Unit 3 Topic 7 Flashcards
Who are the boomerang generation?
Young adults who leave home and then need to return because they
cannot afford to rent or buy a home of their own.
What is this refering to?
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.
Capital requirements directive
What is a challenger bank? Can you name any examples?
Any new bank that challenges the dominance of the ‘big four’.
Examples include Virgin Money, Metro Bank, TSB, Monzo Bank and
Starling Bank.
What is an equity loan?
A loan secured on a mortgaged property.
What is this refering to?
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.
EU Deposit
Guarantee Scheme
Directive
What is this refering to?
A legislative act of the European Union, which requires member states
to achieve a particular result without dictating the means of achieving
that result.
EU Directive
What did the EU gender directive set out?
the principle that men and
women should be able to access goods and services on an equal basis.
Who are the European Banking Authority?
The body that ensures effective and consistent prudential regulation
and supervision across the European banking sector.
Who is this refering to?
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.
European Insurance
and Occupational
Pensions Authority
Who is this refering to?
The body that ensures the integrity, transparency, efficiency and
orderly functioning of securities markets, as well as enhancing
investor protection.
European Securities
and Markets
Authority
What is the European system of financial supervision?
The system to stabilise financial markets and strengthen the
supervision of the financial sector throughout Europe.
What is the FSCS? (throwback)
A compensation scheme that pays compensation to account holders of
up to a certain amount per provider if the provider goes into default.
What is the ‘Help to Buy’ equity loan scheme?
A government-backed initiative set up to help homebuyers purchase a
property with as little as a 5% deposit.
What code is this refering to?
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.
Remuneration Code
What is the transparency directive?
European legislation requiring financial services firms to store and
provide regulated information in a specified manner.
How have technological advancements changed financial services?
They have enabled online banking, mobile payment apps, budget planners, and easier access to financial information.
How has the state pension age changed in the UK?
It has gradually increased, meaning individuals must work longer before claiming their pension.
Why did the Bank of England lower interest rates after the 2007–08 financial crisis?
To stimulate economic growth by making borrowing cheaper and saving less attractive.
What effect have low interest rates had on borrowers and savers?
Borrowers benefit from lower repayment costs, while savers struggle to earn good returns on their savings.
How have changes in financial regulation affected bank staff remuneration?
Bonuses are now capped at 100% of base salary, reducing excessive risk-taking.
What is Bitcoin, and how does it differ from traditional currency?
Bitcoin is a decentralized digital currency not backed by any government or central bank.
What are some potential benefits of Brexit for the UK economy?
Greater control over trade policies, reduced EU contributions, and more independent economic policies.
What are some challenges Brexit has created for the UK economy?
Increased trade costs, loss of foreign investment, and potential job losses due to reduced access to EU markets.
