DIPFS U4 SPECIMEN C 21-30

Which of the following creates uncertainty as to the future purchasing power of money?

• Inflation.

• Interest.

• Risk.

• Unemployment.

What is the most likely impact on financial services providers of high unemployment?

• Falling demand for financial support.

• Greater demand for investment services.

• Increasing demand for mortgages.

• Increasing levels of bad debts.

Changes in financial services regulation have directly affected providers mostly by:

• closing branches.

• increasing costs

• increasing profits.

• reducing staff.

Which of the following is an example of how the UK government has had a direct impact on the financial services industry?

• Decreased regulation.

• Some providers have been partly nationalised.

• The government runs the UK banking system.

• The prime minister is responsible for banking conduct.

Which of the following products is most likely to be demanded in response to increased risk to personal circumstances?

• Insurance products.

• Investment products.

• Lending products.

• Savings products.

Which of the following is a useful tool for financial organisations to describe what they are offering?

• Brand awareness.

• Loss leaders.

• Marketing mix.

• PESTEL analysis

Which of the following is an example of a promotion to communicate messages that reinforce customer relationships?

• Advertising.

• Demographics.

• Segmentation

• Sustainability.

Which of the following is primarily used to distinguish one organisation from another, and to convey a message to the market about an organisation's values?

• Branding.

• Loyalty.

• Packaging.

• Selling.

Which of the following focuses on transactional selling?

• Customer benefits.

• Customer contact.

• Long timescales.

• Sales targets.

When implementing a relationship management approach, on which of the following would financial services providers focus?

• Attracting new customers.

• Customer retention.

• Product features.

• The short term.