Question
FMI test 1 question paper has been completed and will be given to you on Monday, 17th March, i.e. Monday of week 6, during regular lecture time so you have exactly two weeks to prepare for it. Test tips are provided below:
FMI Test 1 Tips
Test 1 covers topics 1.1, 1.2 & 1.3 (Textbook chapters 1, 2, & 3)
There are only 2 parts to the test:
Part 1: 25 Multiple Choice questions (worth 1 mark each) totalling 25 marks
8 questions from topics 1.1, 9 questions from topic 1.2, and 8 questions from topic 1.3
Part 2: 3 x short answer/Essay questions (worth various marks) totalling 15 marks
Q1: from Topic 1.1:
1) Why is the existence of well-developed secondary markets important to the functioning of the primary markets within the financial system? (4 marks)
Q 2: from topic 1.2:
2) The off-balance-sheet business of commercial banks has expanded significantly and, in notional value terms, now represents over five times the value of balance-sheet assets.
(a) Define what is meant by the off-balance-sheet business of commercial banks, and,
(b) Identify the four main categories of off-balance-sheet business and use an example to explain each category. (6 marks)
Q3: from topic 1.3:
Advising corporate clients on mergers and acquisitions (M&A)—in which one company gains control over another—is a significant fee-generating service provided by investment banks. In the context of M&A, explain the differences between horizontal takeover, vertical takeover, and conglomerate takeover. (5 marks)
Note
1. Answers to the short essay questions should be no less than half a page and no more than one page.
2. I am not assigning any specific tutorial questions for test 1 because specific tutorial questions are normally assigned for problems/calculations type of questions and there are no problems/calculations questions in Test 1. Problems/calculations questions will definitely appear in test 2, (i.e. mid semester exam) and the final exam.
Explain what point number 2 in the note mean?
FMI Test 1 Tips
Test 1 covers topics 1.1, 1.2 & 1.3 (Textbook chapters 1, 2, & 3)
There are only 2 parts to the test:
Part 1: 25 Multiple Choice questions (worth 1 mark each) totalling 25 marks
8 questions from topics 1.1, 9 questions from topic 1.2, and 8 questions from topic 1.3
Part 2: 3 x short answer/Essay questions (worth various marks) totalling 15 marks
Q1: from Topic 1.1:
1) Why is the existence of well-developed secondary markets important to the functioning of the primary markets within the financial system? (4 marks)
Q 2: from topic 1.2:
2) The off-balance-sheet business of commercial banks has expanded significantly and, in notional value terms, now represents over five times the value of balance-sheet assets.
(a) Define what is meant by the off-balance-sheet business of commercial banks, and,
(b) Identify the four main categories of off-balance-sheet business and use an example to explain each category. (6 marks)
Q3: from topic 1.3:
Advising corporate clients on mergers and acquisitions (M&A)—in which one company gains control over another—is a significant fee-generating service provided by investment banks. In the context of M&A, explain the differences between horizontal takeover, vertical takeover, and conglomerate takeover. (5 marks)
Note
1. Answers to the short essay questions should be no less than half a page and no more than one page.
2. I am not assigning any specific tutorial questions for test 1 because specific tutorial questions are normally assigned for problems/calculations type of questions and there are no problems/calculations questions in Test 1. Problems/calculations questions will definitely appear in test 2, (i.e. mid semester exam) and the final exam.
Explain what point number 2 in the note mean?
Answers
GPT-4o mini
Point number 2 in the note means that there will not be any specific tutorial questions assigned for Test 1 because this particular test does not include problem or calculation-based questions. Instead, it focuses solely on multiple-choice questions and short answer/essay questions that require explanation and conceptual understanding.
The note also indicates that tutorial questions are typically used to help students practice and understand problem-solving and calculation-type questions, which are expected to appear in future assessments such as Test 2 (the mid-semester exam) and the final exam. Therefore, the instruction suggests that while you won't have specific practice problems for Test 1, there will be opportunities for problem-solving practice in subsequent tests.
The note also indicates that tutorial questions are typically used to help students practice and understand problem-solving and calculation-type questions, which are expected to appear in future assessments such as Test 2 (the mid-semester exam) and the final exam. Therefore, the instruction suggests that while you won't have specific practice problems for Test 1, there will be opportunities for problem-solving practice in subsequent tests.