30 Questions
What is the main focus of Chapter 1 in the FIN367 course?
Fundamental principles of bank credit
What is one of the learning objectives of Chapter 1 in FIN367?
Clarifying the importance of bank credit to the bank business
Which aspect is covered under the topic 'Introduction to Bank Credit' in FIN367?
Bank lending business
What does Chapter 1.1.3 of FIN367 focus on?
Lending decision framework in business banking
According to Chapter 1.2, what does it cover regarding bank credit?
Rules and regulations governing bank credit in Malaysia
What is the definition of 'banking business' according to the Financial Services Act 2013?
Accepting deposits, paying or collecting cheques, and providing finance
In FIN367, what is the focus of sub-topic 1.1.1.2?
Bank lending business
What falls under the scope of 'provision of finance' as per the Financial Services Act 2013?
Factoring business, purchase of bills of exchange, and accepting or guarantee of any liability
Which area of universal banking is responsible for managing the bank's funding and liquidity needs?
Treasury
What is an important consideration for banks in granting more loans to SMEs?
Properly undertaking credit analysis to mitigate credit risk
What is the impact of SME credit risk on a bank's profitability?
Negative impact on profitability
What is deducted from the interest income in a bank's profit & loss account?
Interest paid
Which activity contributes a large part to the bank credit portfolio according to the text?
Credit to SMEs
What does the provision of finance include according to the Financial Services Act 2013?
Lending of money and purchase of bills of exchange
In SME lending, what is the main focus of credit request analysis?
Assessing the borrower's credit history and financial health
What is the primary responsibility of evaluating SME lending applications?
Analyzing business plan
Under types of business credit borrowers, what defines a 'mature' borrower?
A borrower with strong credit history and stable financial performance
What does quantitative analysis of financial statements involve in SME lending?
Examining financial ratios and trends in the financial statements
What is the key focus of understanding financial statements in SME lending?
Interpreting the financial position and performance of the borrower
What aspect is covered under the topic 'Types of Business Credit Products and Pricing Strategy' in SME lending?
Understanding various loan products and their pricing strategies
Which of the following is NOT a criterion used to determine the definition of SMEs in Malaysia?
Being a public-listed entity on the main board
What percentage of total employment do SMEs represent in Malaysia, according to the text?
65%
What is the borrowing capacity characteristic that is NOT mentioned in the learning objectives of FIN367?
Interest rate risk
According to the text, what is a new criterion used in the revised SME definition for the manufacturing sector?
Sales turnover not exceeding RM30 million
Which sector is explicitly mentioned as being included in the new SME definition?
Construction
According to the learning objectives, what type of analysis is NOT mentioned in connection to the 5Cs and the credit report?
Market analysis
What type of entities are excluded from the revised SME definition, according to the text?
Publicly-listed companies on the main board
What is NOT a type of bank business lending mentioned in the text?
"On and off" basis banking
According to the text, what characteristics are used to determine various types of credit facilities?
"Short-term" and "long-term"
What is NOT explicitly mentioned as a sector covered by the new SME definition?
"Publicly-listed" sector
Test your understanding of the fundamental principles of bank credit and the lending decision framework in business banking. This quiz covers topics such as introduction to bank credit, the credit process cycle, and rules and regulations related to bank lending.
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