THERE ALL MULTIPLE CHOICE :)

1. Financial institutions facilitate the flow of investment funds:

a.

any of the options.

b.

from savers to borrowers.

c.

from SSUs to DSUs.

d.

from the household sector to the business sector.

2.

Edmund Company Limited is expected to grow at a constant rate of 8%. If the companys next dividend is $0.15 and its current price is $12.5, what is the required rate of return on this share? (Round to 2 d.p)

a.

9.01%

b.

15.4%

c.

7.2%

d.

9.2%

3.

Both Part IX debt agreements and Part X arrangements are available to:

a.

All of the options.

b.

individuals.

c.

entities with less than $1 million of net assets.

d.

parties agreeing to appoint a trustee to negotiate settlement terms with creditors.

4.

Superannuation guarantee contributions in Australia are levied on:

a.

employers.

b.

employers and the self-employed.

c.

employers and employees.

d.

employees.

5.

You are considering purchasing a new camper that will cost you $43,000. The dealer offers you 2.9% APR financing for 48 months (with payments made at the end of the month). Assuming you finance the entire $43,000 and finance through the dealer, your monthly payments will be (round to the nearest dollar):

a.

$950

b.

$414

c.

$758

d.

$1001

6.

Secondary financial markets are similar to:

a.

used-car markets.

b.

new-car markets.

c.

direct auction markets.

d.

all of the options.

7.

Which of the following is NOT a bank liability?

a.

Transaction accounts offered by the bank.

b.

Negotiable Certificate of Deposit issued by the bank.

c.

Time deposits offered by the bank.

d.

Deposits at the Reserve Bank of Australia.

8.

In relation to which document supplied by the financial adviser does the Australian Securities and Investment Commission (ASIC) apply the test of what a person would reasonably require for the purpose of making a financial decision?

a.

All of the options

b.

Statement of Advice

c.

Financial Services Guide

d.

Limited financial plan

9.

Which ONE of the following statements is true?

a.

All of the options are true.

b.

The interest rate, or yield, on a security varies inversely with its degree of marketability.

c.

U.S. Treasury bills have the largest and most active secondary market and are considered to be the most marketable of all securities.

d.

The lower the transaction costs, the greater a security's marketability will be.

10.

A Statement of advice (SOA) must:

a.

all of the options.

b.

assess the complexity of the advice provided.

c.

incorporate the level of the clients financial literacy in its presentation.

d.

tailor advice to the needs of the client.

11.

IMB Bank offers a holiday loan that will require you to pay 4% per annum with quarterly compounding. Which of the following is the closest to the effective annual rate charged by the bank? (round to 2 d.p.)

a.

3.04%

b.

3.02%

c.

4.08%

d.

4.06%

PLEASE be quick my homework is due soon and I'm really struggling on these its due in 20 minutes