University of Strathclyde LIBF Unit 4 Topic 2 || Questions and
Answers.
Effective Competition correct answers When the providers on the market compete to provide the
best product, rather than taking advantage of lack of customer awareness or poor regulation
Good Competition correct answers Where there are a good number of providers on the market so
that consumers have a variety of firms to choose from
-Products well designed, meet needs
-Fair interest fees
- Provider doesn't sell unsuitable products
-Transparency
- Consider consumers affordability
Bad Competition correct answers Where there is a small number of large, powerful providers on
the market that only aim to maximise their sales, which may result in mis-selling and a lack of
differentiation in products.
- Products aren't differentiated
- Provide superficial info
Wasteful Competition correct answers Where providers spend huge amounts of money on
designing, branding and marketing a product that is only slightly different from those of its
competitors.
Product Complexity correct answers The idea that financial services products can be too
complicated for consumers to understand.
Competition Situation in Uk correct answers Demand side & Supply side
Answers.
Effective Competition correct answers When the providers on the market compete to provide the
best product, rather than taking advantage of lack of customer awareness or poor regulation
Good Competition correct answers Where there are a good number of providers on the market so
that consumers have a variety of firms to choose from
-Products well designed, meet needs
-Fair interest fees
- Provider doesn't sell unsuitable products
-Transparency
- Consider consumers affordability
Bad Competition correct answers Where there is a small number of large, powerful providers on
the market that only aim to maximise their sales, which may result in mis-selling and a lack of
differentiation in products.
- Products aren't differentiated
- Provide superficial info
Wasteful Competition correct answers Where providers spend huge amounts of money on
designing, branding and marketing a product that is only slightly different from those of its
competitors.
Product Complexity correct answers The idea that financial services products can be too
complicated for consumers to understand.
Competition Situation in Uk correct answers Demand side & Supply side
