Topic 4 - Fin Institutions

Topic 4 - Fin Institutions - BANK 1005 Derivatives and...

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BANK 1005 Derivatives and Securities Markets P a g e | 1 TOPIC 4 – FINANCIAL INSTITUTIONS MULTIPLE CHOICE QUESTIONS 1. Which of the following is (are) assets of a bank: A) Customer deposits B) Government securities C) Loans to customers D) B and C E) A and C 2. Investment bankers A) Act as intermediaries between issuers of stocks and investors. B) Act as advisors to companies in helping them analyze their financial needs and find buyers for newly issued securities. C) Accept deposits from savers and lend them out to companies. D) A and B. E) A, B, and C. 3. Commercial banks differ from other businesses in that both their assets and their liabilities are mostly A) Financial. B) Illiquid. C) Real. D) Owned by the government. E) Regulated. 4. Operational risk for a bank results from: A) Changes in interest rates B) Inadequate internal controls C) Possibility of default on its debt obligations D) Failure on the part of bank employees and its systems E) Both B and D 5. Capital adequacy of a bank: A) Is based only on its core capital B) Is the requirement for banks to hold sufficient equity to protect depositors C) Refers to rules developed by the Basel Accord D) Both B and C E) Does not take into account the off-balance-sheet business 6. Which body is mainly responsible for the regulation of deposit-taking institutions: A) APRA B) RBA C) ASIC D) ASX E) ACCC 7. Which of the following functions do managed fund companies perform for their
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Topic 4 - Fin Institutions - BANK 1005 Derivatives and...

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