FIN360_QUIZ 1

Definition of bank according to Section 2 of FSA 2013: A bank means a person which carryout banking business of.........................EXCEPT

• Receiving deposit (money) in any currency account or deposit account.

• Paying cheques drawn and paid by customers.

• Providing loan and advances to customers.

• Any provisions as allowed by the MOF, examples are REIT and Sukuk

Which laws to govern banks and financial institution is NOT true?

• FSA 2013

• Islamic Banking Act 1983

• Insurance Act 1996

• BAFIA 1987

In Malaysia, no person is permitted to carry on business of banking unless it is a ​ _________  company and it holds a valid ​______ from Ministry of Finance.

• Private limited, grant

• Private limited, license

• Public listed, lisence

• Public listed, certificate

A person is a customer only if he/she has an account with the bank. This definition is similar to the case of.....

• Woods vs Martin (1959)

• Great Western Railway vs London & Country Banking (1901)

• Hedley Byrne vs Heller (1963)

• Oriental Bank vs Rubber Industry (1957)

Which of the following is the DUTY of a banker?

• Duty to charge reasonable interest

• Duty to expect customer to take due care when issuing cheques

• Duty to use money in appropriate ways

• Secrecy of customer accounts

Which of the following is RIGHTS OF A BANKER?

• Right to send regular statement

• Right to collect money

• Right to be indemnified

• Right to exercise care and skill when dealing with customers

5 types of customer-bank relationship EXCEPT.....

• Contractual relationship

• Trustee-creditor relationship

• Special relationship

• Debtor-creditor relationship

"It is a legal right due to a banker to take into account the sum immediately owing to the bank by customer as credit or when determining the net sum due to customer". This statement is relate to.....

• Standing order

• Set-Off

• Appropriation of payment

• Limitation of Action

The following are Rights of a customer, EXCEPT:

• Right to notify bank of any forgery

• Right to be supplied with statement/passbook

• Right to be repaid the balance standing to the credit of customer's account

• Right for appropriate payments

Bank should not reveal details of customer's account. According to FSA 2013, a maximum penalty for breach of banking secrecy are......

• 3 years imprisonment or 3 millions fine

• 2 years imprisonment or 3 millions fine

• 3 years imprisonment or 2 millions fine

• 2 years imprisonment and 1 million fine