WorksheetsFIN370 Ch3 Operations of Customer Accounts
Total questions: 28
Worksheet time: 14mins
What is a savings account primarily used for?
To provide loans
To invest in stocks
To facilitate business transactions
To keep money safe while earning interest
What is the minimum age requirement to open a savings account in Malaysia?
21 years
18 years
16 years
25 years
What is the maximum amount insured by PIDM for savings accounts in Malaysia?
RM500,000
RM250,000
RM1,000,000
RM100,000
Which document is required to prove identity when opening a personal savings account?
Passport
Birth certificate
Identification card
Utility bill
What is a key feature of a current account?
Higher interest rates than savings accounts
Requires a minimum balance of RM1000
Allows cheque issuance
No withdrawal limits
What is the minimum initial deposit typically required for a current account?
RM500
RM100
RM1000
RM2000
What is a fixed deposit account?
An account for daily transactions
An account with no withdrawal limits
An account for short-term savings
An account where money is deposited for a fixed term
What is the minimum deposit for a one-month fixed deposit?
RM1000
RM5000
RM500
RM10,000
What is a Negotiable Instrument of Deposit (NID)?
A type of savings account
A transferable deposit for a specific period
A loan agreement
A type of investment account
What is required to open a joint account?
Only a birth certificate
Only one signature
Mandate and method of signing
No documentation needed
What is the role of a trustee in a trust account?
To manage the trust for beneficiaries
To own the trust assets personally
To act as a beneficiary
To open the account without restrictions
What must be submitted to open a trust account?
Only the trustee's ID
Trust Deed and ID of the trustee
A birth certificate
A letter from the bank
What is a partnership account?
An account for individual use
An account for two or more individuals
An account for minors
An account for businesses only
What document is needed to open a company account?
A utility bill
Personal identification of directors
A letter from the bank
A birth certificate
What is the purpose of an executor and administrator account?
To open a business account
To manage personal finances
To save for retirement
To handle estate management after death
What is required for a club and societies account?
Only a club registration number
Personal identification of all members
Constitution and minutes of the meeting
No documentation needed
What is the primary function of a current account?
To invest in real estate
To earn high interest
To manage daily transactions
To save for long-term goals
What happens if a fixed deposit is uplifted before maturity?
Interest is paid in full
A penalty fee is charged
No interest is paid
The principal is lost
What is the maximum number of owners allowed in a partnership in Malaysia?
50
20
10
5
What is the purpose of PIDM?
To regulate bank interest rates
To insure deposits in banks
To manage bank investments
To provide loans to banks
What is a key requirement for opening a minor account?
A minimum deposit of RM1000
A birth certificate
No requirements
Approval from a guardian
What is the primary benefit of a savings account?
Low interest rates
Safety of funds with interest
High transaction fees
No withdrawal limits
What is the role of the bank when opening a business account?
To provide loans
To verify business registration
To manage personal accounts
To offer investment advice
What is a key feature of a trust account?
It can be opened by anyone
It requires no documentation
It is managed by a trustee for beneficiaries
It has no restrictions
What is the purpose of a current account?
To earn high interest
To facilitate daily transactions
To invest in stocks
To save money for the future
What is required for a company to open a bank account?
A resolution from the board of directors
No requirements
Only a company name
A personal identification of the owner
What is the primary purpose of a fixed deposit?
To facilitate daily transactions
To secure a fixed interest rate over time
To save for emergencies
To earn variable interest
What is the significance of the trust deed?
It is not required for trust accounts
It defines the powers of the trustee
It is a personal document
It is only for personal accounts
