Chapter 5: Other markets & Investments Flashcards
1
Q
What is the maximum amount of compensation per person that would be payable by the FSCS in the event of default ?
A
£85k per person per institution.
2
Q
Economic Theory holds that money should serve which 3 functions ?
A
- A store of value
- A medium of exchange
- A unit to measure the price of something on sale
3
Q
How is the return on a treasury bill achieved ?
A
They are typically ZCB issued at discount to nominal value and will receive the difference paid and redemption price
4
Q
What are the advantages and disadvantages of investing in property ?
A
Advantages: Each property is unique
Disadvantages: Valuation is subjective, no price data readily available, diversification is lacked, supply of land is finite, illiquid and cannot sell half or partial.
5
Q
When will spot fx transactions settle ?
A
T+2
