Trivia Finance (Level 3)

A financial contract in which a small certain payment is exchanged for someone to be indemnified against large uncertain losses:

• Financial Swap Arrangement

• Insurance

• Subordinated Debenture

• Mutual Fund

At what maximum rate the “Simpanan Asas” can be withdrawn for investment purpose?

• 8%

• 10%

• 30%

• 11%

Fill out the right color: At traditional lunar new years in many Asian countries, children receive lucky money in __________ envelopes.

• Green

• Red

• Blue

• Rainbow

What is liquidity risk ? 

• Risk that a sudden surge in liability withdrawals 

• Allows manager to make important borrowing priority decisions 

• Manager analyse the effect of IR increase or decrease 

• Examine the nature of the borrower’s business in the context of its industry 

Financial markets and institutions ___________ .

• involve the movement of huge quantities of money.

• affect the profits of businesses.

• affect the types of goods and services produced in an economy.

• do all of the above.

Determine which of the following statements is most similar to the semi-strong version of the efficient markets hypothesis ?

• It should not be possible to consistently profit by selling winners and hanging on to losers. 

• It should not be possible to consistently profit by trading on information in past prices.

• It should not be possible to consistently profit by trading on any public information, such as that found on the Internet or in the financial press. 

• It should not be possible to consistently profit by trading on private information, such as that obtained from a thorough analysis of the company and its industry. 

The systematic (market) risk associated with an individual stock is most closely identified with the

• Standard deviation of the returns on the stock.

• Beta of the stock

• Coefficient of variation of returns on the stock.

• Coefficient of variation of returns on the market.

The Korean currency has been Won. What is the name of currency in China?

• Hong Kong dollar

• China dollar

• Baht

• Renminbi

In takaful, if the participants passed away within the protection period of time, the beneficiary is entitled to

• The share of profits made from the accumulated paid contribution and tabarru contribution.

• A whole amount of paid contribution

• The paid contribution and share of profits made out of the accumulated paid premium.

• The paid contribution, share of profits made out of the accumulated paid contribution and outstanding tabarru’ contribution.

Overnight Policy Rate, what is it and what are the current rate in Malaysia?

• The amount charged on top of the principal by a lender to a borrower for the use of assets. 5.3%

• Applies to the amount earned at a bank or credit union from a deposit account. 1.21%

• The interest rate at which a depository institution can lend or borrow funds that are required to meet overnight balances. 1.75%

• Rate that controls and give impact on inflation and nominal interest rate. 0.5%