S3 BS chpt 1 financial markets

. Bursa Malaysia Derivative provides futures trading such as crude palm oil futures, FTSH Bursa Malaysia KLCI futures and other futures. Which of the following descriptions is true to the concept of futures?

• A Mr Yang, a manager, buys the crude paim oil futures from a commercial bank.

• B Mr Lim, a manager, buys the rubber futures which is deemed as a contract.

• C Mr Wong, a manager, can settle commodity futures at the expiration date in cash.

• D Mr Zheng, a manager, sells the futures at an agreed price at any market.

XW Group Company planned to expand its business. Therefore it sold new shares below market price to raise money as well as to give existing shareholders the priority to purchase the shares.

Which type of shares is mentioned in the above example?

• A Bonus shares

• B Blue chips

• C Rights issues

• D Preference shares

Mr Fan invested RM 20,000 in Bursa Malaysia. What are the benefits of investing in shares to Mr Fan?

I enjoy fixed income annually

II convert to cash easily

III earn capital gain

IV enjoy interest

• A I, III

• B I, IV

• C II, III

• D II, IV

Mr Lee is an individual investor who bought Company XYZ shares through a website of stockbroking

company after analysing FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) for the last

six months.

Which function of stock index is relevant to the above example?

• A to help companies make production decision

• B to provide fundraising facilities

• C to provide a reference for buying and selling stocks

• D to reflect country economic policies

Mr Fang is the preference shareholder of Da Ming Bhd.

Which of the following descriptions regarding Mr Fang is true?

• A Mr Fang is a creditor of the company

• B Mr Fang enjoys a fixed dividend

• C Mr Fang can participate in the election of directors

• D Mr Fang will be the last to receive share capital if the company goes into liquidation

Which of the following enterprise organisations is allowed to distribute profit in the form of dividend?

• A Aikang Clinic

• B Chan & Lim Partnership

• C DF Public Limited Company

• D The Associated Chinese Chambers of Commerce and Industry of Malaysia

Mr Lim is a high risk tolerance. Which investment tool is suitable for Mr Lim?

• A Shares

• B Debenture

• C Fixed deposit of bank

• D Fixed income unit trust

Jack has a sum of money and is looking for a low-risk investment. Which of the following investment is suitable for Jack?

• A Real estate

• B Ordinary shares

• C Preference shares

• D Government bond

Which of the following methods enable trader to avoid delivery of commodity in a future transaction?

I Arbitrage

II Hedging

III Credit sale

IV Spot trading

• A I, II

• B I, III

• C II, IV

• D III, IV

Xie Xiao Mei is responsible for the duty of international trade in a company. Which of the following items should Miss Xie manage?

I Foreign exchange rates

II Customs clearance procedures

III Product design and development

IV FOB and CIF

• A I , II , III

• B I，II，IV

• C 111 , IV

• D II , III，IV