Topic 3- Sustainability In The Financial Servcies Sector Flashcards
1
Q
Name the 3 types of sustainability:
A
- Environmental Sustainability
- Social Sustainability
- Economic Sustainability
2
Q
What is environmental sustainability?
A
Reducing the negative human impact in the earths ecosystems
3
Q
What is economic sustainability?
A
Taking steps to reduce the undesirable consequences of economic activities which is measured in GDP
4
Q
What is social sustainability?
A
Creating communities that foster well being, peace, security and justice for those who live in them
5
Q
Why has the recession received less money in tax revenues lately?
A
- Fewer people are working and paying income tax
- Fewer people are spending and paying value added tax (VAT)
- Firms are making lower profits or no profit at all so pay less corporation tax
6
Q
What is systemic risk?
A
The risk affecting the stability of the financial system as a whole- e.g a domino effect of one provider failing which leads to more of them failing
7
Q
What is meant by the term sustainable financial product?
A
Designed to meet the long term requirements of those who buy it
