Question 1

The process of due diligence involves:

Accepted Answer

A)  underwriting of new equity issues by a company. 
B)  providing advice to companies on the raising of new equity. 
C)  detailed analysis of a firm's financial statements. 
D)  placement of securities to institutional investors. 
A)  underwriting of new equity issues by a company. 
B)  providing advice to companies on the raising of new equity. 
C)  detailed analysis of a firm's financial statements. 
D)  placement of securities to institutional investors.

Question 2

A hedge fund that takes a long position in the Australian foreign exchange market is forecasting Australian foreign currency will:

Accepted Answer

A)  decrease. 
B)  increase. 
C)  stay the same. 
D)  decrease in the long-term. 
A)  decrease. 
B)  increase. 
C)  stay the same. 
D)  decrease in the long-term.

Question 3

The form of financing for large tourist resorts,property developments,heavy industry and processing plant developments is called:

Accepted Answer

A)  euro finance. 
B)  conglomerate finance. 
C)  project finance. 
D)  lease finance. 
A)  euro finance. 
B)  conglomerate finance. 
C)  project finance. 
D)  lease finance.

Question 4

The financial institution that pools funds for individuals and then invests them in both the money and capital markets is a:

Accepted Answer

A)  savings bank. 
B)  credit union. 
C)  investment bank. 
D)  managed fund. 
A)  savings bank. 
B)  credit union. 
C)  investment bank. 
D)  managed fund.

Question 5

Which of the following statements about managed funds is incorrect?

Accepted Answer

A)  The assets of large managed funds may be managed by several professional managers. 
B)  A mutual fund is required to use the services of a mutual fund custodian. 
C)  Sources of funds for a managed fund may be in the form of monthly payments. 
D)  For Australia, recent figures show that the statutory funds of life offices have the largest amounts of assets under management. 
A)  The assets of large managed funds may be managed by several professional managers. 
B)  A mutual fund is required to use the services of a mutual fund custodian. 
C)  Sources of funds for a managed fund may be in the form of monthly payments. 
D)  For Australia, recent figures show that the statutory funds of life offices have the largest amounts of assets under management.

Question 6

Recent figures about superannuation assets in Australia show that the largest amounts of assets are in the ____:

Accepted Answer

A)  corporate superannuation funds. 
B)  industry corporation funds. 
C)  retail superannuation funds. 
D)  self-managed superannuation funds. 
A)  corporate superannuation funds. 
B)  industry corporation funds. 
C)  retail superannuation funds. 
D)  self-managed superannuation funds.

Question 7

A managed growth fund is designed to maximise the return from appreciation in the value of assets in its portfolio.

Accepted Answer

A) True 
 B)False

The process of due diligence involves:

A hedge fund that takes a long position in the Australian foreign exchange market is forecasting Australian foreign currency will:

The form of financing for large tourist resorts,property developments,heavy industry and processing plant developments is called:

The financial institution that pools funds for individuals and then invests them in both the money and capital markets is a:

Which of the following statements about managed funds is incorrect?

Recent figures about superannuation assets in Australia show that the largest amounts of assets are in the ____:

A managed growth fund is designed to maximise the return from appreciation in the value of assets in its portfolio.

A Modern Financial System: An Overview

Commercial Banks

The Share Market and the Corporation

Corporations Issuing Equity in the Share Market

Investors in the Share Market

Forecasting Share Price Movements

Mathematics of Finance: An Introduction to Basic Concepts and Calculations

Short-Term Debt

Medium-To-Long-Term Debt

International Debt Markets

Government Debt, monetary Policy and the Payments System

An Introduction to Interest Rate Determination and Forecasting

Interest Rate Risk

Foreign Exchange: The Structure and Operation of the Fx Market

Foreign Exchange: Factors That Influence the Exchange Rate

Foreign Exchange: Risk Identification and Management

An Introduction to Risk Management and Derivatives

Future Contracts and Forward Rate Agreements

Options

Interest Rate Swaps, Cross-Currency Swaps and Credit Default

Filters

Exam 3: Non-Bank Financial Institutions

The process of due diligence involves:

A hedge fund that takes a long position in the Australian foreign exchange market is forecasting Australian foreign currency will:

The form of financing for large tourist resorts,property developments,heavy industry and processing plant developments is called:

The financial institution that pools funds for individuals and then invests them in both the money and capital markets is a:

Which of the following statements about managed funds is incorrect?

Recent figures about superannuation assets in Australia show that the largest amounts of assets are in the ____:

A managed growth fund is designed to maximise the return from appreciation in the value of assets in its portfolio.

A Modern Financial System: An Overview

Commercial Banks

The Share Market and the Corporation

Corporations Issuing Equity in the Share Market

Investors in the Share Market

Forecasting Share Price Movements

Mathematics of Finance: An Introduction to Basic Concepts and Calculations

Short-Term Debt

Medium-To-Long-Term Debt

International Debt Markets

Government Debt, monetary Policy and the Payments System

An Introduction to Interest Rate Determination and Forecasting

Interest Rate Risk

Foreign Exchange: The Structure and Operation of the Fx Market

Foreign Exchange: Factors That Influence the Exchange Rate

Foreign Exchange: Risk Identification and Management

An Introduction to Risk Management and Derivatives

Future Contracts and Forward Rate Agreements

Options

Interest Rate Swaps, Cross-Currency Swaps and Credit Default

Filters