Final Exam Anwer of Finance

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TO BE RETURNED AT THE END OF THE EXAMINATION.

THIS PAPER MUST NOT BE REMOVED FROM THE EXAM CENTRE.

SURNAME:____________________________________

FIRST NAME:____________________________________

STUDENT NO:____________________________________

COURSE:____________________________________

25556 The Financial System

Special exam, spring semester, 2011

Time Allowed: 3 hours plus 10 minutes reading time.

Exam day and date:

1. Exam Paper: • Please ensure that your name and student number are at the top of this page. • There are three parts to this exam: Part A, Part B and Part C. All questions are compulsory. • This paper will be marked out of 50 marks. Part A: 15 (1-mark) multiple choice questions. Record your chosen answer to each question on the supplied computer card starting with Q1 Part B: Five (5-mark) questions. Write your answers in the spaces provided in this exam paper. Part C: 10-mark case study. Write your answer in the separate booklet. • Answers to calculation questions must be substantiated by showing your working. • This exam paper includes a formula sheet on the final page.

2. Exam Conditions: • Financial calculators and other non-programmable calculators are allowed. • Pencils may be used, but write clearly if you want your answers to be graded.

PART A: 15 MULTIPLE CHOICE QUESTIONS (15 MARKS)

1. Our study of “business angels” revealed they

a) are the main lenders to small business;

b) are security analysts who provide financial advice;

c) invest in non-government bonds;

d) are investors in the venture capital market;

e) are not described by all of the above.

2. Our study of Australia’s bond market revealed:

a) Stocks and bonds are the main securities traded in the bond market;

b) Treasury bonds pay coupons on the 8th of each coupon month;