Fins1612 Final Exam 2006

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University of New South Wales
School of Banking and Finance

FINS 1612 Capital Markets and Institutions
Final Examination
Session 1 2006


Time allowed: 2 hours + 10 minutes reading time

During reading time the candidate is not to make any notes.

Total number of questions: 90 (1 mark each)

All questions are to be answered.

This exam constitutes 50% of your grade.

Write and sign your name and student number on the examination question paper.

Also enter your name and registration number in the spaces provided on the multiple choice answer sheet.

All answers must be recorded in pencil on the multiple choice answer sheet provided

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8. 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:

A: managed growth funds
B: capital guaranteed funds
C: balanced growth funds
D: capital stable funds.

9. The financial institution that pools funds for individuals and then invests them in both the money and capital markets is a:

A: savings bank
B: credit union
C: investment bank
D: managed fund.

10. A mutual investment fund that specialises in short-term debt instruments and usually managed by a financial intermediary is called:

A: a money market fund
B: a cash management trust
C: a certificate of deposit fund
D: a bank bill fund.

Chapter 4:

11. Which of the following forms of business organisation is characterised by limited liability?

A: sole partnership
B: partnership
C: a general partnership
D: a company

12. The owners of _______ face unlimited liability.

A: sole proprietorships only
B: sole proprietorships and partnerships only
C: corporations only
D: partnerships and corporations only

13. All of the following are advantages of a corporation EXCEPT:

A: freely transferable ownership
B: limited liability
C: access to capital markets
D: low management costs.

14. A primary aim of corporate management should be to:

A: maximise