Question

20.After the completion of a project, its revenue is not as expected due to the existence of a new substitute product that causes the demand for the services is low. This causes the project unable to generate sufficient income to repay the loan. This refers to(1 Point)

Resource risk

Operational risk

Market risk

Completion risk

21.What is financial repression?(1 Point)

Financial depress of banks during financial crises

Financial injection by the government to help banks from becoming insolvent

High level of government control on financial activities

Financial products offered by an international bank to its customers in purchasing raw materials

22.Which type of bank has the biggest geographical presence in Japanese banking system?(1 Point)

City banks

Regional banks

Trust banks

Cooperative banks

23.Ensuring banks adhere to the regulation. This refers to(1 Point)

Regulation

Supervision

Laws

Guidelines

24.This institution's main objective is to reduce the income gap among people in a country. What is the name of this institution?(1 Point)

United Nation

World Bank

International Monetary Fund

Bank Negara Malaysia

25.Supposed you are assigned to start a banking business of your bank in Laos. Which is the best organizational structure that you can use to enter Laos banking market based on Laos riskiness?(1 Point)

Subsidiary

Branch

Agency

Representative office

26.This document is used to make sure the exported product can be legally shipped to the importer's country.(1 Point)

Bill of lading

Packing list

Consular invoice

Insurance document

27.Why there is no separate rate for Selling TT and Selling OD in a bank's quote? Instead, they are quoted as Selling TT/OD.(1 Point)

Both give bank higher profits if they are quoted together compared to quoted separately

Both requires bank to incur loss to exchange the received currency

Both give bank Malaysian Ringgit that can be used immediately

Both are done in the same time and place

28.What is the main reason for BIS to introduce a standard practice in banking supervision among all countries in the world?(1 Point)

To increase banking system stability

To ease central banks' job in formulating rules and guidelines

To ensure no foreign banks can avoid regulation

To ensure banks can survive during a crisis time

29.An OFC is a jurisdiction that charges high tax to the users of financial services in that jurisdiction(1 Point)

True

False

30.Eurocurrency is(1 Point)

The currency used by the countries in European Union (EU) such as Germany and France

Currency held in the outside of its origin country

Currency used to trade with any company that is from European continental

Currency used in an European offshore financial centre like Switzerland and Luxembourg

Answer 1

20. Option,Completion risk

21. Option, Financial depress of banks during financial crises

22. Option, Trust banks

23. Option, regulation

24. Option, World Bank

25. Option, Representative office

26. Option, Bill of lading

27. Option, Both give bank higher profits if they are quoted together compared to quoted separately

28. Option, To increase banking system stability

29. Option, False

30. Option, The currency used by the countries in European Union (EU) such as Germany and France