2643FinalSampleMCQ

2643FinalSampleMCQ - 2643 Practice Final Exam MCQs 1. Chen...

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2643 Practice Final Exam MCQs 1. Chen has $50,000 of his own money to invest. He has a margin loan available to add to this money to purchase Australian shares. The bank’s loan-to-value ratio (LVR) is 75%. How much does Chen have available to purchase a portfolio? A. $37,500 B. $150,000 C. $200,000 D. $66,667 2. A line of credit facility: A. does not have a debt limit B. does not require principal payments C. usually has an interest rate lower than the standard variable rate D. Statement B. and C. are both correct 3. Billy needs $35,000 per annum to live on in today’s dollars. If inflation remains low at 3% for the next 10 years, what amount will have the same buying power in 10 years time? A. $40,000 B. $47,000 C. $45,000
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4. Negative gearing is: A. Where the interest payments are approximately the same level as income earned from an investment. B. Where income earned from the investment is significantly less than interest paid on the borrowing. C. Where the amount borrowed to fund an investment is higher than the equity capital. D. The least risky gearing to use. 5. The percentage of share ownership in Australia by the adult population since 1992 has: A. increased B. remained constant C. decreased D. initially increased then steadily decreased since 2000 6. A share trader will be more likely to sell share futures contracts rather than the underlying shares if the futures price is: A. lower than the forward price for the shares B. the same as the forward price for the shares C. higher than the forward price for the shares D. none of the above 7. A futures trader who initially buys a share futures contract at $4.10 and subsequently sells a futures contract in the same share at $4.60 will realize what approximate return on a contract of 1,000 shares which required an initial deposit margin of 15%? A. -72.5% B. 12.2% C. 72.5% D. 81.3%
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8. According to the study by Campbell et al (2000) which of the following asset class has the highest variability in real return at a 10 year horizon? A. Equity B. T-Bill C. Long term bond D. Long term bond with matched maturity 9. How many characters are used to denote common stocks on the Australian stock market? A. 3 B. 4 C. 5 D. 3-5 10. Which of the following order type provide the possibility for investors to trade at a better price than the current market price? A. market order B. limit order C. stock loss order D. none of the above 11. Which of the following is not a secured debt? A. Margin lending B. Lines of credit C. Fixed/Variable rate mortgage D. All of the above are secured debt
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12. Which of the following is not assessable income to a taxpayer? A. Sale of land held by a property developer B. Aged pension C. Gift of a bottle of $100 scotch whiskey from a client to service provider for outstanding service where payment for services rendered has been made in full D. Payment from a privately owned company to a shareholder based on units of shareholding in the form of property held by the company 13. Which of the following about capital gains is incorrect?
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2643FinalSampleMCQ - 2643 Practice Final Exam MCQs 1. Chen...

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