Unit 2_Definition, Functions, Factors.

Question 1

Development of Banking (READ-ONLY)

Answer 1

Singapore’s development as an International Financial Centre (IFC) began in the late 1960s. Over the years, Singapore has been ranked among the top most sophisticated financial markets in the world.

Question 2

Definition of IFC

Answer 2

The reason Singapore is ranked among the tops is it is able to provide locality with a network of established financial institutions and efficient markets, and a wide range of financial services.

Question 3

Functions of IFC

Answer 3

Thus, it has attracted domestic, regional and international flow of funds for trade and investment, thereby promoting economic growth and financial development of countries in the region.
(Example) Singapore hopes to manage the funds of wealthy individuals and institutions from Middle East if they decide to park their funds outside of Europe and the US.

Question 4

Factors that have helped Singapore become an International Financial Centre. PECSSSHCSPAN

Answer 4

Pelican Eats Cans of Smelly, Sweet & Sour Hair Contently So Pelicans Are New.

Question 5

Factors that have helped Singapore become an International Financial Centre.
PEC

Answer 5

PEC: Pelican Eats Cans of
> Pro-business environment 
(eg regulatory and business environment)
> Excellent infrastructure
(air, land and sea transportation)
> Cost competitiveness

Question 6

Factors that have helped Singapore become an International Financial Centre.
SSS

Answer 6

SSS: of Smelly, Sweet & Sour
> Skilled workforce and attraction of talents
> Sound Fundamentals
> Strategic location in a region of opportunities

Question 7

Factors that have helped Singapore become an International Financial Centre.
HCS

Answer 7

HCS: Hair Contently So
> High living standards
> Corruption-free civil service
> Stable currency

Question 8

Factors that have helped Singapore become an International Financial Centre.
PAN

Answer 8

PAN: Pelicans Are New
> Presence of reputable international institutions
> Active and innovative local banks
> New financial institutions and markets

Question 9

Factors that have helped Singapore become an International Financial Centre.
(ALL LISTED)

Answer 9

>Pro-business environment ()
>Excellent infrastructure ()
>Cost competitiveness
>Skilled workforce and attraction of talents
>Sound fundamentals ()
>Strategic location in a region of opportunities
>High living standards
>Corruption-free civil service
>Stable currency
>Presence of reputable international institutions
>Active and innovative local banks
>New financial instruments and markets