FUNCTIONS AND OPERATION OF TREASURY

Following is a comparison between Interbank and Retail foreign exchange market is true, EXCEPT: (INTERBANK Vs. RETAIL)

• Participant: Financial institutions Vs. Financial institutions and non-financial institutions

• Standard amount: Any amount Vs. Below USD 3.0 million

• Settlement date: Spot date Vs. any time

• Pricing: Interbank rates Vs. Commercial rates

Bank A has RM 5 million long positions. Which of the following help bank A manage its long positions?

• Issue money market instruments value equal to RM 5 million

• Buy money market instruments issued by other banks

• Sell their money market papers

• Borrow from other banking institutions

Islamic Bank Royal defined Nostro account as:

• Our account of our money, held by the other bank

• Our account of other bank’s money, held by the other bank

• Our account of other bank’s money, held by us

• Our account of our money, held by us

Ar-Rajhi banks defined Vostro account as:

• Our account of our money, held by the other bank

• Our account of other bank’s money, held by the other bank

• Our account of other bank’s money, held by us

• Our account of our money, held by us

Malaysian importer can make settlement for his purchase from Australia amounting AUD 50,000 using any one of the payment methods:

• Payment using importer currency equivalent to RM 50,000

• Payment using US dollar equivalent to AUD 50,000

• Payment using exporter currency equivalent to RM 50,000

• Payment using Australian dollar (AUD) equivalent to USD 50,000