University of Edinburgh LIBF-Unit 4 || All Answers are Flawless.
competition and markets authority correct answers The body responsible for strengthening
business competition and preventing and reducing anti-competitive activities.
counterparties correct answers People and organisations (eg companies) who lend money to and
borrow from financial intermediaries (ie financial institutions such as banks)
divestment correct answers The process of selling off parts of a company to make it smaller, eg
the Lloyds sell-off that created new TSB branches.
financial intermediary correct answers A financial institution that facilitates the process of
lending and borrowing, by taking deposits from those with a surplus and lending those funds out
to those who need to borrow.
financial intermediation correct answers The process of taking in deposits from those with a
surplus and lending those funds out to those who need to borrow (see financial intermediary).
financial policy committee correct answers A part of the Bank of England that monitors and
responds to risk posed to the entire financial services market. Its focus on the whole market
makes it a macro-prudential authority.
friendly society correct answers A mutual organisation that offers its members a wide range of
financial products, which can include savings, investments, insurance, pensions and annuities.
hm treasury correct answers Her Majesty's (HM) Treasury, the government department
responsible for development and implementation of financial and economic policy.
investment banks correct answers Banks that raise funds on the financial markets, rather than
accepting deposits as a retail bank does. They use these funds to provide special services to large
corporations and to governments. Also known as wholesale banks.
, lloyd's insurance market correct answers An insurance marketplace where members
(corporations and individuals) employ underwriters to come together and accept insurance risk,
dividing it out between the members.
long-term capital markets correct answers Financial markets where long-term debt (ie bonds) and
shares in the bank (equity) are bought and sold. This provides a source of funding for banks.
monetary policy correct answers The manipulation of interest rates to maintain low inflation.
monetary policy committee correct answers The Bank of England committee responsible for
keeping inflation under control by the manipulation of interest rates.
oligopoly correct answers A market dominated by a few large firms, eg the financial services
sector.
peer-to-peer lenders correct answers Online marketplaces that enable people to lend to and
borrow from each other without using a traditional financial institution such as a bank or
building society.
retail banks correct answers Banks that deal directly with consumers, eg providing current
accounts and mortgages.
retail ring-fencing correct answers Separating the deposit-taking part of a bank or building
society from the rest of its business so that, in the event of financial difficulties, the ring- fenced
deposits of retail customers cannot be used to pay the debts of the more risky investment section
of the bank.
short-term money markets correct answers Financial markets where banks borrow over short
periods (ie months, weeks or even days), especially from the interbank market, where banks with
short-term surpluses lend to banks with short-term deficits.
competition and markets authority correct answers The body responsible for strengthening
business competition and preventing and reducing anti-competitive activities.
counterparties correct answers People and organisations (eg companies) who lend money to and
borrow from financial intermediaries (ie financial institutions such as banks)
divestment correct answers The process of selling off parts of a company to make it smaller, eg
the Lloyds sell-off that created new TSB branches.
financial intermediary correct answers A financial institution that facilitates the process of
lending and borrowing, by taking deposits from those with a surplus and lending those funds out
to those who need to borrow.
financial intermediation correct answers The process of taking in deposits from those with a
surplus and lending those funds out to those who need to borrow (see financial intermediary).
financial policy committee correct answers A part of the Bank of England that monitors and
responds to risk posed to the entire financial services market. Its focus on the whole market
makes it a macro-prudential authority.
friendly society correct answers A mutual organisation that offers its members a wide range of
financial products, which can include savings, investments, insurance, pensions and annuities.
hm treasury correct answers Her Majesty's (HM) Treasury, the government department
responsible for development and implementation of financial and economic policy.
investment banks correct answers Banks that raise funds on the financial markets, rather than
accepting deposits as a retail bank does. They use these funds to provide special services to large
corporations and to governments. Also known as wholesale banks.
, lloyd's insurance market correct answers An insurance marketplace where members
(corporations and individuals) employ underwriters to come together and accept insurance risk,
dividing it out between the members.
long-term capital markets correct answers Financial markets where long-term debt (ie bonds) and
shares in the bank (equity) are bought and sold. This provides a source of funding for banks.
monetary policy correct answers The manipulation of interest rates to maintain low inflation.
monetary policy committee correct answers The Bank of England committee responsible for
keeping inflation under control by the manipulation of interest rates.
oligopoly correct answers A market dominated by a few large firms, eg the financial services
sector.
peer-to-peer lenders correct answers Online marketplaces that enable people to lend to and
borrow from each other without using a traditional financial institution such as a bank or
building society.
retail banks correct answers Banks that deal directly with consumers, eg providing current
accounts and mortgages.
retail ring-fencing correct answers Separating the deposit-taking part of a bank or building
society from the rest of its business so that, in the event of financial difficulties, the ring- fenced
deposits of retail customers cannot be used to pay the debts of the more risky investment section
of the bank.
short-term money markets correct answers Financial markets where banks borrow over short
periods (ie months, weeks or even days), especially from the interbank market, where banks with
short-term surpluses lend to banks with short-term deficits.
