FPC1 Practice Exam questions with
verified answers graded A+
Financial intermediaries perform a critical role in the financial system by - correct
answer ✔✔facilitating the flow of funds through the financial system
A period of persistent AUD weakness may raise monetary policy concerns for the
Reserve Bank of Australia because: - correct answer ✔✔the higher cost of imports
may flow through to rising domestic inflation
definition of a 'deep market' is: - correct answer ✔✔many buyers and sellers, high
liquidity
What is the definition of a recession? - correct answer ✔✔two consecutive
quarters of negative growth in gross domestic product (GDP)
What shifts the demand and supply curves for a consumer good? - correct answer
✔✔- a change in consumer preferences for the good
- a change in consumer incomes
- the development of a technology that changes production costs
If interest rates (RBA Cash Rate) decrease.
How would Australian share prices most likely change? - correct answer ✔✔The
All Ordinaries Index may go up, down or remain steady depending on
, how investors weigh the relative importance of the global uncertainty
surrounding lower interest rates
The prerequiste for a financial adviser providing a statement of advice to a client is
that the: - correct answer ✔✔- adviser holds a financial services licence or
represents a licensee
- advice is personal financial product advice
If ASIC forms the view that an individual has contravened the insider trading
provisions of the Corporations Act 2001 (Cth), what actions may it take against
that individual? - correct answer ✔✔criminal action and civil action
Which of the following are the main components of an interest rate? - correct
answer ✔✔- real component
- an inflation compensation
- a risk premium
- a monetary policy component
The external dispute resolution schemes from 1 November 2018 - correct answer
✔✔AFCA will be financed by member organisation contributions and have higher
monetary limits.
Functions of the RBA - correct answer ✔✔- managing Australia's foreign currency
reserves
- making monetary policy decisions
- maintaining financial system stability
verified answers graded A+
Financial intermediaries perform a critical role in the financial system by - correct
answer ✔✔facilitating the flow of funds through the financial system
A period of persistent AUD weakness may raise monetary policy concerns for the
Reserve Bank of Australia because: - correct answer ✔✔the higher cost of imports
may flow through to rising domestic inflation
definition of a 'deep market' is: - correct answer ✔✔many buyers and sellers, high
liquidity
What is the definition of a recession? - correct answer ✔✔two consecutive
quarters of negative growth in gross domestic product (GDP)
What shifts the demand and supply curves for a consumer good? - correct answer
✔✔- a change in consumer preferences for the good
- a change in consumer incomes
- the development of a technology that changes production costs
If interest rates (RBA Cash Rate) decrease.
How would Australian share prices most likely change? - correct answer ✔✔The
All Ordinaries Index may go up, down or remain steady depending on
, how investors weigh the relative importance of the global uncertainty
surrounding lower interest rates
The prerequiste for a financial adviser providing a statement of advice to a client is
that the: - correct answer ✔✔- adviser holds a financial services licence or
represents a licensee
- advice is personal financial product advice
If ASIC forms the view that an individual has contravened the insider trading
provisions of the Corporations Act 2001 (Cth), what actions may it take against
that individual? - correct answer ✔✔criminal action and civil action
Which of the following are the main components of an interest rate? - correct
answer ✔✔- real component
- an inflation compensation
- a risk premium
- a monetary policy component
The external dispute resolution schemes from 1 November 2018 - correct answer
✔✔AFCA will be financed by member organisation contributions and have higher
monetary limits.
Functions of the RBA - correct answer ✔✔- managing Australia's foreign currency
reserves
- making monetary policy decisions
- maintaining financial system stability
