Topic 1 Flashcards
What is the 2 responsibilities of the CMA
strengthen business competition, prevent and reduce and anti competitive activities
What are counterparties
People and organisations who lend and borrow from financial institutions
What is a credit union
A mutual organisation owned by its member that provides various financial products
What must members of a credit union share
a common bond
What is divestment
Selling off parts of a company to make it smaller
What is divestment
selling of parts of a business to make it smaller
What are the 2 purposes of the FCA
regulate financial firms, maintain integrity of UK financial markets
what is a financial intermediary
a financial institution that facilitates the process of lending and borrowing, by taking deposits with surplus (interest)
what is financial intermediation
taking in deposits from those with a surplus and lending funds to people who need to borrow
What is the FOS
An independent body set up by Parliament that settles customer complaints about providers at no charge to consumers
What is the purpose of the FPC
monitor and respond to risk posed to the entire financial services market
What is the purpose of FSCS
To compensate consumers who have had the providers default
What is a friendly society
a mutual organisation that offers its members a wide range of financial products
What is the Hm treasury
the government department responsible for development and implementation of financial or economic policy
What is an IFA
a professional who makes financial recommendations to a client
what is the lloyd’s insurance market
an insurance market place where members employ underwriters to come together and accept insurance risk, dividing it out between members
what are long term capital markets
financial markets where long term debt and shares in the bank are bought and sold
what is a benefit of long term capital markets
it provides a source of funding for banks
what is monetary policy
the manipulation of interest rates to maintain low inflation
What is the monetary policy committee responsible for
keeping inflation under control by the manipulation of interest rates
What is a mutual organisation
an organisation owned by its customers who are the members
What is an oligopoly
a market dominated by a few large firms
what are payday loan companies
online firms that provide instant short term unsecured cash of small amounts to people who need immediate cash
what are peer to peer lenders
online marketplaces that enable people to lend to and borrow from each other
what are the prudential regulation authority
a regulatory of financial services
what is a restricted financial adviser
a professional who can only recommend certain types of product from one or a limited number of providers
What are restricted financial advisers not allow to call there service
independent
what are retail banks
banks that deal directly with consumers
what is retail ring-fencing
separating the deposit-taking part of a financial service from the rest of their business to prevent deposits being used for the investing side of a bank
What are short term money markets
financial markets where banks borrow over short periods, where banks with short-term surpluses lend to banks with short-term benefits
What type of ownership is a bank
public limited
What government department has overall responsibility for the UK financial stability
HM treasury
who do retail banks provide service to
individuals and small to medium sized business
what is the largest building society in the Uk
nationwide
what 2 main categories can providers be subdivided into
individual insurance companies and Lloyd’s insurance market
who are credit unions regulated by
pra and fca
what are the MPC responsible for
carrying out government monetary policy
What is a independent financial adviser permitted to sell products of
any provider
what is an objective of the Financial policy committee
support government economic policy
what is an example of a payday loan company
lending stream
what was the uk financial investments set up to manage in the 2007/8 financial crisis
shareholding of rescued banks
What sector are you in if you have more money going out than coming in
deficit
What are people who borrow and lend from intermediaries called
counterparties
