Unit 4 Topic 5

What is one of the main objectives of financial regulation?

• To reduce the risk of financial crisis

• To increase the profits of financial firms

• To eliminate all financial regulations

• To ensure all banks have the same interest rates

What is a significant cost in human resources terms due to financial regulation?

• Recruiting and training qualified compliance staff

• Reducing the number of employees

• Eliminating training programs

• Increasing salaries for all staff

What does the FCA need to demonstrate regarding regulatory costs?

• Proportionality

• Profitability

• Sustainability

• Flexibility

In 2012, why was HSBC fined US$1.9bn by the US authorities?

• For tax evasion

• For allowing money laundering via its Mexican subsidiary

• For insider trading

• For mis-selling financial products

What is the economic environment's impact on financial services providers?

• No impact

• Affects success or failure

• Guarantees success

• Ensures stability

What effect does a rise in the rate of sterling have on imported products?

• Makes them more expensive

• Makes them cheaper

• Has no effect

• Increases demand

Which 'Help to Buy' product ended in December 2016?

• Help to Buy: mortgage guarantee scheme

• Help to Buy: equity loan

• Help to Buy ISA

• Shared ownership

Which bank is mentioned as offering Sharia-compliant products?

• HSBC

• Barclays

• Al Rayan Bank

• Lloyds Bank

What is a potential implication for mainstream lenders due to high customer debt?

• Increased lending

• Customers unable to repay debts

• Lower interest rates

• More profit

What is the main goal of the NEST initiative?

• To complicate pension saving

• To meet the needs of experienced savers

• To simplify pension saving for new savers

• To eliminate workplace pensions