Question 3 The Central Bank of Malaysia (BNM; Malay: Bank Negara Malaysia) is the Malaysian central bank. Established on 26 January 1959 as the Central Bank of Malaya (Bank Negara Tanah Melayu), its main purpose is to issue currency and act as banker and adviser to the government of Malaysia.

a) What are the other main functions of Bank Negara besides the above-mentioned. List further THREE (3) and back up with relevant Key Performance Indicators (KPIs). where applicable. (5 Marks)

b) List the most important Laws and Regulations for Financial Markets in Malaysia and give a brief insight of THREE (3) applicable laws in terms of their objectives. Try to relate them to an international context, where applicable. (5 marks)

subject:financial market and institution