Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A)Australian banks' decreased reliance on off-shore funding post GFC led to funding pressures and increased the costs of obtaining funds.
• B)Australian banks' increased reliance on off-shore funding post GFC led to funding pressures and increased the costs of funding.
• C)Australian banks reduced their reliance on on-shore funding in an effort to reduce the costs of funding and ease pressure on mortgage interest rates.
• D)Australian banks increased their reliance on on-shore funding post GFC which led to funding pressures and increased the costs of obtaining funds.

---

Definitions:

Standby Underwriting

A type of underwriting where the underwriter agrees to buy any remaining shares not sold in a public offering, ensuring the issuing company sells all shares.

Underwriting

The process by which insurers, lenders, or investment bankers evaluate and take on the financial risk of a client, based on an assessment of that client's risk profile.

Market Price

The ongoing market cost for the purchase or sale of a service or asset.

Net Present Values

Net Present Values is the plural form of Net Present Value, referring to the calculation that determines the sum of the present values of all future cash flows associated with an investment, less the initial investment cost.