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    Pyq Fin250

    Uploaded by

    shfirdaus044
    The document provides sample questions and answers from past Bank Negara Malaysia (BNM) exam papers for the subjects of FIN250 Monetary Economics and FIN263 Islamic Banking and Finance. For FIN250, sample questions cover statutory reserve requirement, BNM's key functions, and sources and uses of funds. For FIN263, sample questions cover monetary policy tools like statutory reserve requirement and their effects, money laundering processes, and components of bank balance sheets. The document serves as a study guide for these exams by providing prior exam questions and answers.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Pyq Fin250

    Uploaded by

    shfirdaus044
    169 views3 pages
    The document provides sample questions and answers from past Bank Negara Malaysia (BNM) exam papers for the subjects of FIN250 Monetary Economics and FIN263 Islamic Banking and Finance. For FIN250, sample questions cover statutory reserve requirement, BNM's key functions, and sources and uses of funds. For FIN263, sample questions cover monetary policy tools like statutory reserve requirement and their effects, money laundering processes, and components of bank balance sheets. The document serves as a study guide for these exams by providing prior exam questions and answers.

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    PYQ FIN250

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    The document provides sample questions and answers from past Bank Negara Malaysia (BNM) exam papers for the subjects of FIN250 Monetary Economics and FIN263 Islamic Banking and Finance. For FIN250, sample questions cover statutory reserve requirement, BNM's key functions, and sources and uses of funds. For FIN263, sample questions cover monetary policy tools like statutory reserve requirement and their effects, money laundering processes, and components of bank balance sheets. The document serves as a study guide for these exams by providing prior exam questions and answers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    169 views3 pages

    Pyq Fin250

    Uploaded by

    shfirdaus044
    The document provides sample questions and answers from past Bank Negara Malaysia (BNM) exam papers for the subjects of FIN250 Monetary Economics and FIN263 Islamic Banking and Finance. For FIN250, sample questions cover statutory reserve requirement, BNM's key functions, and sources and uses of funds. For FIN263, sample questions cover monetary policy tools like statutory reserve requirement and their effects, money laundering processes, and components of bank balance sheets. The document serves as a study guide for these exams by providing prior exam questions and answers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    PYQ JULY 2023 FIN250

    Question 1

    (a) Statutory Reserve Requirement (SRR) : If the financial system is seen to have excess liquidity
    (fund), BNM will increase the SRR rate for the banking system to keep more money (EL) with
    BNM in order to reduce lending activity to control inflation.
    Base Rate : BNM will increase the base rate, commercial banks will increase their interest
    rates and borrowing becomes more expensive and vice versa.

    (b) To promote and conduct monetary policy in Malaysia : BNM conduct monetary policy
    operations to promote the monetary stability.
    To keep and manage the foreign reserve of Malaysia : BNM shall hold and manage the
    foreign reserves in accordance with the policies and guidelines established.
    To promote an exchange rate regime consistent with the fundamentals of the economy : The
    exchange rate regime for the ringgit shall be determined by the Ministry of Finance on the
    recommendation of the BNM.

    (c) Sources : Capital and Profit


    Uses : Loan and advances commercial banks, Securities

    PYQ FEB 2023 FIN250

    Question 1

    (a) To promote monetary stability and financial stability conducive to the sustainable growth of
    the Malaysian economy.
    To carries out its principal functions. These include issuing currency, and holding and
    managing the country’s foreign reserves. The Bank is also the financial adviser, banker and
    financial agent of the Government.
    To have all the power necessary, incidential or ancillary to give effect to its objects and carry
    out its functions.
    To give effect to its objects and carry out its functions under this Act shall have regard to the
    national interest.

    (b) Manage Government Accounts : BNM keep account of Government moneys that is received
    and disbursed. Undertake the issue and management of securities, Treasury bills issued by
    the government.
    Temporary financing to Government : BNM provides temporary financing to the Government
    to cover temporary deficiencies of budget revenue. All financing shall be payable not more
    than 3 months after the end of the financial year.

    (c) -Central Bank of Malaysia Act (2009)


    -Currency Act 2020
    -Financial Services Act (2013)
    -Islamic Financial Services Act (2013)
    PYQ FEB 2023 FIN263

    Part A – Question 1

    (a) Statutory Reserve Requirement (SRR) : SRR is a monetary policy instrument for liquidity
    management and hence credit creation in the banking system.
    Liquidity Requirement : Refer to requirement for banking institutions to keep a minimum
    percentage of liquid assets which are kept in the banks and yield returns. ( under Section
    38(1) )
    Money Market Operations (MMO) : MMO is another monetary tools to manage the credit
    situation in the financial system.
    Base Rate : Refers to main reference rate for retail loans. With base rate, banks in Malaysia
    can determine their interest rate based on a formula set by the central bank.

    (b) Placement : Introduction of Illicit Funds, Breaking into Smaller Amounts, Layering.
    Layering : Complex Transactions, Use of Shell Companies, Manipulating Financial
    Instruments.
    Integration : Reintroduction into the Legitimate Economy, Investment in Legal Ventures, Real
    Estate Transactions.

    (c) -Deposits with other financial institutions


    -Loans and advances commercial banks
    -Securities
    -Gold & Forex reserve

    PYQ JULY 2023 FIN263

    Part A – Question 1

    (a) SRR – BNM will increase the SRR rate for the banking system to keep more money (EL) with
    BNM in order to reduce lending activity to control inflation.
    LR – An increase in LR requires banking institutions to keep more liquidity in the banks and
    therefore reduce lending ability.
    MMO – During tight monetary policy, BNM sells the government securities to banking
    institutions in order to reduce their reserves for lending ability. BNM can also outright
    borrowing from banking institutions in order to reduce their reserves for lending ability.

    (b) I cant find it on google T_T…

    (c) -Capital
    -Reserve
    -Profit
    -Demand deposit
    PYQ JULY 2023 FIN263

    Part B – Question 1

    False

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