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Easy finance, an Australian finance company, makes some loans to companies that intend to buy some buildings for their production. The loans are funded by
Easy finance, an Australian finance company, makes some loans to companies that intend to buy some buildings for their production. The loans are funded by issuing commercial paper to Brisbane local government, who has a financial surplus. Which type of channelling of funds is it? A. Intermediation without the use of financial markets OB. Two separate cases of direct finance, both using financial markets for the source of funds. OC Intermediation using the financial markets for the intermediary's use of funds only OD Intermediation using the financial markets for the intermediary's source of funds only E. Intermediation using the financial markets for the intermediary's use and source of funds B Telstra issues shares to Mr Strachan, in order to build a new communication tower. Which of the following statements is correct? A. The process is unambiguously indirect finance. B. The process is direct finance only if Mr Strachan and Telstra are depositors at the same bank. The process is direct finance if Mr Strachan has bought the shares with the part of his wage that he has not spent on consumption and real assets. D. The process is direct finance if Mr Strachan did not borrow the money used for the purchase of the shares. O E. Both Cand D are correct. . Which of the following statements concerning PERLS X capital notes is correct? A. Trigger events can only be initiated before the call date. B. Trigger events will result in conversion of capital notes to shares only if the mandatory exchange conditions are met. OCThe RBA can initiate a trigger event. OD. Trigger events can happen before the issue date. OE. A capital trigger can be initiated if the issuing bank has insufficient common equity tier 1
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