topic 7

Question 1

Bitcoin

Answer 1

a virtual currency

Question 2

Boomerang
generation

Answer 2

Young adults who leave home and then need to return because they
cannot afford to rent or buy a home of their own.

Question 3

Capital
Requirements
Directive

Answer 3

European Union legislation that specifies the liquid assets that
providers must hold to ensure they can meet demand if large numbers of customers want to withdraw their money at the same time.

Question 4

challenger bank

Answer 4

Any new bank that challenges the dominance of the ‘big four’.
Examples include Virgin Money, Metro Bank, TSB, Monzo Bank and
Starling Bank

Question 5

Coronavirus

Answer 5

coronavirus disease, known as Covid-19, is a respiratory illness that
causes mild to moderate symptoms in a majority of cases but proves debilitating or fatal for a significant minority. It caused a global
pandemic with wide-ranging economic effects

Question 6

equity loan

Answer 6

A loan secured on a mortgaged property.

Question 7

EU Deposit
Guarantee Scheme
Directive

Answer 7

European Union legislation that sets out the minimum level of
compensation for depositors if a financial institution fails. It was set at
€100,000 in 2010

Question 8

eu directive

Answer 8

A legislative act of the European Union, which requires member states
to achieve a particular result without dictating the means of achieving
that result.

Question 9

eu gender directive

Answer 9

European Union legislation setting out the principle that men and
women should be able to access goods and services on an equal basis, eg insurance premiums cannot be calculated differently for men and women solely because of the customer’s gende

Question 10

European Banking
Authority

Answer 10

The body that ensures effective and consistent prudential regulation
and supervision across the European banking sector.

Question 11

European Insurance
and Occupational
Pensions Authority

Answer 11

The body that supports the stability of the financial system,
transparency of markets and financial products as well as the
protection of insurance policyholders, pension scheme members and beneficiaries

Question 12

European Securities
and Markets
Authority

Answer 12

The body that ensures the integrity, transparency, efficiency and
orderly functioning of securities markets, as well as enhancing
investor protection.

Question 13

European System of
Financial
Supervision

Answer 13

the system to stabilise financial markets and strengthen the
supervision of the financial sector throughout Europe.

Question 14

Financial Services
Compensation
Scheme (FSCS)

Answer 14

A compensation scheme that pays compensation to account holders of
up to a certain amount per provider if the provider goes into default
(so cannot pay account holders the money they have in their
accounts)

Question 15

‘Help to Buy’ equity
loan scheme

Answer 15

A government-backed initiative set up to help homebuyers purchase a
property with as little as a 5% deposit.

Question 16

remuneration Code

Answer 16

A code operated by the Financial Conduct Authority requiring that 50%
of the bonuses paid to a bank’s senior managers and others in key
positions of responsibility is paid in shares.

Question 17

Transparency
Directive

Answer 17

European legislation requiring financial services firms to store and
provide regulated information in a specified manner.