- Choose the correct answer:(a) While pass-throughs and CMOs remain on banks and building societies balance sheets, mortgage-backed bonds (MBBs) remove mortgages from balance sheets as forms of off-balance-sheet securitisation.(b) While pass-throughs and CMOs help banks and building societies remove mortgages from their balance sheets as forms of off-balance-sheet securitisation, mortgage-backed bonds (MBBs) normally remain on the balance sheet.(c) Pass-throughs and CMOs are the same as mortgage-backed bonds (MBBs).(d) Pass-throughs are normally issued with multiple tranches whereas CMOS are only isssud in one tranche.
- The ___________ is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired:(a) B Class(b) Z Class(c) R Class(d) A Class
- The supervision of an FI s liquidity management is undertaken by the:APRARBAACCCASIC
- Which of the following statements is true?(a) None of the listed options are correct.(b) Borrower-specific factors are factors that affect all borrowers operating in the same industry.(c) Market-specific factors are factors that are idiosyncratic factors arising from the market that affects single or a small number of borrowers.(d) Market-specific factors carry a higher weight compared to borrower-specific factors when deciding on whether to accept or to reject a loan application.
- Besides reducing credit risks, an FI has an incentive to sell loans it originates for all of the following reasons except to:(a) lower reserve requirements(b) decrease core deposits(c) lower capital requirements(d) geographically diversify
- As coupon rates on new mortgages fall:(a) there is a decreased incentive for individuals in the pool to pay off old, high-cost mortgages and refinance at lower rates(b) there is an increased incentive for individuals in the pool to pay off old, high-cost mortgages and refinance at lower rates(c) there is no effect on mortgage payments(d) individuals are inclined to sell off their mortgages
- This propensity to prepay means:(a) realised coupons/cash flows on pass-through securities would conform to expected cash flows(b) realised coupons/cash flows on pass-through securities can often deviate substantially from the stated or expected coupon flows(c) realised coupons/cash flows on pass-through securities are prepaid(d) None of the listed options are correct.
- the auditor is employed by and reports to the shareholders and NOT
- who administers the corporations act (2001)
- prepayments is considered to be an __ transaction
- how many types of auditor opinions are there?
- what is the golden rule for double entry accounting
- who provides assurance on the accuracy of financial statements
- any transaction that increases assets we record as a
- retained profits is Essentailly a summary of what financial statement
- Current assets are recorded on the balance sheet in order of :
- any transaction that increases liabilities or equity we record as a
- suppliers providing goods on credit is an example of past transactions that lead to
- accumulated depreciation is what type of asset?
- The link between the income statement and the balance sheet is through: