Question 1

Eligible termination payments can be rolled over into an eligible rollover fund but not into a deferred annuity.

Accepted Answer

A) True 
 B)False

Question 2

A common definition used by superannuation funds for a member's entitlements upon retirement is:

Accepted Answer

A)  final salary × percentage return on the fund last year. 
B)  number of years of membership × percentage return on the fund last year. 
C)  multiple × final salary × number of years of membership. 
D)  tax rate × final salary. 
A)  final salary × percentage return on the fund last year. 
B)  number of years of membership × percentage return on the fund last year. 
C)  multiple × final salary × number of years of membership. 
D)  tax rate × final salary.

Question 3

Studies of fund performance show:

Accepted Answer

A)  no fund has ever outperformed the market. 
B)  it is very difficult to find funds that consistently outperform the market. 
C)  every managed fund has outperformed the market at one stage or another. 
D)  fixed- interest funds have consistently outperformed fund equity funds. 
A)  no fund has ever outperformed the market. 
B)  it is very difficult to find funds that consistently outperform the market. 
C)  every managed fund has outperformed the market at one stage or another. 
D)  fixed- interest funds have consistently outperformed fund equity funds.

Question 4

A master trust allows investors to choose between a range of managed funds.

Accepted Answer

A) True 
 B)False

Question 5

Mananged funds allow investors to have their assets managed and protected by professional fund managers.

Accepted Answer

A) True 
 B)False

Question 6

The income earned by superannuation funds is generally taxed at the concessional rate of only 15%.

Accepted Answer

A) True 
 B)False

Question 7

The category of fund in which most trusts are listed on the stock exchange, rather than unlisted, is____________ trusts.

Accepted Answer

A)  property 
B)  cash 
C)  equity 
D)  mortgage 
A)  property 
B)  cash 
C)  equity 
D)  mortgage

Question 8

An investor who wants to track a market index should put their money in a(n) fund.

Accepted Answer

A)  value 
B)  capital secure 
C)  growth 
D)  indexed 
A)  value 
B)  capital secure 
C)  growth 
D)  indexed

Question 9

A beta below unity shows that the return on a fund is more volatile than the market average.

Accepted Answer

A) True 
 B)False

Question 10

'Short- termism' refers to the observation that Australian fund managers tend to stay in their position for only a brief period before moving on.

Accepted Answer

A) True 
 B)False

Question 11

Since 1 July 1998 superannuation funds have been regulated by the Reserve Bank.

Accepted Answer

A) True 
 B)False

Question 12

Explain the concept of hedge funds and critically evaluate their role.

Accepted Answer

Hedge funds are investment funds that po

Question 13

DIY superannuation funds are also called self- managed superannuation funds (SMSFs).

Accepted Answer

A) True 
 B)False

Question 14

The maximum size limit on retirement savings accounts (RSAs) is $10,000.

Accepted Answer

A) True 
 B)False

Question 15

Superannuation funds are regulated by the:

Accepted Answer

A)  Reserve Bank. 
B)  Australian Competition and Consumer Commission. 
C)  Australian Securities and Investments Commission. 
D)  Australian Prudential Regulation Authority. 
A)  Reserve Bank. 
B)  Australian Competition and Consumer Commission. 
C)  Australian Securities and Investments Commission. 
D)  Australian Prudential Regulation Authority.

Question 16

Investment through managed investments allows investors to save on costs of information and record keeping.

Accepted Answer

A) True 
 B)False

Question 17

Attribution analysis aims to determine the contribution of various decisions to a fund's performance.

Accepted Answer

A) True 
 B)False

Question 18

Funds into which superannuation lump sums and eligible termination payments can be rolled in order to preserve their tax status are known as ____________funds.

Accepted Answer

A)  approved deposit 
B)  capital diversified 
C)  ethical investment 
D)  fixed- rate 
A)  approved deposit 
B)  capital diversified 
C)  ethical investment 
D)  fixed- rate

Question 19

An example of the 'principal- agent problem' is fund managers not paying sufficient attention to questions of corporate governance.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements about unit trusts is NOT true?

Accepted Answer

A)  Capital- guaranteed funds ensure investors receive their original investment back. 
B)  Property trusts invest in retail, commercial and industrial property. 
C)  Unit trusts can be listed on the stock exchange. 
D)  A unit trust prospectus is registered with APRA. 
A)  Capital- guaranteed funds ensure investors receive their original investment back. 
B)  Property trusts invest in retail, commercial and industrial property. 
C)  Unit trusts can be listed on the stock exchange. 
D)  A unit trust prospectus is registered with APRA.

Eligible termination payments can be rolled over into an eligible rollover fund but not into a deferred annuity.

A common definition used by superannuation funds for a member's entitlements upon retirement is:

Studies of fund performance show:

A master trust allows investors to choose between a range of managed funds.

Mananged funds allow investors to have their assets managed and protected by professional fund managers.

The income earned by superannuation funds is generally taxed at the concessional rate of only 15%.

The category of fund in which most trusts are listed on the stock exchange, rather than unlisted, is____________ trusts.

An investor who wants to track a market index should put their money in a(n) fund.

A beta below unity shows that the return on a fund is more volatile than the market average.

'Short- termism' refers to the observation that Australian fund managers tend to stay in their position for only a brief period before moving on.

Since 1 July 1998 superannuation funds have been regulated by the Reserve Bank.

Explain the concept of hedge funds and critically evaluate their role.

DIY superannuation funds are also called self- managed superannuation funds (SMSFs).

The maximum size limit on retirement savings accounts (RSAs) is $10,000.

Superannuation funds are regulated by the:

Investment through managed investments allows investors to save on costs of information and record keeping.

Attribution analysis aims to determine the contribution of various decisions to a fund's performance.

Funds into which superannuation lump sums and eligible termination payments can be rolled in order to preserve their tax status are known as ____________funds.

An example of the 'principal- agent problem' is fund managers not paying sufficient attention to questions of corporate governance.

Which of the following statements about unit trusts is NOT true?

Financial Markets

Debt Securities and Markets

Introduction to Financial Calculations

Banks and Other Deposit Taking Institutions

The Payments System

Interest Rates, the Yield Curve and Monetary Policy

The Foreign Exchange Market

Listed Securities

Fixed Rate Derivatives

Options

Global Financial Crisis

Managing Foreign Exchange Risk

Managing Interest Rate Risk

Filters

Exam 6: Managed and Superannuation Funds

Eligible termination payments can be rolled over into an eligible rollover fund but not into a deferred annuity.

A common definition used by superannuation funds for a member's entitlements upon retirement is:

Studies of fund performance show:

A master trust allows investors to choose between a range of managed funds.

Mananged funds allow investors to have their assets managed and protected by professional fund managers.

The income earned by superannuation funds is generally taxed at the concessional rate of only 15%.

The category of fund in which most trusts are listed on the stock exchange, rather than unlisted, is____________ trusts.

An investor who wants to track a market index should put their money in a(n) fund.

A beta below unity shows that the return on a fund is more volatile than the market average.

'Short- termism' refers to the observation that Australian fund managers tend to stay in their position for only a brief period before moving on.

Since 1 July 1998 superannuation funds have been regulated by the Reserve Bank.

Explain the concept of hedge funds and critically evaluate their role.

DIY superannuation funds are also called self- managed superannuation funds (SMSFs).

The maximum size limit on retirement savings accounts (RSAs) is $10,000.

Superannuation funds are regulated by the:

Investment through managed investments allows investors to save on costs of information and record keeping.

Attribution analysis aims to determine the contribution of various decisions to a fund's performance.

Funds into which superannuation lump sums and eligible termination payments can be rolled in order to preserve their tax status are known as ____________funds.

An example of the 'principal- agent problem' is fund managers not paying sufficient attention to questions of corporate governance.

Which of the following statements about unit trusts is NOT true?

Financial Markets

Debt Securities and Markets

Introduction to Financial Calculations

Banks and Other Deposit Taking Institutions

The Payments System

Interest Rates, the Yield Curve and Monetary Policy

The Foreign Exchange Market

Listed Securities

Fixed Rate Derivatives

Options

Global Financial Crisis

Managing Foreign Exchange Risk

Managing Interest Rate Risk

Filters