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FIN360_QUIZ 1

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

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

a)

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

b)

Paying cheques drawn and paid by customers.

c)

Providing loan and advances to customers.

d)

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

2.

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

a)

FSA 2013

b)

Islamic Banking Act 1983

c)

Insurance Act 1996

d)

BAFIA 1987

3.

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.

a)

Private limited, grant

b)

Private limited, license

c)

Public listed, lisence

d)

Public listed, certificate

4.

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

a)

Woods vs Martin (1959)

b)

Great Western Railway vs London & Country Banking (1901)

c)

Hedley Byrne vs Heller (1963)

d)

Oriental Bank vs Rubber Industry (1957)

5.

Which of the following is the DUTY of a banker?

a)

Duty to charge reasonable interest

b)

Duty to expect customer to take due care when issuing cheques

c)

Duty to use money in appropriate ways

d)

Secrecy of customer accounts

6.

Which of the following is RIGHTS OF A BANKER?

a)

Right to send regular statement

b)

Right to collect money

c)

Right to be indemnified

d)

Right to exercise care and skill when dealing with customers

7.

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

a)

Contractual relationship

b)

Trustee-creditor relationship

c)

Special relationship

d)

Debtor-creditor relationship

8.

"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.....

a)

Standing order

b)

Set-Off

c)

Appropriation of payment

d)

Limitation of Action

9.

The following are Rights of a customer, EXCEPT:

a)

Right to notify bank of any forgery

b)

Right to be supplied with statement/passbook

c)

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

d)

Right for appropriate payments

10.

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

a)

3 years imprisonment or 3 millions fine

b)

2 years imprisonment or 3 millions fine

c)

3 years imprisonment or 2 millions fine

d)

2 years imprisonment and 1 million fine

11.

Consideration (s) of bank when giving banker opinion are, EXCEPT:

a)

The reply must be general and specific

b)

Any debentures must always be mentioned

c)

Records of all enquiries received should be maintained.

d)

Bank is no duty to obtain information from outside source

12.

Bank must close the customer's account, EXCEPT:

a)

Transferable instrument with endorsement

b)

Transferable debt instrument

c)

Non-transferable debt instrument

d)

A debt instrument is close for modification

13.

Which are NOT three (3) types of endorsement?

a)

Blank endorsement

b)

Bearer endorsement

c)

Special endorsement

d)

Restrictive endorsement

14.

A bill is dishonoured by non-payment when:

a)

The bill is complete and free from alteration

b)

The payment is excused and the bill is overdue and unpaid

c)

The bill is presented before the due

d)

The payment is obtainable

15.

A holder for value is the holder of a bill for which value was given sometime previously. So he is a person who purchased the bill from payee or endorsee.

a)

TRUE

b)

FALSE

16.

A bill of exchange must be presented for payment and if it is not presented, the drawer and endorsers are charge from liability.

a)

TRUE

b)

FALSE

17.

A cheque is a written order instructing a bank to pay someone on demand that is pay them when the cheque is paid in or a request for cash is made.

a)

TRUE

b)

FALSE

18.

The following are advantages of cheque, EXCEPT:

a)

Can be stop if loss

b)

More secured than cash

c)

Easily send through post and e-mail

d)

Easily transferred between parties

19.

What is negotiable instrument?

a)

A debt instrument is close for modification

b)

Transferable debt instrument

c)

Non-transferable debt instrument

d)

Transferable instrument with endorsement

20.

The effect of general crossing is to make the cheque payable only to a banker.

a)

TRUE

b)

FALSE

21.

A cheque that have a date before date of issue is ante-dated cheque.

a)

TRUE

b)

FALSE

22.

Customer can countermand payment if........

a)

Change of mind

b)

Success of contract

c)

Event of loss, stolen and failed contract

23.

The bank will not responsible if the countermand instruction reaches the bank after the payment have been made eventhough the delay was caused by the bank negligence.

a)

TRUE

b)

FALSE

24.

Section 60 BEA 1949 states that the bank can pay on the cheques through the presenter unknown to the bank as long as the bank takes all the necessary steps in examining the cheque and identify the presenter.

a)

FALSE

b)

TRUE

25.

Section 95 BOE Act 1949 provides that a thing is deemed to be done in Good Faith where it is in fact done honestly whether it is done negligently or not.

a)

TRUE

b)

FALSE