Extra

Question 1

PEG appreciation

Answer 1

Hong Kong during Asian Financial Crisis 1990s sold foreign exchange reserves to buy HKD & sold USD

Question 2

Sterilised

Answer 2

2009 Bank of Japan purchased USD to weaken JPY for competitiveness.

Offset transaction by selling Japanese bonds to neutralise impact on money supply & inflation

Question 3

Open banking

Answer 3

Payment Services Directive 2 (PSD2) in the European Union (EU)

Question 4

P2P lending

Answer 4

Lending Club - 150bn transactions

Question 5

Financial Crisis Advanced

Answer 5

Global Financial Crisis 2008 - risky lending to poor credit borrowers - defaulted

Question 6

Financial Crisis emerging economy

Answer 6

Asian financial crisis in 1990s. The crisis started in Thailand.Triggered by excessive borrowing, high levels of debt and speculative attacks on currencies.

Question 7

Purchase & assumption method

Answer 7

HBOS was a bank that collapsed in 2008. Merged with Lloyds TSB