Davidson; Management - 3rd Australasian Edition



1.
Building societies funds long-term residential mortgages with short-term consumer savings deposits
A. True
B. False


2.
Building societies diversified their product base to a full range of products such as deposit accounts, credit cards, investment savings accounts, mortgages, business loans and Internet banking services.
A. True
B. False


3.
The major class of assets for building societies is loans and advances.
A. True
B. False


4.
Interest bearing securities is the most significant source of funding for building societies.
A. True
B. False


5.
Building societies are very vulnerable to interest rate changes.
A. True
B. False


6.
Credit unions were originally organized with the idea that members could pool their funds together and make low-cost loans to themselves as a group.
A. True
B. False


7.
Credit unions carry the same level of capital as major banks.
A. True
B. False


8.
Similar to commercial banks, credit unions capital consists of shareholders' equity are exempt from federal income tax on income from financial assets.
A. True
B. False


9.
Finance companies primary source of funding is deposits.
A. True
B. False


10.
Floor-planning-financing involves financing of inventory available for sale for retailers of large-cost, low-volume items such as motor vehicles.
A. True
B. False


11.
Finance companies are highly leveraged institutions.
A. True
B. False


12.
Most business credit extended by finance companies is unsecured.
A. True
B. False


13.
Like deposit taking institutions, finance companies are regulated by Australian Prudential Regulation Authority (APRA).
A. True
B. False


14.
Credit unions are owned by major stockholders.
A. True
B. False


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