WorksheetsFIN250-CHAPTER 2
Total questions: 10
Worksheet time: 4mins
What is the principal objective of Bank Negara Malaysia (BNM)?
To regulate international trade
To promote monetary and financial stability conducive to sustainable economic growth
To control all commercial banks’ profits
To manage government taxation policy
When did Bank Negara Malaysia start issuing its own currency?
1 January 1959
31 August 1963
12 June 1967
1 July 1971
Which of the following Acts empowers BNM to regulate and supervise banking institutions?
Companies Act 2016
Central Bank of Malaysia Act 2009
Exchange Control Act 1953
Finance Act 1997
Which of the following is not a quantitative monetary policy tool?
Statutory Reserve Requirement (SRR)
Liquidity Requirement (LR)
Moral Suasion
Money Market Operations (MMO)
The Base Rate is used in Malaysia as:
The minimum deposit rate offered by banks
The interest rate on savings accounts
The main reference rate for retail loans
The discount rate for government bonds
Which of the following correctly describes a tight monetary policy?
BNM buys government securities to increase liquidity
BNM sells government securities to reduce banks’ lending ability
BNM reduces the SRR to promote lending
BNM lowers the base rate to encourage borrowing
Which of the following represents a source of funds for BNM?
Gold and foreign exchange reserves
Demand deposits
Loans and advances to public sectors
Deposits with other financial institutions
Which of the following is a function of BNM in promoting financial stability?
Controlling national taxation policies
Managing the trade balance
Issuing fiscal policies for government revenue
Preserving the soundness of financial institutions
What is the main purpose of BNM’s oversight over payment systems?
To generate profits for the central bank
To ensure safety, reliability, and efficiency of payment systems
To monitor all retail transactions
To prevent the issuance of counterfeit currency
Which of the following best defines financial stability?
A situation where all firms are profitable
A condition where the financial intermediation process functions smoothly with confidence in institutions and markets
When interest rates are fixed for long-term periods
When foreign reserves are at their highest level
