QUESTION 8

Which of the following statements concerning PERLS X capital notes is NOT correct?

	A.	A trigger event can happen before the call date.
	B.	Trigger events can be initiated before the mandatory exchange date.
	C.	The RBA cannot initiate a trigger event.
	D.	A capital trigger can be pulled if the issuing bank has insufficient regulatory capital.
	E.	Trigger events are subject to exchange conditions before the conversion can happen.

QUESTION 9

Agrogreen, a farming company, needs to borrow money for the setting of a new farm. At the time of borrowing money, Agrogreen's balance sheet records _____________________.

	A.	an increase in the bonds it issued and an increase in its bank deposits.
	B.	an increase in its liabilities and a decrease in its equity.
	C.	an increase in the loans in its liability side and an increase in its bank deposits.
	D.	Both A and B
	E.	Both A and C

QUESTION 10

The conversion of capital notes to shares will be STOPPED at mandatory exchange date if ___________________.

	A.	the BBSW at the mandatory exchange date is low
	B.	the price of the shares in the secondary market has decreased too much
	C.	the price of the bonds have decreased too much
	D.	the price of the capital notes in the secondary market has decreased too much
	E.	the VWAP 25 days before the exchange is too high

QUESTION 12

Which of the following statements is NOT correct?

The limitation to money creation by banks when they make loans is due to _______________________.

	A.	the necessity to back up deposits with central bank money
	B.	the constraint that borrowers are demanding loans
	C.	the necessity that loans provide a net profit
	D.	Both B and C are incorrect
	E.	None of A B or C statements are incorrect.