CHAPTER 1 AN OVERVIEW OF ISLAMIC BANKING AND BANK MANAGEMENT

Bank Negara Malaysia (BNM) acts as controller and supervisor for all the banking institutions in Malaysia.

• TRUE

• FALSE

The two basic principles of Islamic banking are prohibition of riba and involvement in Shariah approved activities

• TRUE

• FALSE

The banking system is considered as the second largest component of financial system in Malaysia after capital market.

• TRUE

• FALSE

Reliability of bank management is determined by a good risk management by the bank itself.

• TRUE

• FALSE

Deficit in capital adequacy of the banks can affect the bank operation as whole.

• TRUE

• FALSE

Below are the sources of funds of Islamic Banks EXCEPT _______?

• Current account deposits

• Saving account deposit

• Investment funds

• Personal financing

Below are the uses of funds of Islamic Banks EXCEPT _______?

• Retail financing

• Short term investment

• Corporate financing

• Saving account deposit

Which formula is correct for the Balance Sheet?

• Assets = Liabilities + Equities

• Assets = Liabilities - Equities

• Assets + Liabilities = Equities

• Assets - Liabilities = Equities

Below are the principles of Islamic Banking EXCEPT _________?

• Prohibition of Riba

• Profit and Loss Sharing

• Involved in Non Shariah compliant activities

• Prohibition of Gharar

Which act replaced by Islamic Financial Services Act 2013?

• Islamic Banking Act 1983

• Banking and Financial Act 1989