stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Financial Trade Flows Flashcards | StudBud
Explore
/
Financial Trade Flows
Financial Trade Flows
19 terms
·
StudBud Administration
·
6 plays
Imported from external platform
Flashcards
19 cards
F
Practice quiz
P
Host live
L
Questions
19
Answers
1
What technological advancements have helped portfolio investment grow?
Faster internet
Smartphone trading apps
More stockbrokers
More financial news on TV
2
Why does Australia have high levels of foreign direct investment (FDI)?
Plentiful investment opportunities
Government grants
High savings levels
Foreign investment is illegal
3
What is portfolio investment?
Owning a home
Buying stocks
Long-term loans
Speculative investment
4
How much did Australia’s investments overseas grow between 2016 and 2020?
$1 trillion
$4 trillion
$2.3 to $3 trillion
$3 trillion
5
How has Australia's net foreign equity position changed between 2017 and 2021?
No significant change
Fell to -$200 billion
Improved from -$56.2B to -$395.5B
Grew from -$56.2B to -$395.5B
6
What is Australia's net foreign debt position in recent years?
$3 trillion surplus
$1.5 trillion
$1.1 to $1.2 trillion
$500 billion
7
Which of the following was part of financial deregulation?
Increased bank regulations
Reduced financial regulations
Floating the Aussie dollar
Raising tariffs
8
What was the impact of financial deregulation on financial inflows?
Increased by 1%
Rose from 3% to 9% of GDP
Dropped to 1% of GDP
No change
9
How much did portfolio investment grow from 1990 to 2020?
Doubled
Declined
Grew 13x
Tripled
10
What is a key takeaway from financial deregulation?
Less foreign investment
Higher taxes
Fewer two-way investments
Fewer financial flows
11
What was the impact of compulsory superannuation on financial flows?
No change in financial flows
Super made no impact
More money stayed in Australia
Boosted private savings
12
What is direct investment?
Buying a car
Buying over 10% of shares
Starting a company
Selling government bonds
13
How has financial literacy impacted portfolio investment?
Led to more trading
Increased risk in markets
Made no difference
Hurt foreign investors
14
Which two regions accounted for nearly half of all incoming FDI flows?
Japan & South Korea
China & India
USA & EU
Brazil & Canada
15
How has superannuation contributed to overseas investment?
Restricted business growth
Reduced overseas investment
Allowed capital to grow
Limited overseas investment
16
Why has portfolio investment increased over time?
More government intervention
Eased capital restrictions
More financial restrictions
Lack of financial knowledge
17
What does a negative net foreign equity position mean?
Australia is losing money
Foreigners own more assets in Australia
Australia owns more assets overseas
Australia is dependent on foreign capital
18
What has been a major factor in Australia's increasing investment overseas?
Compulsory superannuation
Lower interest rates
Rising government debt
Declining foreign investment
19
By 2015, which sector accounted for 40% of total direct investment in Australia?
Mining
Agriculture
Manufacturing
Retail
