fin435 tutorial 1

What does Bank Negara Malaysia primarily aim to achieve through its monetary policy?

• Maximizing employment opportunities

• Promoting economic growth at all costs

• Maintaining price stability and ensuring financial stability

• Providing easy access to credit for all citizens

Which of the following is a primary function of financial intermediaries in the Malaysian financial system?

• Issuing currency notes and coins

• Facilitating government spending

• Mobilizing savings and channeling them into productive investments

• Regulating the stock market

What is the primary purpose of reserves held by Bank Negara Malaysia?

• To fund government expenditure

• To maintain liquidity in the financial system

• To finance international trade deficits

• To invest in foreign assets for higher returns

Which component is NOT typically included in the structure of the Malaysian financial system?

• Commercial banks

• Investment banks

• Takaful operators

• Agricultural cooperatives

What is one of the key benefits of financial intermediation?

• Decreasing liquidity in the financial system

• Reducing the need for monetary policy

• Lowering transaction costs and information asymmetry

• Limiting access to credit for certain individuals and businesses

Which of the following monetary instruments is NOT typically used by Bank Negara Malaysia to manage the Malaysian financial system?

• Open market operations

• Fiscal policy adjustments

• Reserve requirements.

• Setting the overnight policy rate (OPR)

Which of the following is a primary function of commercial banks?

• Underwriting securities

• Managing pension funds

• Providing advisory services for mergers and acquisitions

• Accepting deposits and making loans

What is a common source of funds for investment banks?

• Retail deposits

• Mortgage lending

• Equity and debt underwriting

• Fixed deposits

Islamic banking aims to operate in accordance with:

• Secular laws and regulations only

• Islamic principles and Shariah law

• Buddhist principles

• Hindu traditions

What sets Islamic banking apart from conventional banking?

• It allows for the charging of interest on loans

• It prohibits lending money for interest income

• It does not engage in investment activities

• It is not subject to regulatory oversight