Which of the following facts is true?

		Selling government securities in the capital markets is conducted by RBA to lower interest rates.
		APRA undertakes open market operations in the short-term money market to affect the cash interest rate.
		RBA undertakes open market operations in the short-term money market to affect the cash interest rate.
		APRA is the regulator for money market corporations and sets prudential standards to govern them.

The repricing model ignores information regarding the distribution of assets and liabilities within maturity buckets. This limitation of the model refers to:

		over-aggregation
		off-balance-sheet activities
		runoffs and pre-payments
		market value effect

s large investment banks converted from partnerships to corporations, the separation of ownership from control had the potential to lead to

		a reduction in moral hazard due to the elimination of the principal-agent problem.
		a moral hazard problem resulting in a principal-agent problem.
		a reduction in adverse selection due to the elimination of the principal-agent problem.
		an adverse selection problem resulting in a principal-agent problem.

If an FI's repricing gap is less than zero, then:

		its liability costs are less sensitive to changing market interest rates than are its asset yields
		its liability costs are more sensitive to changing market interest rates than are its asset yields
		it is deficient in its capital ratio requirement
		it is deficient in its required reserves

Investment banks are vulnerable because

		the maturity of their assets is less than the maturity of their liabilities.
		they tend to primarily hold short-term assets.
		they tend to be underleveraged.
		the maturity of their liabilities is less than the maturity of their assets.