Topic 1

Question 1

What is the 2 responsibilities of the CMA

Answer 1

strengthen business competition, prevent and reduce and anti competitive activities

Question 2

What are counterparties

Answer 2

People and organisations who lend and borrow from financial institutions

Question 3

What is a credit union

Answer 3

A mutual organisation owned by its member that provides various financial products

Question 4

What must members of a credit union share

Answer 4

a common bond

Question 5

What is divestment

Answer 5

Selling off parts of a company to make it smaller

Question 6

What is divestment

Answer 6

selling of parts of a business to make it smaller

Question 7

What are the 2 purposes of the FCA

Answer 7

regulate financial firms, maintain integrity of UK financial markets

Question 8

what is a financial intermediary

Answer 8

a financial institution that facilitates the process of lending and borrowing, by taking deposits with surplus (interest)

Question 9

what is financial intermediation

Answer 9

taking in deposits from those with a surplus and lending funds to people who need to borrow

Question 10

What is the FOS

Answer 10

An independent body set up by Parliament that settles customer complaints about providers at no charge to consumers

Question 11

What is the purpose of the FPC

Answer 11

monitor and respond to risk posed to the entire financial services market

Question 12

What is the purpose of FSCS

Answer 12

To compensate consumers who have had the providers default

Question 13

What is a friendly society

Answer 13

a mutual organisation that offers its members a wide range of financial products

Question 14

What is the Hm treasury

Answer 14

the government department responsible for development and implementation of financial or economic policy

Question 15

What is an IFA

Answer 15

a professional who makes financial recommendations to a client

Question 16

what is the lloyd’s insurance market

Answer 16

an insurance market place where members employ underwriters to come together and accept insurance risk, dividing it out between members

Question 17

what are long term capital markets

Answer 17

financial markets where long term debt and shares in the bank are bought and sold

Question 18

what is a benefit of long term capital markets

Answer 18

it provides a source of funding for banks

Question 19

what is monetary policy

Answer 19

the manipulation of interest rates to maintain low inflation

Question 20

What is the monetary policy committee responsible for

Answer 20

keeping inflation under control by the manipulation of interest rates

Question 21

What is a mutual organisation

Answer 21

an organisation owned by its customers who are the members

Question 22

What is an oligopoly

Answer 22

a market dominated by a few large firms

Question 23

what are payday loan companies

Answer 23

online firms that provide instant short term unsecured cash of small amounts to people who need immediate cash

Question 24

what are peer to peer lenders

Answer 24

online marketplaces that enable people to lend to and borrow from each other

Question 25

what are the prudential regulation authority

Answer 25

a regulatory of financial services

Question 26

what is a restricted financial adviser

Answer 26

a professional who can only recommend certain types of product from one or a limited number of providers

Question 27

What are restricted financial advisers not allow to call there service

Answer 27

independent

Question 28

what are retail banks

Answer 28

banks that deal directly with consumers

Question 29

what is retail ring-fencing

Answer 29

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

Question 30

What are short term money markets

Answer 30

financial markets where banks borrow over short periods, where banks with short-term surpluses lend to banks with short-term benefits

Question 31

What type of ownership is a bank

Answer 31

public limited

Question 32

What government department has overall responsibility for the UK financial stability

Answer 32

HM treasury

Question 33

who do retail banks provide service to

Answer 33

individuals and small to medium sized business

Question 34

what is the largest building society in the Uk

Answer 34

nationwide

Question 35

what 2 main categories can providers be subdivided into

Answer 35

individual insurance companies and Lloyd’s insurance market

Question 36

who are credit unions regulated by

Answer 36

pra and fca

Question 37

what are the MPC responsible for

Answer 37

carrying out government monetary policy

Question 38

What is a independent financial adviser permitted to sell products of

Answer 38

any provider

Question 39

what is an objective of the Financial policy committee

Answer 39

support government economic policy

Question 40

what is an example of a payday loan company

Answer 40

lending stream

Question 41

what was the uk financial investments set up to manage in the 2007/8 financial crisis

Answer 41

shareholding of rescued banks

Question 42

What sector are you in if you have more money going out than coming in

Answer 42

deficit

Question 43

What are people who borrow and lend from intermediaries called

Answer 43

counterparties