Question 1

Payday lenders are finance companies that:

Accepted Answer

A)  finance goods sold by their parent companies.
B)  operate a credit plan under a retailer's name.
C)  offer very short-term loans at very high interest rates.
D)  target individuals with excessive levels of personal debt or those with several different loans.E) A) and D)
F) All of the above

Question 2

Building societies have been able to attract funding from shareholders by becoming corporations.

Accepted Answer

A) True 
 B)False

Question 3

Building societies have no comparative advantage over banks in terms of regulation.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

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 loansE) A) and B)
F) None of the above

Question 5

Credit unions:

Accepted Answer

A)  are not subject to capital regulation.
B)  can issue ordinary shares to meet their required capital.
C)  carry more capital relative to their risk-weighted assets than banks.
D)  can include shareholders' equity in the regulatory capital.E) None of the above
F) A) and B)

Question 6

Which of the following financial institutions does NOT accept deposits?

Accepted Answer

A)  Finance company
B)  Credit union
C)  Building society
D)  Commercial bankE) None of the above
F) A) and D)

Question 7

The CUFSS:

Accepted Answer

A)  is the regulator of credit unions.
B)  is an organisation that provides support to credit unions in financial distress.
C)  is the association that defends the interests of the credit unions when negotiating with the government or the regulator.
D)  is the registry of all members of the Australian credit unions.E) B) and C)
F) C) and D)

Question 8

Captive sales finance companies are finance companies that:

Accepted Answer

A)  obtain their funds in large amounts and lend in small amounts.
B)  finance goods sold by their parent companies.
C)  specialise in a particular type of finance products.
D)  target individuals with excessive levels of personal debt.E) A) and C)
F) All of the above

Exam 15: Nonbank Financial Institutions

Building societies have no comparative advantage over banks in terms of regulation.

Correct Answer
verified

Captive sales finance companies are finance companies that:

Correct Answer
verified

Which of the following financial institutions does NOT accept deposits?

Correct Answer
verified

Credit unions:

Correct Answer
verified

The CUFSS:

Correct Answer
verified

Payday lenders are finance companies that:

Correct Answer
verified

Building societies have been able to attract funding from shareholders by becoming corporations.

Correct Answer
verified

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.

Correct Answer
verified

Exam 15: Nonbank Financial Institutions

Building societies have no comparative advantage over banks in terms of regulation.

Correct AnswerverifiedShow Answer

Captive sales finance companies are finance companies that:

Correct AnswerverifiedShow Answer

Which of the following financial institutions does NOT accept deposits?

Correct AnswerverifiedShow Answer

Credit unions:

Correct AnswerverifiedShow Answer

The CUFSS:

Correct AnswerverifiedShow Answer

Payday lenders are finance companies that:

Correct AnswerverifiedShow Answer

Building societies have been able to attract funding from shareholders by becoming corporations.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified