Westpac is Australia's first bank and oldest company, one of four major banking organizations in Australia and one of the largest banks in New Zealand. Established in 1817 as the Bank of New South Wales, the company changed its question.

 

State one (1) reason why external stakeholders might carry out an analysis of Westpac's financial statements

 

As one of the biggest 20 publicly traded companies in Australia, why should Westpac negotiate trade credit with its suppliers? List three (3) benefits of trade credit

Westpac ordinary shares are traded in the secondary market. Distinguish between a primary and a secondary market

 Banks such as Westpac contribute to inflation in the Australian economy through "money creation". Define what inflation is (0.5 mark) and explain any two (2) costs of inflation

 

Westpac's Income from Interest on loans, credit cards, mortgages etc. is impacted by unemployment in the Australian economy. However, the impacts of unemployment are far-reaching. 

Define unemployment (0.5 mark) and explain any two (2) costs of unemployment to the Australian economy

 

The Reserve Bank of Australia (RBA) — within its main roles — acts as a lender of last resort to support Australian banks like Westpac from getting into financial difficulties to avert any financial disruption/crisis. Explain three (3) other functions of the RBA