ISB656 Ch02 Capital Market Infra

Multiple Choice

Regulators of Malaysian Capital Market are Bank Negara Malaysia, Securities Commission and INCEIF.

• True

• False

Multiple Choice

Which one of the followings is NOT a function of BNM?

• To issue currency in Malaysia and to keep reserves safeguarding the value of the currency.

• To provide superior Information on credit risk of financial institution

• To act as a banker & financial adviser to the government.

• To hold and manage the foreign reserves of Malaysia

Multiple Choice

What is the role of special-purpose institutions such as Malaysian Islamic Financial Centre (MIFC), Bursa Malaysia, Bursa Suq-al-Sila and International Shariah Research Academy for Islamic Finance (ISRA)?

• To monitor & evaluate the performance of Malaysian financial systems

• To give & withdraw licenses, provide regulations and supervise each of the financial institutions within the country.

• To rate credit worthiness of Sovereign’s long term obligations.

• To promote transparency and instil confidence

Multiple Choice

Main objective of the INCEIF & ISRA

• To approve issues of securities by FIs licensed under Financial Services Act 2013 and Islamic Financial Services 2013.

• To provide a better educational facilities for international students

• To increase the number of experts in Islamic banking and finance areas

Multiple Select

Which statement(s) are TRUE about the Securities Commission?

• It is a statutory body formed under the Securities Commission Act 1993 (SCA) which reports to the Minister of Finance.

• It has the power to investigate and enforce the areas within its jurisdiction.

• It is a statutory body wholly owned by the Government of Malaysia

• The SC is a self-funding organisation

Multiple Choice

LFX is a web based financial exchange that provides listing and trading facilities for a wide range of financial and non-financial products as well as Islamic financial products which offers a 24hours and 7 days trading system that will enhance global participation including offshore and onshore market.

• True

• False

Multiple Choice

Members of Shariah Advisory Council, Securities Commission are qualified individuals who can present Shariah opinions and have vast experience in the application of the Shariah, particularly in the areas of Islamic finance & economics.

The Council will advises SC on ICM compliance matters, provides Shariah guidance and acts as a reference point for industry.

• True

• False

Poll

The ICM functions as a parallel market to the conventional capital market, and plays a complementary role to the Islamic banking system in broadening and deepening the Islamic financial markets in Malaysia.

• True

• False

Multiple Choice

The main differences between the requirements in order to be listed on the Main Market, ACE Market and LEAP Market in Bursa Malaysia are in term of minimum paid up capital, profit track record and its Shariah compliance investments.

• True

• False

Multiple Choice

Which one of the followings is NOT TRUE about credit rating institutions?

• An independent rating agency

• Provide a summary of complex information in a simple and readily understood formal manner

• To enhance the corporate image and visibility and hence it induces a healthy discipline on corporate.

• It has the power to investigate and enforce the areas within its jurisdiction.

Multiple Choice

RAM maintains its independence and credibility with no particular shareholder having a majority stake, and its operations and business are principally directed by its senior management team.

• Yes

• No

Multiple Choice

Which one is the type of ratings offered by RAM

• Bond Rating

• Issue Rating

• Capital Rating

• Finance Rating

Multiple Choice

Compared to RAM, MARC undertakes ratings of corporates and corporate debt issues, including Islamic capital market instruments, asset-backed securities, as well as financial strength ratings of financial institutions and insurance companies

• True

• False

Multiple Choice

Which one is NOT a rating offered by MARC?

• Issuer Ratings

• Islamic Capital Market Instrument Ratings

• Structured Finance Ratings

• Insurer Financial Strength Ratings

• Shariah Advisory Ratings