Unit 4 Topic 1 KW

What is the role of the Competition and Markets Authority (CMA)?

• A mutual organisation that provides a range of financial products to members.

• The body responsible for strengthening business competition and preventing and reducing anti-competitive activities.

• An independent body that settles customer complaints about providers at no charge to consumers.

• The organisation that regulates financial firms providing services to consumers.

What does a Credit Union provide to its members?

• Financial recommendations based on a wide range of products.

• A range of financial products such as savings accounts and personal loans.

• Compensation to account holders if the provider goes into default.

• Funds raised on the financial markets for large corporations and governments.

What is the Financial Conduct Authority (FCA) responsible for?

• Monitoring and responding to risk posed to the entire financial services market.

• Strengthening business competition and preventing anti-competitive activities.

• Regulating financial firms providing services to consumers and maintaining the integrity of the UK's financial markets.

• Offering its members a wide range of financial products, including savings and annuities.

What is the primary function of a Financial Intermediary?

• To sell off parts of a company to make it smaller.

• To take in deposits from those with a surplus and lend those funds out to those who need to borrow.

• To provide compensation to account holders if the provider goes into default.

• To make financial recommendations to clients based on products offered by a wide range of providers.

What is the purpose of the Financial Services Compensation Scheme (FSCS)?

• To facilitate the process of lending and borrowing by taking deposits from those with a surplus.

• To regulate financial firms providing services to consumers.

• To pay compensation to account holders if the provider goes into default (up to a certain amount per provider).

• To monitor and respond to risk posed to the entire financial services market.

What type of organisation is a Friendly Society?

• A body responsible for strengthening business competition.

• A mutual organisation that offers its members a wide range of financial products.

• An organisation that takes in deposits from those with a surplus and lends those funds out.

• A government department responsible for economic policy.

What is the role of Investment Banks?

• To provide a range of financial products to members, such as savings accounts and personal loans.

• To regulate financial firms providing services to consumers.

• To raise funds on the financial markets and provide special services to large corporations and governments.

• To settle customer complaints about providers at no charge to consumers.

What is the purpose of Lloyd's insurance market?

• To provide a platform for individuals to purchase personal insurance

• To act as a regulatory body for insurance companies

• To serve as an insurance marketplace where members come together to share insurance risk

• To offer long-term loans to corporations and individuals

What does the Monetary Policy Committee (MPC) aim to control?

• The number of banks in the UK

• The inflation rate through the manipulation of interest rates

• The total amount of money in circulation

• The unemployment rate

What characterizes an oligopoly?

• A market with perfect competition

• A market with a single dominant firm

• A market with many small firms

• A market dominated by a few large firms