LIBF-Unit 4 Exam Questions and answers RATED A+
2025/2026 UPDATED NEW!! 100% VERIFIED CORRECT
competition and markets authority - Answers The body responsible for strengthening
business competition and preventing and reducing anti-competitive activities.
counterparties - Answers People and organisations (eg companies) who lend money to and
borrow from financial intermediaries (ie financial institutions such as banks)
divestment - 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 - 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 - 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 - 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 - 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 - Answers Her Majesty's (HM) Treasury, the government department responsible
for development and implementation of financial and economic policy.
, investment banks - 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 - 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 - 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 - Answers The manipulation of interest rates to maintain low inflation.
monetary policy committee - Answers The Bank of England committee responsible for
keeping inflation under control by the manipulation of interest rates.
oligopoly - Answers A market dominated by a few large firms, eg the financial services sector.
peer-to-peer lenders - 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 - Answers Banks that deal directly with consumers, eg providing current accounts
and mortgages.
retail ring-fencing - 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.
2025/2026 UPDATED NEW!! 100% VERIFIED CORRECT
competition and markets authority - Answers The body responsible for strengthening
business competition and preventing and reducing anti-competitive activities.
counterparties - Answers People and organisations (eg companies) who lend money to and
borrow from financial intermediaries (ie financial institutions such as banks)
divestment - 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 - 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 - 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 - 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 - 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 - Answers Her Majesty's (HM) Treasury, the government department responsible
for development and implementation of financial and economic policy.
, investment banks - 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 - 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 - 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 - Answers The manipulation of interest rates to maintain low inflation.
monetary policy committee - Answers The Bank of England committee responsible for
keeping inflation under control by the manipulation of interest rates.
oligopoly - Answers A market dominated by a few large firms, eg the financial services sector.
peer-to-peer lenders - 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 - Answers Banks that deal directly with consumers, eg providing current accounts
and mortgages.
retail ring-fencing - 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.
