The Reserve Bank of Australia manages the liquidity of the financial system by: Select one: a. the issuing of notes and coins O b. borrowing money from the government O c. by buying and selling securities and other financial instruments d. borrowing money from foreign banks Which of the following statements about financial risk is NOT correct? Select one: a. The higher the debt-to-equity ratio, the higher the degree of financial risk b. Interest payments on debt must be paid when they fall due C. When a business fails equity holders rank ahead of providers of debt due to their higher financial risk O d. The higher the proportion of debt the higher the potential return on shareholders' funds Nex A stock with a beta value of one: Select one: a. will have positive rates of return ob. will have twice the systematic risk compared to the market portfolio O c. has the same systematic risk compared to the market portfolio O d. has a constant rate of return nt Student Multi-Groups A base currency is: Select one: O a. the first-named currency in the foreign exchange quote where one unit expressed in terms of another currency being traded b. the second-named currency in the foreign exchange quote used to express the value or price of the base currency O c. the rate at which one nation's currency can be exchanged for another's at the present time O d. none of the above Next page