Financial Markets & Regulation

One bond investor selling to another bond investor involves a transaction in the:

• 1. share market

• 1. secondary market

• 1. primary market

• foreign exchange market

Superannuation is a financial product provided in which financial market?

• Share market

• Derivatives market

• Savings market

• Financial services market

Which of the following best describes movements in the share market?

• 1. Stable, constant rises

• Short-term volatility, long-term plateau

• 2. Long-term volatility, short-term volatility

• 2. Short-term volatility, long-term gains

Which of the following best describes the relationship between Australian and global financial markets?

• 1. Interdependent

• 2. Mutually exclusive

• 2. Separate

• 1. Synchronised

Which of the following is NOT a reason for regulation of financial markets?

• 1. Complexity

• 2. Value of transactions

• 2. Herd behaviour

• 2. Transactions are between private actors

Which of the following regulators would be responsible for providing liquidity to banks in the event of a financial crisis?

• 1. APRA

• 2. RBA

• 2. CFR

• 1. ASIC

Which regulator would investigate fraud relating to the stock market?

• 1. ASIC

• 1. RBA

• 1. APRA

• CFR

Which regulatory body is responsible for advising the Treasurer on financial issues?

• 1. The NSW Treasury

• 1. The Commonwealth Treasury

• 1. The RBA

• 1. The CFR

The Council of Financial Regulators is:

• 1. made up of five regulatory bodies.

• the final decision-maker on financial reforms.

• 2. responsible for implementing new financial laws.

• a non-statutory body.

Which of the following is NOT an official objective of the Reserve Bank of Australia?

• 1. The stability of the Australian currency.

• 2. The maintenance of full employment.

• 2. The economic prosperity and welfare of Australians.

• An equitable distribution of income.