Pb303 Chapter 2 Bnm

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| By Amienmamat
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Amienmamat
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Bank Quizzes & Trivia

Quiz 2


Questions and Answers
  • 1. 

    Tan Sri Dato' Sri Dr. Zeti Akhtar Aziz is the Governors of BNM since January 2000 

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Tan Sri Dato' Sri Dr. Zeti Akhtar Aziz is the Governors of BNM since May 2000

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  • 2. 

    One of the BNM's Objective are :  to Issue currency and keep reserves safeguarding the value of the currency

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The explanation for the given correct answer is that one of the objectives of BNM (Bank Negara Malaysia) is to issue currency and keep reserves safeguarding the value of the currency. This means that BNM is responsible for ensuring that the currency remains stable and maintains its value. By issuing currency and keeping reserves, BNM can regulate the supply of money in the economy and prevent inflation or deflation. This objective is important for maintaining economic stability and confidence in the currency.

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  • 3. 

    One of the BNM's Objective are :   Act as a banker and financial adviser to the government. 

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The Bank Negara Malaysia (BNM) has the objective of acting as a banker and financial adviser to the government. This means that BNM provides banking services to the government, such as managing its accounts and facilitating transactions. Additionally, BNM also offers financial advice to the government, helping them make informed decisions regarding economic and financial matters. Therefore, the statement "True" is correct.

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  • 4. 

    One of the BNM's Objective are :   Promote financial stability and a sound financial structure 

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Promote monetary stability and a sound financial structure

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  • 5. 

    One of the BNM's Objective are :  Influence the credit situation to the disadvantage of Malaysia   

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Influence the credit situation to the disadvantage of Malaysia

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  • 6. 

    BNM was established on _________________________

    • A.

      26 January 1959

    • B.

      26 January 1995

    • C.

      26 January 1956

    • D.

      26 January 1955

    Correct Answer
    A. 26 January 1959
    Explanation
    BNM refers to Bank Negara Malaysia, which is the central bank of Malaysia. The establishment date of BNM is 26 January 1959. This means that on this date, BNM was officially formed and began its operations as the central bank of Malaysia.

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  • 7. 

    This department conducts monetary operations to influence liquidity requirement in order to achieve Bank Negara financial goal. The statement refers to ___________________________

    • A.

      Accounts Department

    • B.

      Economic department

    • C.

      Treasury and Investment department

    • D.

      Bank supervision Department

    Correct Answer
    C. Treasury and Investment department
    Explanation
    The given statement refers to the Treasury and Investment department. This department is responsible for conducting monetary operations to influence liquidity requirements and achieve Bank Negara's financial goals. They manage the treasury and investment activities of the bank, which includes managing the bank's reserves, investing in various financial instruments, and ensuring the bank has enough liquidity to meet its obligations.

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  • 8. 

    The full form of SRR is _____________

    • A.

      Statutory Reserve Requirement

    • B.

      Statutory Reverse Requirement

    • C.

      Statutory Reserve Replacement

    • D.

      Statutory Reverse Replacement

    Correct Answer
    A. Statutory Reserve Requirement
    Explanation
    The correct answer is "Statutory Reserve Requirement." SRR refers to the Statutory Reserve Requirement, which is the amount of cash that banks are required to hold as reserves against their deposits. This requirement is set by the central bank of a country and helps to ensure the stability of the banking system and control inflation.

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  • 9. 

    Bank Negara Malaysia (BNM) has a relationship internationally with World Trade Organizations 

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Bank Negara Malaysia (BNM) has a relationship internationally with World Trade Organizations. This means that BNM has established connections and collaborations with the World Trade Organization (WTO). The relationship could involve various aspects such as information sharing, policy coordination, and cooperation in promoting international trade. This connection with the WTO indicates that BNM is actively involved in global trade matters and works towards facilitating and supporting international trade activities.

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  • 10. 

    Bank Negara Malaysia (BNM) has a relationship internationally with International Monetary Bank 

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    International Monetary Fund

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  • 11. 

    Bank Negara Malaysia (BNM) has a relationship internationally with  Islamic Development Bank 

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Bank Negara Malaysia (BNM) indeed has a relationship internationally with the Islamic Development Bank. This relationship is likely based on the fact that both institutions operate within the Islamic finance framework. The Islamic Development Bank is an international financial institution that promotes economic development and social progress in member countries through Islamic finance. As BNM is the central bank of Malaysia, which has a significant Islamic finance industry, it is plausible that they have established a relationship with the Islamic Development Bank to collaborate and support the development of Islamic finance globally.

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  • 12. 

    The Central Bank can direct Deposit Money Banks on the maximum percentage or amount of loans (credit ceilings) to different economic sectors or activities, interest rate caps, liquid asset ratio and issue credit guarantee to preferred loans.  The above statement refers to __________________ 

    • A.

      Debit Control

    • B.

      Credit COntrol

    • C.

      Moral Persuasion

    • D.

      Discount Operations

    Correct Answer
    B. Credit COntrol
    Explanation
    The correct answer is Credit Control. The statement describes the authority of the Central Bank to set limits on the percentage or amount of loans, interest rates, and liquid asset ratios for different sectors or activities in order to control credit in the economy. This is a form of credit control, as the Central Bank is regulating the availability and terms of credit in the banking system.

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  • 13. 

    This department responsible in monitoring and early detection of emerging the banking institution. 

    • A.

      Banking Supervision department

    • B.

      Payment System Department

    • C.

      Control of Banking Department

    • D.

      Bank Examination Department

    Correct Answer
    A. Banking Supervision department
    Explanation
    The correct answer is the Banking Supervision department. This department is responsible for monitoring and early detection of emerging issues in the banking institution. They oversee and regulate banks to ensure that they are operating in compliance with the necessary regulations and guidelines. By closely monitoring the activities of banks, they can identify any potential risks or vulnerabilities in the banking system and take appropriate actions to mitigate them.

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  • 14. 

    This department also control on development of Labuan IOFC. Offshore banking department established in 1990 to administer Offshore Banking Act 1990

    • A.

      Banking Supervision department

    • B.

      Payment System Department

    • C.

      Control of Banking Department

    • D.

      Bank Examination Department

    Correct Answer
    C. Control of Banking Department
    Explanation
    The Control of Banking Department is the correct answer because it is responsible for overseeing and regulating the banking industry, including offshore banking. It was established in 1990 to administer the Offshore Banking Act 1990, indicating its role in controlling and monitoring the activities of banks in Labuan IOFC. The other departments mentioned, such as Banking Supervision, Payment System, and Bank Examination, may have different roles and responsibilities within the banking system, but they do not specifically mention the control of offshore banking.

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  • 15. 

    This department also supervises on operation of institutional information system and identifies the risk faces by the financial institutional due to global changes in technology.

    • A.

      Banking Supervision department

    • B.

      Payment System Department

    • C.

      Control of Banking Department

    • D.

      Bank Examination Department

    Correct Answer
    A. Banking Supervision department
    Explanation
    The correct answer is Banking Supervision department. This department is responsible for supervising the operations of the institutional information system and identifying the risks faced by financial institutions due to global changes in technology. They ensure that banks are complying with regulations and implementing appropriate risk management practices to protect the stability of the financial system.

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  • 16. 

    This department responsible to ensure the financial stability, facilitating BNM in the conduct of its monetary policy by allowing greater use of market-based instruments to achieve its objectives, while enhancing the efficiency of the financial system and the economy as a whole.

    • A.

      Banking Supervision department

    • B.

      Payment System Department

    • C.

      Control of Banking Department

    • D.

      Bank Examination Department

    Correct Answer
    B. Payment System Department
    Explanation
    The given correct answer is Payment System Department. This department is responsible for ensuring the financial stability and efficiency of the financial system and the economy as a whole. They facilitate the central bank in conducting its monetary policy by allowing greater use of market-based instruments. This department focuses on the supervision and regulation of payment systems, which play a crucial role in the smooth functioning of the financial system.

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  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 18, 2013
    Quiz Created by
    Amienmamat
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