CCP Mock Exam - Paper 1

"Indirect Credit" means

A general relationship between credit and economic growth can be shown using the income version of the Quantity Theory of Money. The theory can be expressed by a formula. Which one of the formula below is correct?

If credit growth is excessive, money supply will be high and with TWO likely results. Indicate the two from below:I.   higher aggregate demand and inflationary pressure if output is not able to meet the higher      aggregate demandII.   lenders become reluctant to lend as there is too much money chasing too few goodsIII.  high inflation demands a higher interest rate; discourages investment and reduces real        income of the populationIV. borrowers will continue to demand for more credit despite the high interest rate charged by      the banks

This rule on banking secrecy is not absolute. There are exceptions whereby disclosers may be permitted. Which are the exceptions:I.   when the information is exchanged casually among bankersII.  when the information has already been made lawfully available to the publicIII. when the information is accidentally given awayIV. disclosure to BNM, or its director, officer or employee or any person appointed by it and       to any persons rendering professional services to BNM but written consent is first obtained      from BNM and disclosure has been consented to in writing by the customer, or his      personal representative

Under BNM/ GP 3, non-performing loans are classified into three categories. Which one of the following is INCORRECT?

Some of the definitions of a non-resident controlled company (NRCC) are illustrated below. Which one of the following is NOT TRUE?

In extending credit facilities to a NRCC, a banking institution is subject to certain conditions. Which of the following conditions below are applicable?I.    Short-term trade financing facilities of any amount in foreign currenciesII.   Less than 50% of short-term trade financing, irrespective of whether in ringgit or foreign      currencyIII.  More than 50% of other types of credit facilitiesIV. Credit facilities in ringgit, other than short-term trade financing, up to an aggregate limit of      RM 50 million