File: Chapter 01 The Financial Services Industry: Depository Institutions

Multiple Choice

[QUESTION]
A non-bank depository institution is also referred to as:
A. Drift.
B. Thrift.
C. Phrift.
D. Draft.
Answer: B
Level of difficulty: 1

[QUESTION]
Which of the following statements is true?
A. A non-bank depository institution is also referred to as drift.
B. A non-bank depository institution meets the legal definition of a bank.
C. A non-bank depository institution undertakes exactly the same activities like a bank.
D. A non-bank depository institution is also referred to as drift and a non-bank depository institution undertakes exactly the same activities like a bank .
E. None of the given answers.
Answer: E
Level of difficulty: 2

[QUESTION]
Which of the following statements is true?
A. Authorised depository institutions are those that have been granted an authority by the RBA to operate in Australia.
B. Authorised depository institutions are those that have been granted an authority by APRA to operate in Australia.
C. Authorised depository institutions are those that have been granted an authority by the Australian Government to operate in Australia.
D. Authorised depository institutions are those that have been granted an authority by ASIC to operate in Australia.
E. None of the given answers.
Answer: B
Level of difficulty: 2

[QUESTION]
Which of the following statements is true?
A. Building societies are depository institutions.
B. Building societies usually operate on a cooperative basis.
C. In case of building societies the depositors are also members of the society.
D. All of the given answers.
Answer: D
Level of difficulty: 2

[QUESTION]
Which of the following statements is true?
A. Credit unions are mutual cooperative organisations.
B. Credit unions provide deposit facilities, personal and housing loans