FIN370 Ch 1 INTRODUCTION TO COMMERCIAL BANK

What is the primary function of a commercial bank?

• To provide insurance services

• To accept deposits and make loans

• To issue currency

• To manage government funds

Which act regulates conventional banks in Malaysia?

• Banking Regulation Act 2000

• Anti-Money Laundering Act 2001

• Financial Services Act 2013

• Islamic Financial Services Act 2013

What is a key difference between Islamic and conventional banks?

• Islamic banks do not deal with interest

• Conventional banks operate under Shariah law

• Conventional banks are not regulated

• Islamic banks pay taxes on income

What is the primary source of funds for commercial banks?

• Loans from international banks

• Investments in stocks

• Government grants

• Deposits from customers

Which of the following is NOT a function of commercial banks?

• Accepting deposits

• Facilitating payments

• Providing loans

• Issuing government bonds

What does the term 'credit intermediation' refer to?

• Banks investing in foreign markets

• Banks accepting deposits and providing loans

• Banks providing loans to high-risk borrowers

• Banks acting as agents for the government

What is the role of the Islamic Financial Services Board?

• To regulate conventional banks

• To oversee Islamic banking standards

• To manage government securities

• To provide loans to businesses

Which of the following is a feature of Islamic banking?

• Profit-sharing arrangements

• Investment in gambling

• Interest-based lending

• Guaranteed returns on deposits

What is the purpose of the Anti-Money Laundering Act?

• To regulate interest rates

• To prevent money laundering and terrorism financing

• To manage bank reserves

• To oversee foreign exchange markets

Which of the following is a method used in the layering stage of money laundering?

• Smuggling cash across borders

• Transferring funds between multiple accounts

• Purchasing high-value assets

• Directly depositing cash into a bank