INFLUENCES - LAST 3 DOT POINTS Flashcards
What is the role of banks in Australia?
Largest financial providers, hold deposits, supply cash, provide credit card and cheque account facilities.
Banks also have subsidiaries in superannuation and other funds and are supervised by the RBA.
What are investment banks primarily focused on?
Providing funds for large ventures and assisting companies in mergers and acquisitions.
They do not take deposits and primarily lend to the business sector.
What is the main function of finance companies?
Specialize in smaller commercial finance and serve as medium-short term lenders.
They raise funds by issuing debentures and can sell business assets to recover loans.
What are superannuation funds
These businesses are always looking for other businesses to invest in. …..Their job is to hold and invest funds for customers to use in their retirement. Able to invest in long-term securities because of their long-term nature.
They invest funds for customers to use in retirement and can invest in long-term securities.
What do life insurance companies provide?
Security for workers and employers, and loans to the corporate sector through insurance premiums.
They also provide protection and investment policies.
What are protection policies designed to do?
Provide a benefit in the event of a specified event, typically a lump sum payment.
These policies offer compensation for adverse events such as injury or death.
What is the objective of investment policies?
Facilitate the growth of capital by regular or single premiums.
What do unit trusts do?
Take funds from many small investors and invest them in specific financial assets.
They pass profits to owners rather than reinvesting in the fund.
What is the role of the Australian Securities Exchange (ASX)?
Acts as a primary market and secondary market for trading shares.
It oversees compliance, promotes corporate governance, and increases liquidity of financial assets.
True or False: Investment banks take deposits.
False
Fill in the blank: Finance companies raise funds by issuing _______ to the public.
debentures
What is the primary market function of the ASX?
Enables a company to raise new capital through the issue of shares.
What distinguishes superannuation funds from other financial institutions?
Their focus on holding and investing funds for customers’ retirement
What type of assets do unit trusts typically invest in?
Specific types of financial assets.
Common Asset Classes in Unit Trusts:
- Equities (Stocks) 📈
- Bonds (Fixed Income) 💵
- Property (Real Estate) 🏢
- Commodities ⛏️
