Role Of The Government

Question 1

Explain briefly the 4 main functions of the government

Answer 1

1. Providing services that private firms are either unwilling or not allowed to provide
2. Regulating firms and markets, principally to protect the consumer
3. Intervening in the distribution of income generated by private market transactions
4. Stabilising the economy

Question 2

What are the main regulatory bodies for financial services in the UK?

Answer 2

1. FCA - financial conduct authority
2. PRA - prudential regulation authority
3. FPC - financial policy committee