Exam Q's

pptx

School

Kaplan Business School *

*We aren’t endorsed by this school

Course

FNS40815

Subject

Finance

Date

Jan 9, 2024

Type

pptx

Pages

Uploaded by SuperGoldfinch3960

Providing a payment mechanism that is effective and provides certainty is an essential feature of an efficient financial system. Select one: True v False The RBA shares its responsibility for most payment systems and setting of monetary policy with ASIC and: Select one: APRA v ACCC ABS MFAA Building societies collect funds mainly by tapping into household savings so they can provide mortgage finance for housing. Select one: True v False APRA is responsible for the administration and regulation of the personal insolvency system, proceeds of crime, trustee services and the administration of the Personal Property Securities Register (PPSR). Select one: True %X False The correct answer is 'False'. Who pays a mortgage broker a fee or commission for arranging the loan based on the product sold? Select one: APRA the credit provider v the customer None of the above

The National Credit Code applies to credit contracts entered into on or after: Select one: 1 July 1999 1 July 2010 v 1 July 2009 1 January 2013 Short-term loans of 62 days or less, but only where the fees and charges are less than 5% of the amount of credit and the interest rate is less than 24%, are covered by the National Credit Code. Select one: True False v A key principal of the National Credit Code states that a credit provider must not enter into a contract with a person that is unsuitable, such as a loan where the customer can't repay without suffering hardship. Select one: True v False Low-doc and no-doc loans have become easier to get under the ‘responsible lending' provisions of the NCCP? Select one: True False v The AML/CTF Act brings Australia’s prevention and reporting regime for money laundering and terrorism financing into line with international standards. Select one: True v False

A mortgage broker is someone who: Select one: provides credit directly to customers. determines the terms of credit products. specialises in arranging home loans for customers. negotiates with banks, credit unions and other credit providers on the customer’s behalf to arrange loans. % The correct answer is: specialises in arranging home loans for customers. The personal lending market is made up of individuals who borrow money to fund which of the following? Select one: houses, cars and consumer goods v goods exempt from the Privacy Act goods exempt from the National Credit Code property and business expansion Split or combination loans: Select one: offer high initial payments, which decrease over the term of the loan allow borrowers to take up part of their loan at a variable rate and part at a fixed rate v allow for low initial repayments, which increase over the term of the loan mean that the borrower’s interest rate and payments are fixed for a set period Which of the following are not types of commercial lending products: Select one: leasing finance debtor finance commercial bills personal home loans v Which of the following statements about clients’ ‘life cycle’ and needs is most accurate? Select one: Client needs change but there is no relationship between changing needs and the client's stage of life. There is too much emphasis on client needs and life cycle as clients will always make it clear what they need. Needs change as clients progress through the different stages of their lives. v Needs do not change greatly as clients move through the different stages of their lives.

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One of the advantages of a consolidated single rate loan secured by a mortgage is: Select one: the overall interest rate is higher the loan is not repaid until the mortgage is repaid the overall interest rate is lower v there is a limit on the number of loan amounts that can be consolidated Which of the following is not included in the comparison rates provided by lenders when they advertise the interest rates on their loan products? Select one: government charges v frequency of repayments fees and charges relating to the loan interest rate Hillside Manufacturing Pty Ltd makes fencing materials. They anticipate securing a large contract that will mean the need to purchase additional new equipment. They want to secure finance now at the current interest rate. Which of the following products would be most appropriate for their needs? Select one: overdraft facility forward-start loan agreement v residential mortgage loan commercial bill facility Chattel finance is: Select one: also known as a ‘master lease’ and is used to put preapproved finance in place for business appropriate for salaried employees for the purchase of motor vehicles to be used for business < a commercial bill of sale facility that can be used to finance the purchase of business equipment a finance facility for investment properties The correct answer is: a commercial bill of sale facility that can be used to finance the purchase of business equipment

Debtor finance is a cash flow product for businesses based on security provided by: Select one: funds owed to the business by a client funds invested by the business in product development the business owner’s title over a commercial mortgage funds accrued through fundraising events Which of the following business circumstances would be suitable for a trade finance facility? Select one: short-term financing for making investments short-term financing for the purchase of goods short-term financing for the purchase of commercial property short-term financing for the period between shipping and payment

The Australian Credit License (ACL) is issued by ASIC and requires that the applicant is a fit and proper person. Select one: True v False The process of 360 degree feedback only consists of a 'top-down' approach, that is manager to a subordinate. Select one: True False v Which of the following is not part of a performance appraisal? Select one: a probation period v aligning individual goals with overall company goals what the employee did well which skills and behaviours need strengthening Presentations involve: Select one: use of technology such as computers, screens, microphones or public address systems structuring detailed information or presenting complex ideas speaking in public to an audience all of these v Policies and procedures need to be accessible, comprehensive, accurate, regularly reviewed and compliant. Select one: True v False

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