An investor is considering different methods of investment, including the use of a public unit trust. Which of the following is not a function of a public unit trust?

1. It acts as a vehicle for the pooling of investor funds.
2. It provides a degree of investor protection through a responsible entity.
3. It allows small investors access to investments in international markets.
4. It locks in a trust unit price by listing on a stock exchange.

Medium-term notes (MTNs) sold into the euromarkets may be defined as having several specific features. Which of the following sets are typical features of euro-MTNs? I. Include a range of maturities; II. Denominated in a range of currencies; III. May have fixed rate interest coupons attached; IV. Are sold into the market in a single issue; V. May have floating interest rate coupons attached; VI. May be issued periodically or continuously.

1. I, II, III, IV, V
2. I, II, III, V, VI
3. I, III, IV, V, VI
4. all of the answers provided

Eurobonds are usually listed on a major stock exchange. Which of the following is an important reason for listing?

1. Listing facilitates an active secondary market on the exchange.
2. Listing ensures that the issuer complies with minimum disclosure standards.
3. Listing provides a central marketplace where transactions can be settled.
4. All of the answers provided

Prudential supervision of banks relies heavily on capital adequacy standards. The main reason for reliance on standards related to the level of bank capital is:

1. the standards restrict the financial leverage of banks.

2. banks need to raise capital to generate profits.

3. every business requires some shareholders' funds.

4. accounting principles require that loan losses must be written off against capital