1.
Which of the following is necessary to ensure a sound structured Malaysian Financial System?
A.
Stability in Financial Institutions/Intermediaries & Financial Markets
B.
Non – Financial Institutes & Financial Markets
C.
Stability in Business Intermediaries & Business Markets
D.
Stability in Financial Firms, Forex, Equity & Bond Markets
2.
Which of the following are Investment Banks which are jointly regulated by BNM and SC?
A.
Merchant Bank + Stock Broking company
B.
2 discount houses + stock broking company
C.
Universal broker + discount house
D.
3.
Which of the following entities are regulated by Labuan Financial Services Authority?
I. Onshore Banking, Services, Intermediaries, Insurance and Fund Management
II. Leasing & Factoring, Credit Companies, Money Changers
III. Offshore Banking, Offshore Insurance/Re-Insurance and Offshore Fund Management
IV. Unit Trusts, Venture capital, Equity & Bond Market
4.
The foreign exchange market can be described as follows, except which statement?
I. A market where currencies are traded on spot, with no physical location,
II. Helps to determine the value of various foreign currencies,
III. Can’t be conducted internationally,
IV. Is driven by trading of governments, central Banks and companies.
5.
The Equity Market is also known as:___________________.
6.
The commodities market is defined as: ________________________.
A.
A market where you raise short term and long term funds
B.
A market to borrow assets for short term
C.
Where raw materias or primary products are traded in standardised contracts
D.
Where investors can get liquidity funding easily
7.
The Islamic Banking system in Malaysia follows:________________________.
I. A law that allows interest payment
II. Islamic law (Shariah) principles
III. A law that prohibits usury, riba and haram businesses
IV. A law that allows in investing in unlawful businesses
8.
Which of the following statements are TRUE?
I. OTC market has less liquidity compared to exchange traded market as there are generally less clients and participants
II. Exchange traded products have better price transparency than OTC market products
III. Counterparty risk is lower in OTC compared to exchange trade market
IV. Exchange traded market has lower regulatory oversight as very few firms are registered and member of exchange
9.
Which of the following statement concerning Bank Negara Malaysia (BNM) is FALSE?
A.
B.
Is a statutory body wholly-owned by the government of Malaysia
C.
Reports to the Minister of Foreign Affairs, Malaysia
D.
Keeps the minister informed of the matters pertaining to finance sector policies
10.
BNMs role is to ensure the orderly market conditions in financial markets, and it does so by providing oversight over the __________________.
I. Money Market
II. Commodity futures
III. Forex Market
IV. Principal Dealers
11.
What protection does CMSA provide to its investors?
A.
Enhances SC's power to take civil action, increases standards of trustees for debenture holders and extends investors protection
B.
Protects from anti-money laundering, breaches and risk
C.
Enhances due diligence required for more potential clients
D.
Supervises exchanges, clearing houses and central depositories
12.
Akim, a licensed representative, makes a recommendation on reasonable basis yet the customer raises concerns, he will not be liable and need not pay for the damages under CMSA based on which sections?
13.
According to section 362(3) of CMSA, Lily as a license holders can use appropriate titles to carry on business function such as:____________________________.
A.
Dealing, trading with securities, financial planning and fund management
B.
Helping clients make informed investment decisions by risk profiling
C.
Determining which structured products are suitable for targeted clients
D.
Being a sales personnel who receives instructions to buy and sell structured products
14.
In order for Zul, a personal financial consultant with a Bank to meet the minimum "fit and proper" criteria, he must:_____________________.
A.
B.
Be employed by the Bank for more than 2 years
C.
Not have committed an offence in banking, securities and insurance law
D.
Be engaged in business practices where his competence or judgement is doubtful
15.
Anna, has taken exam under the standards of "fit and proper" to carry out permitted capital market activities. How long is the results from SIDC valid for?
16.
What does Placement in money laundering mean?
A.
Physical disposal of proceeds derived from illegal activities
B.
Separating illicit proceeds from their sources through transactions disguising the audit trail
C.
Integrating laundered proceeds into the economy as normal funds
D.
Integrating laundered proceeds into the economy as not normal funds
17.
Irfan wants to convert his illegal money through money laundering method to normal funds to purchase luxury goods like a car, home etc., what is the scheme he will follow?
A.
Place in bank and integrate it from there to buy his car or home
B.
Place money in stocks and integrate it to buy his car or home
C.
Place illegal money in financial systems, layer by transferring on the bank account of company "X" , wire transfer to a offshore bank, which will loan to Company "Y" where payment by Company "Y" of false invoice to company "X" and integrate this money to buy his car and home
D.
Place in financial systems, layer it to offshore bank with an audit trail and buy his car or home
18.
Under Anti-Money laundering Act, the reporting institution needs to keep records of closed or terminated accounts for:_________________________.
19.
Any institution that fails or refuses to comply with any guidelines issued under the section 66E(5), of Anit-Money Laundering Act and commits an offense shall be liable to a fine:_________________________.
A.
B.
C.
Not exceeding RM100,000 with imprisonment
D.
20.
The Customer Due Diligence (CDD) by RI should minimally include:_________________.
I. Identify, verify beneficial ownership and control of such transactions
II. Identify customer but no need verify the customer information
III. Conduct on-going CDD and scrutiny to ensure info is updated and relevant
IV. Need not obtain any additional infornation on purpose and intended nature of customer's business transaction
21.
Which interaction is most appropriate to avoid abuse by money launderers and financers of terrorism, from establishing a healthy business relationship in the economic system?
22.
The following transactions trigger suspicion except?
A.
Lots of small transactions, done over a long period of time
B.
Substanial increase in cash deposits in account without apparent cause
C.
Customers who deposit cash by means of numerous credit slips
D.
Customers whose deposits contain counterfiet notes or forged instruments
23.
What is Know -Your-Client (or KYC)?
A.
It is a form that ensures financial advisors know information about their clients' account details
B.
It is a form that ensures financial advisors know information about their clients' transaction details
C.
It is a standard form in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge and financial position
D.
It is a standard form in the investment industry that ensures consultants has business relationship with their clients' position
24.
What is the purpose and objective of KYC?
I. to continuously have an understanding of clients financial needs, requirements and objectives
II. Is a necessary part to determining risk profile and product suitability
II. Aimed towards helping clients make informed investment decisions to optimise returns for their portfolio
IV. All of the above
25.
When is it not required to conduct KYC and due diligence?
A.
When client type is "for execution only"
B.
If client is undecided to be interviewed to establish risk profile
C.
When sales personnel has influence in the buying decision of the customer
D.
When sales personnel is a senior person in the bank
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