University of New South Wales
School of Banking and Finance
FINS 1612 Capital Markets and Institutions
Final Examination
Session 1 2006
Instructions:
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
The examinations office will provide calculators for the exam.
The candidate is not allowed to use any other examination aid.
This paper may NOT be taken out of the examination room.
Please identify the letter of the choice that best completes the statement or answers the question and record your selection on the answer sheet provided. There are 90 Questions.
Chapter 2:
1. 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
2. Which of the following is a role of a bank?
A: Attract funds from the capital markets to facilitate borrowing by the household sector.
B: Facilitate the flow of funds from borrowers to lenders.
C: Facilitate the flow of funds from savers to borrowers.
D: Manage the level of interest rates.
3. Banks have gradually moved to liability management in the
