FIN10003 Review Questions Questions What is super? Who pays super? What is risk and return? What is the investment cycle? How do you become a financial adviser? What are short term, medium and long term goals? How does Market Volatility effect asset values? Calculate currency exchange rates Can stockbrokers provide advice? Why would increased life expectancy create an opportunity for Financial Advisers? Draw the supply ff demand chart and explain it What is GDP? What does monetary policy impact? What is fiscal policy ff how does it work? Using fiscal policy, how can the economy be stimulated? Using fiscal policy, how can the economy be contracted? What is net cashflow? What is preferred, positive number or negative number? What is included in a personal balance sheet? What is included in a personal cashflow statement? What is the equity ratio? What is the liquidity ratio? What is the savings ratio? What is the debt service ratio? What do you need to consider when making an investment decision? (Risk, Return, Time) Future Value Calculations (Compounding Frequency) Present Value Calculations (Compounding Frequency) What is the effective interest rate ff how is it different from the nominal interest rate? What is the real rate of return? Looking at GDP, what happens when unemployment increases? Why would this decrease economic growth? What happens when the RBA lowers interest rates? What is the Cash Rate? Is this the rate that the RBA charges banks for a loan? Page 1 of 2
FIN10003 Review Questions What happens in a recession? Can financial advisers provide financial advice? What happened with Collateralised Debt Obligations and the 2007 global financial crisis? Who are ASIC and what do they do? What is a retail client? What is a wholesale client? Why is sharing "your" opinion about a specific stock technically considered financial product advice? What is conflicted remuneration? What is Personal Advice? What is General Advice? What does consumer law govern? Why do we need this? What are the Safe Harbour Steps? What are they designed to achieve? What is the difference between: - Statement of Advice - Product Disclosure Statement - Fee Disclosure Statement - Product Disclosure Statement Why would refinancing debt not be found within the scope of advice (what is an adviser licenced to do?) What is a non-aligned business model? Are they more likely to provide independent and unbiased advice? When providing financial advice, who should receive a statement of advice? Page 2 of 2