The borrower pays RM50 end of the year for unused Overdraft limit. Classify this type of bank income.

Select one:

A. commission

B. investment

C. Fee

D. Interest

Which of the following are the largest expenses in a bank income statement?

Select one:

A. Provisions for bad loans

B. Interest expenses

C. Electricity bills

D. Staff salaries

Which are the largest assets of the bank balance sheets that generate most of the bank income?

Select one:

A. Investment in securities

B. Loans and advances

C. Total receivables

D. Fixed assets

Which are the smallest liabilities in a bank balance sheet that does not require a repayment?

Select one:

A. Debts, liabilities & bill payables

B. Corporate deposits

C. Total equities

D. Customer deposits

Which of the following statement on Impaired loan is false?

Select one:

A. Interest continue to be earned by the bank when the loan is impaired

B. Loan is impaired if the borrower fails to pay for 3 consecutive months

C. Interest is suspended when the loan is impaired

D. Impaired loans affect bank profit

Bintan Bank income statement shows the total interest income of RM20 B and total interest expenses of RM5 B and its net interest margin is 2.5%. Calculate its total earning assets?

Select one:

A. RM600 B

B. RM50 B

C. RM6 B

D. RM15 B

Bulan Bank total equities are RM60 B while its Return on Equity (ROE) is 15%. Calculate Bulan Bank net profit.

Select one:

A. RM4 B

B. RM400 B

C. RM9 B

D. No correct answer

Which of the following statement on bank ROE is not true?

Select one:

A. ROE measures bank profitability

B. Large, impaired loans reduce ROE

C. ROE increases with an increase in profitable loans

D. ROE increases with increases in equity when profit is maintained

To overcome the thin NIM, banks are actively sourcing other incomes such as from__________________ to maintain their desired ROE.

Select one:

A. Investment in real estate

B. Investment income of high return bonds

C. Aggressively giving loans at a high-interest rate.

D. non-interest income or fee-based income

Banks derive the following benefits from the investment in financial market instruments EXCEPT.

Select one:

A. dividend

B. Service charges

C. Capital gain

D. Interest income