Which of the following is correct? Managed funds

Select one:

a.issue bonds and shares to raise funds.

b.allow small investors to get the benefits of economies of scale.

c.diversify their activities over several sectors of the economy, over several parts of the world and over several types of financial instruments.

d.make loans to businesses and households.

Select one:

a.liquidity decreases and interest income decreases.

b.liquidity decreases and interest income increases.

c.liquidity increases and credit risk increases.

d.implicit interest increases and explicit interest decreases.

The financial institution that is a specialist provider of financial and advisory services to companies is a/an:

Select one:

a.building society.

b.finance company.

c.credit union.

d.investment bank.

When the financial system has achieved a high degree of efficiency,

Select one:

a.borrowers are able to finance at the highest possible cost.

b.surplus spending units are able to receive the lowest return on their savings.

c.lenders have a limited choice of financial investments.

d.transaction costs are low.

The changes to the regulations for the banking industry under deregulation in the mid-1980s have resulted in _______ the growth of Australian banking sector.

Select one:

a.decreasing

b.not altering

c.dramatically decreasing

d.increasing

Superannuation funds that aim at delivering a longer-term income stream and capital appreciation by acquiring a diversified asset portfolio across a wider risk spectrum are classified as:

Select one:

a.capital stable funds.

b.capital guaranteed funds.

c.balanced growth funds.

d.managed growth funds.

Liquidity in financial terms is:

Select one:

a.the ease with which an asset can be sold at the published market price.

b.the best measure of risk of a financial asset.

c.a feature of money only.

d.to lower the rate of return for an asset.

Financial intermediaries, by managing the deposits they receive, are able to make long-term loans while satisfying savers' preferences for liquid claims.' This statement is referring to which important attribute of financial intermediation?

Select one:

a.Asset transformation

b.Credit risk transformation

c.Denomination transformation

d.Maturity transformation

The _______ is created by a financial connection between providers and users of short-term funds.

Select one:

a.capital market

b.share market

c.financial market

d.money market

Most financial intermediaries issue _____ financial claims and purchase ______financial claims.

Select one:

a.indirect; direct

b.indirect; indirect

c.direct; indirect

d.direct; direct