Suppose You Bought One NAB Share for $28

question 17

Multiple Choice

Suppose you bought one NAB share for $28.38 on 1 July and then sold it for $27.57 on 1 August.On 25 July,you received a dividend of $1.47 on the share.What has been your rate of return over the holding period?

• A)2.4%
• B)8.0%
• C)8.3%
• D)2.3%

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Definitions:

Check Clearing

The process by which money is transferred from the checking accounts of the writers of checks to the checking accounts of the recipients of the checks.

Insuring Bank Deposits

A government or independent institution's act of providing a guarantee to bank depositors that their deposits will be protected up to a certain limit in the event of a bank failure.

Time Deposits

Time Deposits are savings accounts or certificates of deposit (CDs) that lock the depositor's funds for a certain period of time, during which early withdrawal incurs penalties.

Reserve Requirements

The portion of depositors' balances that banks must have on hand as cash, mandated by central banking authorities.