Question 1

Provide a brief overview of Australia's financial markets in terms of the financial functions they perform.

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Question 2

Explain how the flow-of-funds function and risk-transfer function were impaired during the GFC.

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Question 3

Explain the six functions performed by the financial system.

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Question 4

Provide a brief overview of the GFC.

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Question 5

Briefly outline the main functions of the RBA.

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Question 6

Explain the risk transfer function, carefully describing the main categories of risk.

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Question 7

Explain the two main forms of finance (debt and equity).

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Question 8

The GFC is sometimes referred to as a 'crisis of confidence'.Explain the role of confidence leading up to and during the crisis.

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Question 9

What role did incentive problems play in the GFC?

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Question 10

Outline the differences between debt and equity as forms of finance.

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Question 11

Explain the flaws in 'sub-prime' lending in the US and how it contributed to the GFC.

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Question 12

Describe the institutions and markets within Australia's financial system.

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Question 13

What is an ADI? What services do they provide?

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Question 14

Identify and briefly describe the 'non-bank' financial institutions.

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Question 15

Briefly explain three consequences of the GFC on Australia.

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Quiz 1: Overview of the Financial System

Provide a brief overview of Australia's financial markets in terms of the financial functions they perform.