4.1 How the media treat financial matters

Question 1

What is the argument for and against the media’s relationship with the financial system?

Answer 1

• Media reporting may damage confidence in providers by highlighting their faults
• It safeguards financial stability by pointing out weaknesses and information the public

Question 2

What is included in broadcast media?

Answer 2

• Television

- Radio

Question 3

What is included in print media?

Answer 3

• Newspapers

- Journals

Question 4

How can people form a balanced opinion?

Answer 4

By gathering various perspectives through different medias

Question 5

The stance that a media source will take will depend on what?

Answer 5

• Political, economic or social agenda

- Characteristics of its target audience

Question 6

Who is the financial press aimed at?

Answer 6

The financially literate and industry practitioners

Question 7

Features of the financial press:

Answer 7

• Factual
• Presents facts supported by data and makes predictions about consequences
• Conservative (does not question underlying financial model)
• Considers overall impact rather than how individuals may be affected

Question 8

Examples of the broadsheet press:

Answer 8

• The Times

- The Telegraph

Question 9

Features of the broadsheet press:

Answer 9

• In-depth coverage with a serious tone

- Has a political agenda

Question 10

What are the two types of financial articles by the broadsheet press?

Answer 10

• Macroeconomic reporting of company results, share prices and industrial news
• Personal finance articles aimed at people earning higher incomes

Question 11

What type of stories to the middle-market press run?

Answer 11

Stories that are shorter and less technical than those of the financials and the broadsheets, but longer, more complex and less sensational than those of the red-top tabloids

Question 12

Examples of the middle-market press:

Answer 12

• Daily Mail

- Daily Express

Question 13

Why are the tabloid press referred to as ‘red-tops’?

Answer 13

Because of their red title logos

Question 14

Examples of red-tops:

Answer 14

• The Sun

- Daily Mirror

Question 15

Features of red-tops:

Answer 15

• Stories are short, use a chatty writing style
• Conservative in their views but have been waging media war over high salaries and bonuses paid to top bankers (known as ‘fat cats’)

Question 16

Hierarchy amongst newspapers in terms of the level of financial literacy that they expect of their readership:

Answer 16

• Financial press
• Broadsheet press
• Middle-market press
• Tabloid press

Question 17

What did the Financial Times’ story about rivalry between UBS and Credit Suisse look at?

Answer 17

The different experiences of the two banks during the financial crisis and possibilities for their future

Question 18

Examples of finance magazines:

Answer 18

• Moneywise

- Money Observer

Question 19

Example of a financial magazine that has a free website:

Answer 19

MoneyWeek

Question 20

Examples of 24-hour news channels for particular countries:

Answer 20

• Al Jazeera in Qatar

- CNN in the USA

Question 21

How does BBC Radio 4 describe itself?

Answer 21

As a ‘speech-based news, current affairs and factual network’

Question 22

Radio 4 features Money Box which does what?

Answer 22

Offers advice on a wide range of personal finance issues

Question 23

Advantage of blogging:

Answer 23

You can respond to views expressed and so enter a discussion

Question 24

Think tank definition

Answer 24

A specialist body set up to think about and report on issues within a chosen area

Question 25

What is the Resolution Foundation?

Answer 25

A think tank that aims to ‘improve the living standards of those in Britain on low and middle incomes’

Question 26

Who is the Resolution Foundation funded by?

Answer 26

The Resolution Trust and is supported by:

• Barrow Cadbury Trust
• Nationwide Foundation
• Thames Valley Housing
• Unbound Philanthropy

Question 27

The Centre for Social Justice’s report ‘Maxed out: Serious personal debt in Britain’ has found out what?

Answer 27

• Average UK household has debts of £54,000
• Poorest 10% of households have average debts equal to four times their annual income and average monthly debt repayments are almost half of their gross monthly salary