practice_set.docVIP

Ⅰ. Multiple Choices Questions 37 Question 1: Which of the following makes the exchange of goods and services more efficient? A: barter B: money C: government transfers D: some combination of government transfers and barter Question 2: Sellers of financial claims promise to pay back borrowed funds: A: by borrowing extra funds in the future B: based on their expectation of having surplus funds in the future C: by selling other assets D: by reducing their costs relative to their incomes. Question 3: Both real and financial assets have four principal attributes that are significant factors in the investment decision process: I liquidity II capital gain III risk IV return or yield V time pattern of future cash flows VI price and cash flow volatility A: I, II, III, IV B: I, III, IV, V C: I, III, IV, VI D: II, III, IV V Question 4: A well-functioning financial market includes all of the following EXCEPT: A: a persistent increasing liquidity for most assets B: an increased ease of restructuring portfolios of assets C: information is quickly assimilated into asset prices D: a selection of financial assets with similar timings of cash flow to reduce risk. Question 5: Which of the following are generally discount securities? A: negotiable certificates of deposit B: commercial papers C: bank bills D: unsecured notes Question 6: The level of banks’ share of assets of all Australian financial institutions from the 1950s onwards first _______, then in the 1980s _______, and recently has _______due to securitisation of banks’ assets. A: increased; decreased; increased B: increased; decreased; remained stable C: decreased; increased; decreased D: decreased; increased; remained stable Question 7: Banks have gradually moved to liability management in the management of their balance sheets. Which statement best describes liability management? A: The loan portfolio is tailored to match the available deposit base. B: The deposit base is managed in order to fund loan and other