1.A wealthy investor offers to make a large investment into a managed fund in exchange for exclusive trading privileges. If the fund manager accepts the offer, in financial economics, this is known as the ____________.

Select one: a.crowing-out effect

b.agency problem

c.moral hazard

d.active investment

e.adverse selection

2.Which of the following is an intermediary? Select one: a.A stock exchange b.A broker c.A financial planner advisor d.A credit union e.None of the other given choices

3.Which of the following statements concerning banks off-balance sheet transactions is/are generally TRUE? Select one: a.They are a significant part of a banks business. b.They reflect use of risk management products. c.They represent an important source of banks income. d.Assets and liability are yet to be recorded in the balance sheet. e.All of the other given choices.

4.

Beck, Demirguc-Kunt & Peria (2007) consider access to and use of banking services across 99 countries. Which of the following is NOT suggested by the article?

Select one: a.The number of loans per capita measures use of banking services.

b.Access to banking services and government ownership of banks are negatively associated.

c.When there is more credit information sharing, banks can earn more interest income from their borrowers.

d.When the institutional environment is of lower quality, the access to banking services is lower.

e.The number of ATMs per square km measures geographical penetration of the banking system

5.

Given the following yield curve data:

Maturity (Years) Spot Rates 1 0i1 = 4.14% p.a. 2 0i2 = 5.29% p.a. 3 0i3 = 5.80% p.a. 4 0i4 = 6.25% p.a. The 1-year implicit forward rate, 1 year out: (Choose the most accurate option)

a.=5.29% p.a. b.>5.29% p.a. c.=4.14% p.a. d.=4.71 p.a. e.between 4.14% p.a. and 5.29% p.a.

6.All of the following represent intertemporal resource allocation, EXCEPT: a.housing borrowing. b.superannuation. c.bond investing. d.none of the other given choices. e.option trading.

7.

With reference to Viney and Phillips (2019), which of the following are the major uses of funds for building societies?

Select one: a.Deposits

b.Mortgages

c.Term loans

d.Credit card finance

e.Local infrastructure

8.That people become ________ willing to ________ consumption tends to increase interest rates. Select one: a.more; restrain b.less; postpone c.less; maintain d.more; postpone e.less; accelerate