Below are the factors that can affect country risk EXCEPT:

Select one:

a. Change in government

b. Corruption level

c. Government current account (import and export)

d. Change in the market interest rates

How does competition increase the fragility of a banking system?

Select one:

a. Banks pay higher interest rate for deposits

b. Banks improve their operational efficiency

c. Banks compete for customers and lend to low quality borrowers

d. Banks pay lower interest for lending

Liquidity risk is driven by:

Select one:

a. The volatility of interest rates

b. The weakness of internal control regarding bank operations

c. The maturity mismatch between bank assets and liability

d. The high level of liability in bank balance sheets

Suppose you have a payable invoice of GBP 200,000 to pay to your supplier in the United Kingdom. How much extra you have to pay if there is an increase in 100 pips of the current exchange rate with 1 pip equal to MYR 0.0001?

Select one:

a. RM 12,000

b. RM 2,000

c. RM 200

d. RM 20,000

The following can increase bank risk taking EXCEPT:

Select one:

a. Too big too fail doctrine

b. Discount window

c. Deposit insurance scheme

d. Minimum capital requirement

This facility allows an exporter to finance his production by applying another letter of credit using his current letter of credit that he gets from his buyer as the collateral. This facility refers to:

Select one:

a. Standby L/C

b. Back to back L/C

c. Revolving L/C

d. Transferable L/C

What governs the relationship between importers and exporters?

Select one:

a. Sale contract

b. Bill of lading

c. Letter of credit

d. Invoice

What is the best technique to reduce the exposure on certain types of borrowers:

Select one:

a. Pricing loans based on risk profile

b. Using collateral as the backup for loan defaults

c. Rationing the available credit facilities

d. Diversifying loan portfolio

What is the buying and selling rates in this quote: Spot US$/MYR 4.2910/00

Select one:

a. Buy 4.2910 and sell 4.2900

b. Buy 4.2910 and sell 4.3000

c. Buy 4.2910 and sell 4.3010

d. Buy 4.2900 and sell 4.2910

Which rate you'll be using if you want to exchange GBP 1,000 that you have in your account to MYR at a local bank in Malaysia? Note that you may pay the bank using online banking (i.e. online payment).

Select one:

a. Selling TT/OD

b. Buying TT

c. Buying Notes

d. Buying OD

THIS SUBJECT IS INTERNATIONAL BANKING

I HOPE I CAN RECIEVE EARLY