QUESTION 17

Which of the following operations doesNOTcreate bank deposits?

1. A.A bank pays the rent to a customer who is not an ADI.
2. B.A bank makes a loan to aborrower who is not an ADI.
3. C.A bank buys a security issued by acompany that is not an ADI.
4. D.A bank pays interest to a customerwhois not an ADI.
5. E.All transactions above create bank deposits.

QUESTION 18

The payment of dividends by Telstra, a telecommunication company,______________________.

1. A.decreases Telstra'saccumulatedretained profits
2. B.decreases the shares on issue.
3. C.decreases equity in Telstra shareholder'sbalance sheet.
4. D.increases Telstra's bank deposits.
5. E.increases the shares issued by Telstra.

QUESTION 19

Consider the following transactions occurring during a fortnight. Juliette's wage for her casual job is $700;her parents give her an allowance of $100; she pays a rent of $250 with a bank account transfer; her grocery bill paid with her debit card is $100; the interest on her savings account is $50; she buys an ironing table for $70 with her debit card.

Which statement isNOTcorrect?

1. A.Her total income for that fortnight is $850.
2. B.Her equity increases in net by $500 during that fortnight.
3. C.Her debt does not change during that fortnight.
4. D.Her current savings for that fortnight is $50.
5. E.Her expenses for that fortnight are $350