The 5Cs consist of:
I. Character
II. Capacity
III. Capital
IV. Collateral
Which of the following is NOT part of the 5Cs?
Characteristics of good security include:
I. Marketability
II. Stable value
III. Easy enforceability
IV. Emotional value
Which is considered secondary repayment source?
The primary source of repayment for business financing should be:
Profitability ratios include:
I. Gross profit margin
II. Net profit margin
III. Return on equity
IV. Current ratio
Components of Malaysian financial system include:
I. Financial Institution
II. Financial Market
III. Capital market and participants
IV. Payment System
A disruption in payment systems may affect:
A company requests a 10-year loan to finance working capital requirements. The banker should:
Bank Negara Malaysia is responsible for:
Which 5C component evaluates owner’s financial commitment?
Inventory turnover ratio measures:
Financial statements include:
I. Balance Sheet
II. Income Statement
III. Cash Flow Statement
IV. Loan Agreement
A valid contract requires:
Which transaction may be considered suspicious?
Primary considerations before granting credit include:
I. Repayment capacity
II. Purpose of financing
III. Borrower integrity
IV. Political influence
Which indicates deteriorating credit quality?
Early warning signs include:
I. Delayed instalments
II. Returned cheques
III. Declining sales
IV. Stable profitability
The primary objective of prudent lending is to:
A fixed charge usually applies to:
What is the purpose of credit risk assessment?
A borrower delays submission of audited accounts for two years. The banker should view this as:
Islamic banks operate based on:
Which document outlines financing terms and conditions?
Legal remedies available to banks may include:
I. Foreclosure
II. Legal action
III. Appointment of receiver
IV. Restructuring facility
The current ratio measures:
Which document creates legal rights over land security?
Which document is important during annual review?
The purpose of legal documentation is to:
A guarantor signs documents without understanding obligations. The bank officer should:
Account conduct deterioration may include:
I. Returned cheques
II. Excess drawings
III. Delayed instalments
IV. Improved cash balances
Good lending principles include:
I. Safety
II. Liquidity
III. Profitability
IV. Speculation
A borrower’s account frequently exceeds approved limits. This may indicate:
Which is an example of industry risk?
Operational controls in credit operations include:
I. Segregation of duties
II. Proper authorization
III. Documentation checks
IV. Internal audit reviews
Gross profit margin indicates:
Under CAMPARI, assessment includes:
I. Amount requested
II. Repayment source
III. Insurance/security
IV. Character reference only
Bankruptcy may affect a borrower’s:
A debenture is commonly used for:
Which action is MOST appropriate upon detecting early warning signs?
A borrower defaults on instalments for six months. The bank should FIRST:
The Financial Services Act 2013 regulates:
Functions of Bank Negara Malaysia include:
I. Issuing currency
II. Supervising banks
III. Maintaining monetary stability
IV. Approving all personal loans
Which market facilitates long-term fund raising?
A customer refuses to provide identification documents. The bank should:
Which principle requires matching loan tenure with asset life?
Objectives of FSA 2013 include:
I. Financial stability
II. Consumer protection
III. Regulatory oversight
IV. Elimination of all banking risks
Which is MOST important in credit operations?
Which factor may increase lending risk?
Which is an early warning signal?
Monetary policy tools may include:
Which institution regulates banks in Malaysia?
A company’s current ratio declined from 2.0 to 0.7. This indicates:
Credit monitoring includes:
I. Monitoring repayment conduct
II. Reviewing financial performance
III. Monitoring covenant compliance
IV. Monitoring industry conditions
A bank should review customer facilities:
Credit monitoring is conducted to:
Common securities include:
I. Landed property
II. Fixed deposits
III. Shares
IV. Guarantees
Under CAMPARI, “P” refers to:
Under AMLA, reporting institutions must:
I. Conduct CDD
II. Maintain records
III. Report suspicious transactions
IV. Guarantee customer investments
A floating charge commonly covers:
A borrower has strong collateral but unstable cash flow. The banker should:
Which is an example of banking environment risk?
During economic recession, banks should generally:
Commercial banks mainly provide:
Customer Due Diligence (CDD) requires:
“Character” in the 5Cs refers to:
Sources of credit risk include:
I. Business risk
II. Financial risk
III. Industry risk
IV. Documentation risk
Functions of financial system include:
I. Mobilisation of savings
II. Allocation of funds
III. Facilitation of payments
IV. Risk management
Examples of suspicious activities include:
I. Structuring transactions
II. Sudden unusual transfers
III. Transactions inconsistent with profile
IV. Regular salary crediting
Which of the following BEST reflects prudent lending?
Financial institutions must retain records for:
Which institution operates payment systems in Malaysia?
The Malaysian financial system consists mainly of:
Which ratio measures leverage?
Which CAMPARI component evaluates financing purpose?
The purpose of collateral is to:
June 29, 2026
