FIN111 FINAL EXAM TEST BANK-comprehensive with 100% verified answers-2022

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1. Which of the following financial institutions does NOT accept deposits? *a. Finance company b. Credit union c. Building company d. Commercial bank 2. Building societies and credit unions tradit... ionally focus on whereas finance companies have activities in . a. consumer loans; business loans b. business loans; consumer loans *c. consumer loans; consumer and business loans d. government securities; corporate bonds. Building societies provide long-term residential loans (for consumers) and credit unions provide short- term consumer loans. Finance companies are more diversified as they offer loans to consumers and businesses. They compete with banks for business loans. 3. Which of the following statements is NOT correct? *a. Credit unions are not allowed to accept deposits from retail investors. b. Credit unions and building societies are supervised by APRA. c. Finance companies are not allowed to accept deposits. d. Finance companies are supervised by ASIC. 4. Building societies, credit unions and finance companies than banks. a. are subject to more regulation *b. are far more numerous c. are larger in scale d. are growing at a higher pace 5. The major assets of building societies are a. mortgage-backed securities. b. investment securities. *c. residential mortgages. d. cash and liquid assets. 6. Which of the following statements is NOT correct? The sale of mortgages to a third party by a building society is for the building society. a. a source of liquidity *b. a source of interest income c. an opportunity to gain noninterest income d. an opportunity to make additional mortgage loans 7. The major class of assets for building societies is a. investment securities. b. cash and liquid assets. c. retained earnings. *d. loans and advances. CONTINUED............. [Show More]

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