Finance Questions

Choose the correct answer:(a) While pass-throughs and CMOs remain on banks and building societies balance sheets, mortgage-backed bonds (MBBs) remove mortgages from balance sheets as forms of off-balance-sheet securitisation.(b) While pass-throughs and CMOs help banks and building societies remove mortgages from their balance sheets as forms of off-balance-sheet securitisation, mortgage-backed bonds (MBBs) normally remain on the balance sheet.(c) Pass-throughs and CMOs are the same as mortgage-backed bonds (MBBs).(d) Pass-throughs are normally issued with multiple tranches whereas CMOS are only isssud in one tranche.

The ___________ is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired:(a) B Class(b) Z Class(c) R Class(d) A Class

The supervision of an FI s liquidity management is undertaken by the:APRARBAACCCASIC

Which of the following statements is true?(a) None of the listed options are correct.(b) Borrower-specific factors are factors that affect all borrowers operating in the same industry.(c) Market-specific factors are factors that are idiosyncratic factors arising from the market that affects single or a small number of borrowers.(d) Market-specific factors carry a higher weight compared to borrower-specific factors when deciding on whether to accept or to reject a loan application.

Besides reducing credit risks, an FI has an incentive to sell loans it originates for all of the following reasons except to:(a) lower reserve requirements(b) decrease core deposits(c) lower capital requirements(d) geographically diversify

As coupon rates on new mortgages fall:(a) there is a decreased incentive for individuals in the pool to pay off old, high-cost mortgages and refinance at lower rates(b) there is an increased incentive for individuals in the pool to pay off old, high-cost mortgages and refinance at lower rates(c) there is no effect on mortgage payments(d) individuals are inclined to sell off their mortgages

This propensity to prepay means:(a) realised coupons/cash flows on pass-through securities would conform to expected cash flows(b) realised coupons/cash flows on pass-through securities can often deviate substantially from the stated or expected coupon flows(c) realised coupons/cash flows on pass-through securities are prepaid(d) None of the listed options are correct.

the auditor is employed by and reports to the shareholders and NOT

who administers the corporations act (2001)

prepayments is considered to be an __ transaction

how many types of auditor opinions are there?

what is the golden rule for double entry accounting

who provides assurance on the accuracy of financial statements

any transaction that increases assets we record as a

retained profits is Essentailly a summary of what financial statement

Current assets are recorded on the balance sheet in order of :

any transaction that increases liabilities or equity we record as a

suppliers providing goods on credit is an example of past transactions that lead to

accumulated depreciation is what type of asset?

The link between the income statement and the balance sheet is through: