University of Strathclyde LIBF Unit 4 Topic 1 || Guaranteed Pass.
Competition and Markets Authority (CMA) 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).
Credit Union correct answers A mutual organisation (that is, owned by its members) that
provides a range of financial products to members, eg savings accounts and personal loans.
Members of a credit union must share a common bond, eg all work for the same employer or all
work in the same district.
Divestment correct answers The process of selling off parts of a company to make it smaller e.g.
Lloyds sell-off that created new TSB branches
Financial Conduct Authority (FCA) correct answers The organisation that regulates financial
firms providing services to consumers, and maintains the integrity of the UK's financial markets.
Financial intermediary correct answers A financial institution that facilitates the exchange of
funds between savers and spenders by taking in funds from savers and then lending those funds
to borrowers and investors
Financial intermediation correct answers The process of taking in deposits from those with a
surplus and lending those funds out of those who need to borrow
Financial Ombudsman Service (FOS) correct answers An independent body set up by Parliament
that settles customer complaints about providers at no charge to consumers
Competition and Markets Authority (CMA) 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).
Credit Union correct answers A mutual organisation (that is, owned by its members) that
provides a range of financial products to members, eg savings accounts and personal loans.
Members of a credit union must share a common bond, eg all work for the same employer or all
work in the same district.
Divestment correct answers The process of selling off parts of a company to make it smaller e.g.
Lloyds sell-off that created new TSB branches
Financial Conduct Authority (FCA) correct answers The organisation that regulates financial
firms providing services to consumers, and maintains the integrity of the UK's financial markets.
Financial intermediary correct answers A financial institution that facilitates the exchange of
funds between savers and spenders by taking in funds from savers and then lending those funds
to borrowers and investors
Financial intermediation correct answers The process of taking in deposits from those with a
surplus and lending those funds out of those who need to borrow
Financial Ombudsman Service (FOS) correct answers An independent body set up by Parliament
that settles customer complaints about providers at no charge to consumers
