Chapter 1 - The UK financial services industry: an overview

Question 1

What are the four key components within the financial sector?

Answer 1

1) financial infrastructure
2) financial markets i
3) financial firms
4) the financial sector authorities

Question 2

What is the capital markets two key objectives?

Answer 2

1) For investors to be able to invest in assets that provide the potential for real growth.
2) allows companies to raise money without necessarily having to borrow it from bank.

Question 3

What is quantitative easing?

Answer 3

The introduction of new money into the money supply by a central bank.