Depository Institutions Are Required by APRA to Be Responsible For

question 53

Multiple Choice

Depository institutions are required by APRA to be responsible for:

• A)their own liquidity management strategy that must include scenario analysis
• B)their own capital management strategy that must include risk analysis
• C)both their own liquidity, capital management strategies and a business continuity plan
• D)None of the listed options are correct.APRA is responsible for the supervision and oversight of all depository institutions.

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Definitions:

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit, where marginal revenue equals marginal cost.

Five Forces Model

A framework developed by Michael E. Porter used to analyze an industry's competitive forces and to shape organization’s strategy accordingly.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market, potentially leading to limited competition and higher prices for consumers.

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total quantity of the good that all consumers in the market are willing to purchase at that price.