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Topic 8 Islamic Money Market a

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Money market securities have all the following characteristics EXCEPT they are not _______ .

a)

short term

b)

money

c)

low risk

d)

very liquid

2.

The ___________ is a monetary policy tool that use to determine the amount of deposits that banks must hold.

a)

open market operations

b)

reserve requirements

c)

discount ratio

d)

federal funds rate

3.

All the following are the contract normally use in Islamic Interbank Market, EXCEPT:

a)

Mudarabah

b)

Murabahah

c)

Kafalah

d)

Wakalah

4.

Which of the following is FALSE about the Bursa Suq Al-Sila?

a)

Subsidiaries of Bursa Malaysia

b)

Platform for commodity murabahah

c)

Use crude palm oil as the underlying asset

d)

None

5.

Which of the following is NOT the money market instruments?

a)

Commercial Paper

b)

Banker's Acceptance

c)

Repurchase Agreement

d)

Factoring

6.

Negotiable Certificate of Deposit in Money Market Instrument is ___________ .

a)

An agreement which the bank sells its valued papers to investor with an understanding to repurchase them at agreed price on a specified future date.

b)

A document which certifies that a certain sum of Ringgit has been deposited with a financial institution at a specified rate of interest with a specified maturity period.

c)

Bill of exchange which are drown on and accepted by commercial or merchant banks in Malaysia.

d)

Payable to order and entitle the holder the payment of a fixed deposit sum on maturity.

7.

The following are the comparison between Islamic and conventional money market instrument, EXCEPT?

a)

Islamic money market must be approved by the relevant Shariah authority, while for conventional money market approved by the relevant financial regulator.

b)

Islamic money market structured based on assets, equity and debt, while for conventional money market structured based on loan contract only.

c)

Islamic money market and conventional have same on obtaining short-term funding based on Shariah laws and principles.

d)

Islamic money market opens for both Islamic and conventional investors, while for Conventional opens only for conventional investors only.

8.

Islamic money market is a key appendage of the banking system.

a)

TRUE

b)

FALSE

9.

In money market, the instrument with the least risk of default is __________ .

a)

Repurchase Agreement

b)

Commercial Paper

c)

Treasury Bills

d)

Banker's Acceptance

10.

Yield on ______________ are typically higher than government securities. These flexible instruments help issuers to meet their short-term funding needs in that the issuers may roll over the debt by issuing new papers to redeem outstanding ones.

a)

Negotiable Certificate of Deposit

b)

Repurchase Agreement

c)

Commercial Paper

d)

Treasury Bills

11.

The participants in money market are

a)

Household and firms

b)

Firm and government

c)

Banking and non banking instituions