BD EXERCISE 1

In relation to a bill of exchange, which of the following statements is INCORRECT?

• A bill must be duly presented for payment or else the drawer and endorsers shall be discharged.

• A bill is negotiated when it is transferred from one person to another to constitute the transferee the holder of the bill.

• The drawee is the person to whom the bill is addressed to.

• Negotiation is the signification by the drawee of his assent to the order of the drawer.

The following is absolutely essential for a special crossing, namely:

• two parallel transverse lines.

• name of a banker.

• words "And Company”.

• words "Not Negotiable".

Which of the following is NOT the essential features of a cheque?

• It must be in writing.

• It must be signed by the drawer.

• It must have date of issue.

• The amount must be a certain amount.

A cheque may be payable on a determinable future time.

• True

• False

Order bills are negotiated by delivery.

• True

• False

The commercial banks in Malaysia are given licence of operation by the:

• Government of Malaysia.

• Minister of Finance.

• Central Bank of Malaysia.

• Securities Commission of Malaysia.

The following are the functions of the Central Bank of Malaysia, EXCEPT:

• clearing and collection of cheques.

• management of the national debt.

• issuing coin and currency.

• lender of last resort.

The following statutes provide the regulatory and supervisory powers to the Central Bank of Malaysia over banking and financial institutions in Malaysia, EXCEPT:

• Central Bank of Malaysia Act 2009.

• Financial Services Act 2013.

• Money Services Business Act 2011.

• Bills of Exchange Act 1949.

The Islamic banks in Malaysia are governed by the:

• Islamic Banking Act 1981.

• Islamic Financial Services Act 2013.

• Capital Market and Services Act 2007.

• Companies Act 2016.

The principles of Islamic banking are the prohibition of predetermined loan repayments as interest (riba) and speculative behaviour (gharar).

• True

• False