?

By reducing transactions costs (C) Signup and view all the answers

What benefit do depositors receive from financial intermediaries?

The ability to earn interest on checking and savings accounts (B) Signup and view all the answers

What is the function of Bank Negara Malaysia (BNM) in the financial system?

All of the above (D) Signup and view all the answers

What is the benefit of financial intermediaries providing a diversified portfolio of instruments?

It allows investors to diversify their risk (A) Signup and view all the answers

What is the term for the process of providing more choices of maturity for both investors and borrowers?

Maturity intermediation (D) Signup and view all the answers

What is the responsibility of the Bank as banker and financial agent to the Government?

To keep account of Government moneys and undertake the issue and management of securities (D) Signup and view all the answers

Under what circumstances may the Bank advise the Government on economic matters?

Upon request by the Government or where the Bank considers it necessary (B) Signup and view all the answers

What is the maximum period for which temporary financing extended to the Government must be repaid?

Three months after the end of the financial year (C) Signup and view all the answers

What is the purpose of the Bank's membership in the Islamic Financial Services Board?

To exercise the rights and perform the obligations arising from the membership (B) Signup and view all the answers

What is the basis for the temporary financing extended to the Government by the Bank?

Terms prevailing in the market (B) Signup and view all the answers

What is the purpose of the Bank's membership in international organizations?

To exercise the rights and perform the obligations arising from the membership (C) Signup and view all the answers

How many parts does the Act regulating takaful business have?

4 (A) Signup and view all the answers

What is the main objective of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001?

To prevent money laundering and terrorism financing offences (D) Signup and view all the answers

What is the term for an arrangement consistent with sound takaful principles for re-takaful of liabilities?

Retakaful (A) Signup and view all the answers

What is the penalty for committing the offence of money laundering?

Fine not exceeding five million ringgit or imprisonment for a term not exceeding five years (B) Signup and view all the answers

What is the term for a company or society that carries on takaful business?

Takaful operator (C) Signup and view all the answers

What is the purpose of the Development Financial Institutions Act 2002?

To promote the development of effective and efficient development financial institutions (C) Signup and view all the answers

What is the term for a person who engages in a transaction that involves proceeds of any unlawful activity?

Money launderer (D) Signup and view all the answers

What is the role of the Syariah Advisory Council?

To provide advice on Syariah matters relating to takaful business (C) Signup and view all the answers

How many sections does the Act regulating takaful business have?

69 (B) Signup and view all the answers

When did the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 come into force?

15 January 2002 (B) Signup and view all the answers