1.Westpac bank earns 5% on $4 billion of interest-earning assets. It has total liabilities of $2.5 billion, which on average costs 3%. If the bank has total equity of $2 billion, what is its Interest Rate Margin?

a.6.25% b.3.13% c.2.08% d.2.78%

2.Which of the following regulators is responsible for issuing the Australian financial services (AFS) licence?

a.Federal Treasury

b.The Australian Prudential Regulation Authority (APRA)

c.Australian Securities and Investments Commission (ASIC)

d.The Reserve Bank of Australia (RBA)