The primary objective of prudent lending is to:
Which principle requires matching loan tenure with asset life?
The primary source of repayment for business financing should be:
Which of the following BEST reflects prudent lending?
Which factor may increase lending risk?
Good lending principles include:
I. Safety
II. Liquidity
III. Profitability
IV. Speculation
A company requests a 10-year loan to finance working capital requirements. The banker should:
Primary considerations before granting credit include:
I. Repayment capacity
II. Purpose of financing
III. Borrower integrity
IV. Political influence
Which of the following is NOT part of the 5Cs?
“Character” in the 5Cs refers to:
Under CAMPARI, “P” refers to:
Which CAMPARI component evaluates financing purpose?
The 5Cs consist of:
I. Character
II. Capacity
III. Capital
IV. Collateral
A borrower has strong collateral but unstable cash flow. The banker should:
Under CAMPARI, assessment includes:
I. Amount requested
II. Repayment source
III. Insurance/security
IV. Character reference only
Which 5C component evaluates owner’s financial commitment?
Which is an example of industry risk?
What is the purpose of credit risk assessment?
Which indicates deteriorating credit quality?
Sources of credit risk include:
I. Business risk
II. Financial risk
III. Industry risk
IV. Documentation risk
A borrower’s account frequently exceeds approved limits. This may indicate:
Early warning signs include:
I. Delayed instalments
II. Returned cheques
III. Declining sales
IV. Stable profitability
Which is considered secondary repayment source?
The current ratio measures:
Which ratio measures leverage?
Gross profit margin indicates:
Financial statements include:
I. Balance Sheet
II. Income Statement
III. Cash Flow Statement
IV. Loan Agreement
A company’s current ratio declined from 2.0 to 0.7. This indicates:
Profitability ratios include:
I. Gross profit margin
II. Net profit margin
III. Return on equity
IV. Current ratio
Inventory turnover ratio measures:
Credit monitoring is conducted to:
Which is an early warning signal?
A bank should review customer facilities:
Which document is important during annual review?
Credit monitoring includes:
I. Monitoring repayment conduct
II. Reviewing financial performance
III. Monitoring covenant compliance
IV. Monitoring industry conditions
A borrower delays submission of audited accounts for two years. The banker should view this as:
Account conduct deterioration may include:
I. Returned cheques
II. Excess drawings
III. Delayed instalments
IV. Improved cash balances
Which action is MOST appropriate upon detecting early warning signs?
The purpose of collateral is to:
A debenture is commonly used for:
A fixed charge usually applies to:
Which document outlines financing terms and conditions?
Characteristics of good security include:
I. Marketability
II. Stable value
III. Easy enforceability
IV. Emotional value
A guarantor signs documents without understanding obligations. The bank officer should:
Common securities include:
I. Landed property
II. Fixed deposits
III. Shares
IV. Guarantees
A floating charge commonly covers:
Customer Due Diligence (CDD) requires:
Which transaction may be considered suspicious?
Financial institutions must retain records for:
Under AMLA, reporting institutions must:
I. Conduct CDD
II. Maintain records
III. Report suspicious transactions
IV. Guarantee customer investments
A customer refuses to provide identification documents. The bank should:
Examples of suspicious activities include:
I. Structuring transactions
II. Sudden unusual transfers
III. Transactions inconsistent with profile
IV. Regular salary crediting
The Financial Services Act 2013 regulates:
Which institution regulates banks in Malaysia?
Bank Negara Malaysia is responsible for:
Which is an example of banking environment risk?
Functions of Bank Negara Malaysia include:
I. Issuing currency
II. Supervising banks
III. Maintaining monetary stability
IV. Approving all personal loans
During economic recession, banks should generally:
Objectives of FSA 2013 include:
I. Financial stability
II. Consumer protection
III. Regulatory oversight
IV. Elimination of all banking risks
Monetary policy tools may include:
The Malaysian financial system consists mainly of:
Which institution operates payment systems in Malaysia?
Commercial banks mainly provide:
Islamic banks operate based on:
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:
Functions of financial system include:
I. Mobilisation of savings
II. Allocation of funds
III. Facilitation of payments
IV. Risk management
Which market facilitates long-term fund raising?
A valid contract requires:
Bankruptcy may affect a borrower’s:
Which document creates legal rights over land security?
The purpose of legal documentation is to:
Legal remedies available to banks may include:
I. Foreclosure
II. Legal action
III. Appointment of receiver
IV. Restructuring facility
A borrower defaults on instalments for six months. The bank should FIRST:
Operational controls in credit operations include:
I. Segregation of duties
II. Proper authorization
III. Documentation checks
IV. Internal audit reviews
Which is MOST important in credit operations?
August 19, 2026
