A company requests a 10-year loan to finance working capital requirements. The banker should:
A borrower delays submission of audited accounts for two years. The banker should view this as:
A debenture is commonly used for:
Legal remedies available to banks may include:
I. Foreclosure
II. Legal action
III. Appointment of receiver
IV. Restructuring facility
Islamic banks operate based on:
Sources of credit risk include:
I. Business risk
II. Financial risk
III. Industry risk
IV. Documentation risk
The purpose of collateral is to:
“Character” in the 5Cs refers to:
A company’s current ratio declined from 2.0 to 0.7. This indicates:
Which is considered secondary repayment source?
Which 5C component evaluates owner’s financial commitment?
Which market facilitates long-term fund raising?
A floating charge commonly covers:
Which of the following BEST reflects prudent lending?
A borrower’s account frequently exceeds approved limits. This may indicate:
Components of Malaysian financial system include:
I. Financial Institution
II. Financial Market
III. Capital market and participants
IV. Payment System
During economic recession, banks should generally:
Credit monitoring is conducted to:
Under AMLA, reporting institutions must:
I. Conduct CDD
II. Maintain records
III. Report suspicious transactions
IV. Guarantee customer investments
Which of the following is NOT part of the 5Cs?
Good lending principles include:
I. Safety
II. Liquidity
III. Profitability
IV. Speculation
Early warning signs include:
I. Delayed instalments
II. Returned cheques
III. Declining sales
IV. Stable profitability
A customer refuses to provide identification documents. The bank should:
The Financial Services Act 2013 regulates:
Which document outlines financing terms and conditions?
Account conduct deterioration may include:
I. Returned cheques
II. Excess drawings
III. Delayed instalments
IV. Improved cash balances
What is the purpose of credit risk assessment?
Inventory turnover ratio measures:
Financial statements include:
I. Balance Sheet
II. Income Statement
III. Cash Flow Statement
IV. Loan Agreement
Under CAMPARI, assessment includes:
I. Amount requested
II. Repayment source
III. Insurance/security
IV. Character reference only
Which document creates legal rights over land security?
Profitability ratios include:
I. Gross profit margin
II. Net profit margin
III. Return on equity
IV. Current ratio
Which is an example of industry risk?
Which indicates deteriorating credit quality?
Monetary policy tools may include:
Bank Negara Malaysia is responsible for:
Which is MOST important in credit operations?
Operational controls in credit operations include:
I. Segregation of duties
II. Proper authorization
III. Documentation checks
IV. Internal audit reviews
Characteristics of good security include:
I. Marketability
II. Stable value
III. Easy enforceability
IV. Emotional value
Primary considerations before granting credit include:
I. Repayment capacity
II. Purpose of financing
III. Borrower integrity
IV. Political influence
Which is an early warning signal?
Which document is important during annual review?
A guarantor signs documents without understanding obligations. The bank officer should:
The purpose of legal documentation is to:
A bank should review customer facilities:
Customer Due Diligence (CDD) requires:
Objectives of FSA 2013 include:
I. Financial stability
II. Consumer protection
III. Regulatory oversight
IV. Elimination of all banking risks
The 5Cs consist of:
I. Character
II. Capacity
III. Capital
IV. Collateral
The current ratio measures:
Credit monitoring includes:
I. Monitoring repayment conduct
II. Reviewing financial performance
III. Monitoring covenant compliance
IV. Monitoring industry conditions
The primary source of repayment for business financing should be:
The primary objective of prudent lending is to:
A valid contract requires:
A borrower defaults on instalments for six months. The bank should FIRST:
A borrower has strong collateral but unstable cash flow. The banker should:
Financial institutions must retain records for:
Which institution operates payment systems in Malaysia?
Which CAMPARI component evaluates financing purpose?
Under CAMPARI, “P” refers to:
Which action is MOST appropriate upon detecting early warning signs?
Bankruptcy may affect a borrower’s:
Which factor may increase lending risk?
A disruption in payment systems may affect:
Which institution regulates banks in Malaysia?
Which is an example of banking environment risk?
Gross profit margin indicates:
Which ratio measures leverage?
Commercial banks mainly provide:
Which transaction may be considered suspicious?
The Malaysian financial system consists mainly of:
Common securities include:
I. Landed property
II. Fixed deposits
III. Shares
IV. Guarantees
A fixed charge usually applies to:
Which principle requires matching loan tenure with asset life?
Examples of suspicious activities include:
I. Structuring transactions
II. Sudden unusual transfers
III. Transactions inconsistent with profile
IV. Regular salary crediting
Functions of Bank Negara Malaysia include:
I. Issuing currency
II. Supervising banks
III. Maintaining monetary stability
IV. Approving all personal loans
Functions of financial system include:
I. Mobilisation of savings
II. Allocation of funds
III. Facilitation of payments
IV. Risk management
June 24, 2026
