Understanding Banks & NBFIs: Key Concepts and Quiz Insights

Incorrect Mark 0.00 out of 1.00 Da… / M… / FINS5512-5243_00164 / Week 2 - Banks & NBFIs / Week 2 Assignment - Banks & NBFI Started on Sunday, 18 February 2024, 9:52 AM State Finished Completed on Sunday, 18 February 2024, 10:27 AM Time taken 34 mins 51 secs Grade 9.00 out of 10.00 ( 90 %) QUIZ Which of the following is NOT associated with Australian regulatory structure? I. Regulation of market integrity and consumer protection by ASIC II. Supervision of competition policy by Australian Competition and Consumer Commission (ACCC) III. Maintaining the soundness and stability of the ±nancial system by RBA IV. Prudential regulation of authorised deposit taking institutions by APRA and emergency liquidity support of the overall ±nancial system together with ensuring solvency of individual ±nancial institutions by RBA a. Only II  Incorrect b. Only II and IV c. Only IV d. Only I and III Refer to section 2.5  

Correct Mark 1.00 out of 1.00 Correct Mark 1.00 out of 1.00 Which of the following balance sheet portfolio items is NOT a bank liability? I Overdrafts II Lease ±nance III Call deposits IV Share capital V Consumer loans VI Certi±cates of deposits VII Term deposits I, II, IV and V  Correct answer. Overdrafts, lease ±nance, and consumer loans are bank assets. Share capital is a source of funds for a bank, however it is equity and not a liability. The rest of the items are bank liabilities. I, V and VII II, V, and VII I, II and VII Only I Your answer is correct. Refer to sections 2.2 and 2.3 Which of the following statements about market-rate-related items such as forward-rate agreements is incorrect? a. They are generally called off-balance-sheet items b. They are liabilities that may require an out²ow of funds for a bank c. They are included in the BIS capital-adequacy guidelines d. They form a small part of banks' OBS business  Correct Refer to the section 2.4

Correct Mark 1.00 out of 1.00 Correct Mark 1.00 out of 1.00 Correct Mark 1.00 out of 1.00 Which of the following is not one of the principal aims of Basel III: a. Boost the banking sector's ability to absorb shocks arising from ±nancial and economic stress b. Improve risk management and governance c. Bring all off-balance sheet exposures to accounts  Correct d. Strengthen banks' transparency and disclosure. Please read Learning Objective 2.7.4 Basel III LVR stands for leverage-to-valuation ratio and measured as the percentage of borrowed money to the valuation of the property being mortgaged. True False  Refer to Extended learning in Ch. 2 Finance companies generally: a. issue shares and use the proceeds to buy bonds. b. raise funds in ±nancial markets to lend to households and companies.  Correct c. raise funds from banks to lend to households and companies. d. issue bonds and use the proceeds to buy shares. Refer to section 3.9

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Correct Mark 1.00 out of 1.00 Correct Mark 1.00 out of 1.00 Export Finance and Insurance Corporation's function is: a. solely to lend directly to small- or medium-sized businesses involved in export trade b. solely to guarantee trade finance to small- or medium- sized businesses involved in export trade c. to encourage export trade by providing trade insurance and financial services  Correct d. solely to provide insurance for Australian suppliers of goods and services against non-payment Refer to section 3.12 The main difference between project ±nance and other forms of lending is: a. lenders base their participation on expected future cash ²ows and assets of the project.  Correct b. lenders take a major equity stake in the project. c. the project company, which is set up as a separate legal entity, relies heavily on venture capitalists for equity funding. d. the lenders have a claim on the assets of the project as well as the sponsors. Refer to section Extended Learning -Learning Objective 3.10

Correct Mark 1.00 out of 1.00 Correct Mark 1.00 out of 1.00 Which of the following statements about superannuation funds is false? None of the other four statements regarding superannuation is false.  Correct answer. All of the other four statements are true. An accumulation superannuation fund varies its superannuation income depending on the strength of the performance of the plan’s investments. Rather than having their superannuation entitlements taxed as ordinary income, an early retiree has the ability to hold their eligible superannuation funds in a rollover scheme that keeps their funds in a taxation environment that is more favourable. A de±ned bene±t fund obliges the employer to make good on any shortfall in the fund when the bene±t is to be paid out. A de±ned bene±t superannuation fund involves the calculation of its payout amount through a formula based at the time that the payee entered the fund. Your answer is correct. Refer to section 3.5 The ±nancial institution that pools funds for individuals and then invests them in both the money and capital markets is a: a. savings bank. b. credit union. c. investment bank. d. managed fund.  Correct Refer to section 3.2 Previous Activity Jump to... Next Activity

Week 2 Assignment - Banks & NBFI_ Attempt 2 _ UNSW

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