CHAPTER 2

What are APRA's responsible for?

• for market integrity or consumer protection across the financial system

• monetary policy, overall stability of the financial system and regulation of the payments system.

• prudential supervision of banks, building societies, life & general insurance, companies and superannuation funds

What does NCA stand for?

in what ways does the ACCC influence the way the bank operates?

• Price monitoring

• issuing enforceable direction and revoking of licenses.

• prohibits anti-competitive behavior

• prohibits unfair business practices

Which of these authorities manages the protection of money laundering?

• ASX

• AUSTRAC

• ACCC

True or false - Consequentialism is where there are inviolable moral rules that do not change depending on the situation

• FALSE

• TRUE

Answer explanation

Utilitarianism is an ethical philosophy stating that aggregate welfare or “good” should be maximized and that suffering or “bad” should be minimized.

What is the correct 5 step process for ethical dilemmas?

• Recognise and define, potential actions, discuss with others, implementation, review

• Review, recognise and define, potential actions, discuss with others, implementation

• Recognise and define, discuss with others, potential actions, implementation, review

Which of these influences may threaten professionalism?

• Self-review

• Familiarity

• Intimidation

• Advocacy

The Australian Securities and Investment Commission decides to increase the disclose

requirements for Initial Public Offerings (IPO). The decision is expected significantly add to

the complexity and time taken for prospectus preparation. Which of the following is the most

likely consequence of this change in regulation?

• Decrease in debt capital raisings.

• No impact on the flow of funds.

• Decrease in share capital raisings.

• Increase in share capital raisings.

Which of the following statements is NOT correct?

• Credit unions

  and building societies are supervised by APRA

• Credit unions are not allowed to accept deposits from retail investors

• Finance companies are not allowed to

  accept deposits

• Finance companies are supervised by ASIC

How does valuation help the buyer of a financial product decide on the price of the

financial product?

• Valuation provides a price ceiling for the buyer.

• Valuation provides a price floor for the seller

• Valuation provides a price floor for the buyer.

• None of the above