QUESTION 11

Under what circumstances would an individual (as opposed to a bank) be liable for the fraudulent use of cheques?

a.None of the answers are correct.

b.The account holder is not careful in the preparation of cheques, such as pre-signing cheques with the payee blank.

c.A situation where the party forging a cheque has a close connection to the account holder, such as a child or wife.

d.A situation where the accountholder discovers they are the victim of fraud. They report the fraud promptly, but the bank is unable to locate the perpetrator and they continue to engage in fraudulent activity.

QUESTION 12

What are the perceived benefits of open banking?

a.All of the answers are correct.

b.By enabling third parties to access customer information, this can reduce transaction costs, lower barriers to entry, and promote competition within the industry.

c.By creating demand for the information, the banks can generate additional revenue in selling the information to new market entrants.

d.By disclosing customer information, it is believed that this will increase transparency of Bank's activities.

QUESTION 13

Consider the Banking Oath. Which answer best describes the obligations of any signatory to the oath?

a.It obligates the signatory to go beyond acting ethically, it requires them to call out or admonish unethical behaviour.

b.It acknowledges the signatory's responsibility for their own actions.

c.All answers are correct

d.The signatory attests they will act in good faith, ethically, and with honour.

QUESTION 14

Which statement doesnotaccurately reflect legal regulation under any of the legislation discussed in topic 1of the course?

a.Breaching the applicable shareholding threshold under the Financial Sector Shareholdings Act 1998 (Cth) is a criminal offence.

b.It is permissible to hold 25% of the shares issued by the Commonwealth Bank of Australia.

c.Crown Casino is subject to proceeds of crime laws, such as a demand that it produces customer records if ordered by a court to do so.

d.It is permissible to hold 25% of the shares issued by a financial planning firm.

QUESTION 15

Which statement best describes the Council of Financial Regulators role in the financial system?

a.It is comprised of four members, APRA, ASIC, the RBA, and the ACCC. Their role is to attend council meetings and enable cooperation between the regulators by sharing information, discussing mutual regulatory issues, and where necessary, coordinating resources.

b.It is a form of self-regulation involving key industry leaders and includes representation from the banking, insurance, superannuation, and financial planning industries.

c.It has been criticised heavily due to the failures uncovered during the Banking Royal Commission.

d.(a)It is intended as a platform for key financial regulators to meet and coordinate efforts within financial regulation which occurs through sharing information, coordinating resources, and discussing mutual regulatory issues.

QUESTION 16

Which statement about banking regulation in Australia is correct?

a.If a payday lender wishes to operate in Australia, it must be licensed by the Australian Securities and Investments Commission.

b.The terminology is highly regulated and certain terms such as 'bank' or 'credit union' may only be used with prior approval.

c.It is the bank's fault that Heath's bank account is always low on funds.

d.Anyone wishing to carry on banking business within Australian must apply in writing to the Australian Securities and Investments Commission.

QUESTION 17

What is the Role of the RBA under theReserve Bank Act 1959(Cth)?a.The economic prosperity and welfare of the people of Australia

b.The economic prosperity and welfare of Heath.

c.Employment.

d.The stability of the currency of Australia and foreign countries through its printing of foreign currency.

QUESTION 18

What best describes the operations of the Reserve Bank of Australia?

a.It is comprised of two boards, the Payment Systems Board and the Bank of Australia Board.

b.It is currently printing the currency of several other countries.

c.In the event of disagreement between the two boards, the decisions of the payment systems board will prevail.

d.Whilst it is has the ability to act as a lender of last resort, it does so infrequently, having done so on only three occasions.

QUESTION 19

Which statement is correct in relation to the investigation powers of the Australian Securities and Investments Commission (ASIC)?

a.If legal professional privilege is claimed, ASIC is mandated to accept the claim of privilege and cannot make further inquiries to ascertain whether the claim of privilege is legitimate.

b.All answers are correct.

c.The right to refuse to answer a question in order to prevent self-incrimination isnotavailable for those under examination by ASIC.

d.Statements that are self-incriminating are admissible in all forms of action ASIC might take against the witness being examined, e.g both criminal and civil matters.

QUESTION 20

When conducting legal research, which websites are best for locating legislation/ acts of parliament?

a.Halsbury's Laws of Australia.

b.Informit.

c.Austlii

d.Austlii and government websites (state or federal depending upon whether the laws are state or federal).