8. Usually the worst kind of debt is:

a. Borrowing to invest

b. Borrowing to purchase depreciating assets c. Borrowing to fund lifestyle

d. Borrowing to purchase appreciating assets

12. Looking at fixed interest strategies which statement best describes a passive strategy?

a. Investors invest in one bond and maintain it until it reaches maturity

b. Investors evenly allocate funds invested in bonds in each of several maturity classes

c. Investors establish a diversified portfolio of bonds and maintain it for a long period of time

d. Investors allocate funds to follow interest rate forecasts and alter the portfolio in response to changes in interest rate expectations

6. On which of the following cases, Capital Gains Tax (CGT) is NOT applicable?

a. A piece of land adjacent to a family home

b. Sale of investment property

c. A property purchased on 19 September 1985

d. A family home owner of which is not an Australian resident