Libf-Unit 4 With Accurate Answers
competition rand rmarkets rauthority r- rCORRECT✅✅The rbody rresponsible rfor
rstrengthening rbusiness rcompetition rand rpreventing rand rreducing ranti-competitive
ractivities.
counterparties r- rCORRECT✅✅People rand rorganisations r(eg rcompanies) rwho rlend
rmoney rto rand rborrow rfrom rfinancial rintermediaries r(ie rfinancial rinstitutions rsuch ras
rbanks)
divestment r- rCORRECT✅✅The rprocess rof rselling roff rparts rof ra rcompany rto rmake
rit rsmaller, reg rthe rLloyds rsell-off rthat rcreated rnew rTSB rbranches.
financial rintermediary r- rCORRECT✅✅A rfinancial rinstitution rthat rfacilitates rthe
rprocess rof rlending rand rborrowing, rby rtaking rdeposits rfrom rthose rwith ra rsurplus rand
rlending rthose rfunds rout rto rthose rwho rneed rto rborrow.
financial rintermediation r- rCORRECT✅✅The rprocess rof rtaking rin rdeposits rfrom
rthose rwith ra rsurplus rand rlending rthose rfunds rout rto rthose rwho rneed rto rborrow r(see
rfinancial rintermediary).
financial rpolicy rcommittee r- rCORRECT✅✅A rpart rof rthe rBank rof rEngland rthat
rmonitors rand rresponds rto rrisk rposed rto rthe rentire rfinancial rservices rmarket. rIts
rfocus ron rthe rwhole rmarket rmakes rit ra rmacro-prudential rauthority.
friendly rsociety r- rCORRECT✅✅A rmutual rorganisation rthat roffers rits rmembers ra
rwide rrange rof rfinancial rproducts, rwhich rcan rinclude rsavings, rinvestments, rinsurance,
rpensions rand rannuities.
hm rtreasury r- rCORRECT✅✅Her rMajesty's r(HM) rTreasury, rthe rgovernment
rdepartment rresponsible rfor rdevelopment rand rimplementation rof rfinancial rand
reconomic rpolicy.
investment rbanks r- rCORRECT✅✅Banks rthat rraise rfunds ron rthe rfinancial rmarkets,
rrather rthan raccepting rdeposits ras ra rretail rbank rdoes. rThey ruse rthese rfunds rto
rprovide rspecial rservices rto rlarge rcorporations rand rto rgovernments. rAlso rknown ras
rwholesale rbanks.
lloyd's rinsurance rmarket r- rCORRECT✅✅An rinsurance rmarketplace rwhere
rmembers r(corporations rand rindividuals) remploy runderwriters rto rcome rtogether rand
raccept rinsurance rrisk, rdividing rit rout rbetween rthe rmembers.
, long-term rcapital rmarkets r- rCORRECT✅✅Financial rmarkets rwhere rlong-term rdebt
r(ie rbonds) rand rshares rin rthe rbank r(equity) rare rbought rand rsold. rThis rprovides ra
rsource rof rfunding rfor rbanks.
monetary rpolicy r- rCORRECT✅✅The rmanipulation rof rinterest rrates rto rmaintain rlow
rinflation.
monetary rpolicy rcommittee r- rCORRECT✅✅The rBank rof rEngland rcommittee
rresponsible rfor rkeeping rinflation runder rcontrol rby rthe rmanipulation rof rinterest rrates.
oligopoly r- rCORRECT✅✅A rmarket rdominated rby ra rfew rlarge rfirms, reg rthe
rfinancial rservices rsector.
peer-to-peer rlenders r- rCORRECT✅✅Online rmarketplaces rthat renable rpeople rto
rlend rto rand rborrow rfrom reach rother rwithout rusing ra rtraditional rfinancial rinstitution
rsuch ras ra rbank ror rbuilding rsociety.
retail rbanks r- rCORRECT✅✅Banks rthat rdeal rdirectly rwith rconsumers, reg rproviding
rcurrent raccounts rand rmortgages.
retail rring-fencing r- rCORRECT✅✅Separating rthe rdeposit-taking rpart rof ra rbank ror
rbuilding rsociety rfrom rthe rrest rof rits rbusiness rso rthat, rin rthe revent rof rfinancial
rdifficulties, rthe rring- rfenced rdeposits rof rretail rcustomers rcannot rbe rused rto rpay rthe
rdebts rof rthe rmore rrisky rinvestment rsection rof rthe rbank.
short-term rmoney rmarkets r- rCORRECT✅✅Financial rmarkets rwhere rbanks rborrow
rover rshort rperiods r(ie rmonths, rweeks ror reven rdays), respecially rfrom rthe rinterbank
rmarket, rwhere rbanks rwith rshort-term rsurpluses rlend rto rbanks rwith rshort-term
rdeficits.
bad rcompetition r- rCORRECT✅✅Where rthere ris ra rsmall rnumber rof rlarge, rpowerful
rproviders ron rthe rmarket rthat ronly raim rto rmaximise rtheir rsales, rwhich rmay rresult rin
rmis-selling rand ra rlack rof rdifferentiation rin rproducts.
barriers rto rentry r- rCORRECT✅✅The rfeatures rof rthe rmarket rthat rmake rit rdifficult
rfor rnew rfirms rto renter rand rcompete.
barriers rto rexpansion r- rCORRECT✅✅The rfeatures rof rthe rmarket rthat rmake rit
rdifficult rfor rnew rfirms rto rgrow.
competitive rmarket r- rCORRECT✅✅A rmarket rwhere rthere ris ra rlarge rnumber rof
rsellers rand rwhere rno rone rof rthese ris rso rbig rthat rit rcan rdominate rthe rmarket.
concentration rratio r- rCORRECT✅✅The rpercentage rof ra rparticular rmarket
raccounted rfor rby ra rcertain rnumber rof rfirms.
competition rand rmarkets rauthority r- rCORRECT✅✅The rbody rresponsible rfor
rstrengthening rbusiness rcompetition rand rpreventing rand rreducing ranti-competitive
ractivities.
counterparties r- rCORRECT✅✅People rand rorganisations r(eg rcompanies) rwho rlend
rmoney rto rand rborrow rfrom rfinancial rintermediaries r(ie rfinancial rinstitutions rsuch ras
rbanks)
divestment r- rCORRECT✅✅The rprocess rof rselling roff rparts rof ra rcompany rto rmake
rit rsmaller, reg rthe rLloyds rsell-off rthat rcreated rnew rTSB rbranches.
financial rintermediary r- rCORRECT✅✅A rfinancial rinstitution rthat rfacilitates rthe
rprocess rof rlending rand rborrowing, rby rtaking rdeposits rfrom rthose rwith ra rsurplus rand
rlending rthose rfunds rout rto rthose rwho rneed rto rborrow.
financial rintermediation r- rCORRECT✅✅The rprocess rof rtaking rin rdeposits rfrom
rthose rwith ra rsurplus rand rlending rthose rfunds rout rto rthose rwho rneed rto rborrow r(see
rfinancial rintermediary).
financial rpolicy rcommittee r- rCORRECT✅✅A rpart rof rthe rBank rof rEngland rthat
rmonitors rand rresponds rto rrisk rposed rto rthe rentire rfinancial rservices rmarket. rIts
rfocus ron rthe rwhole rmarket rmakes rit ra rmacro-prudential rauthority.
friendly rsociety r- rCORRECT✅✅A rmutual rorganisation rthat roffers rits rmembers ra
rwide rrange rof rfinancial rproducts, rwhich rcan rinclude rsavings, rinvestments, rinsurance,
rpensions rand rannuities.
hm rtreasury r- rCORRECT✅✅Her rMajesty's r(HM) rTreasury, rthe rgovernment
rdepartment rresponsible rfor rdevelopment rand rimplementation rof rfinancial rand
reconomic rpolicy.
investment rbanks r- rCORRECT✅✅Banks rthat rraise rfunds ron rthe rfinancial rmarkets,
rrather rthan raccepting rdeposits ras ra rretail rbank rdoes. rThey ruse rthese rfunds rto
rprovide rspecial rservices rto rlarge rcorporations rand rto rgovernments. rAlso rknown ras
rwholesale rbanks.
lloyd's rinsurance rmarket r- rCORRECT✅✅An rinsurance rmarketplace rwhere
rmembers r(corporations rand rindividuals) remploy runderwriters rto rcome rtogether rand
raccept rinsurance rrisk, rdividing rit rout rbetween rthe rmembers.
, long-term rcapital rmarkets r- rCORRECT✅✅Financial rmarkets rwhere rlong-term rdebt
r(ie rbonds) rand rshares rin rthe rbank r(equity) rare rbought rand rsold. rThis rprovides ra
rsource rof rfunding rfor rbanks.
monetary rpolicy r- rCORRECT✅✅The rmanipulation rof rinterest rrates rto rmaintain rlow
rinflation.
monetary rpolicy rcommittee r- rCORRECT✅✅The rBank rof rEngland rcommittee
rresponsible rfor rkeeping rinflation runder rcontrol rby rthe rmanipulation rof rinterest rrates.
oligopoly r- rCORRECT✅✅A rmarket rdominated rby ra rfew rlarge rfirms, reg rthe
rfinancial rservices rsector.
peer-to-peer rlenders r- rCORRECT✅✅Online rmarketplaces rthat renable rpeople rto
rlend rto rand rborrow rfrom reach rother rwithout rusing ra rtraditional rfinancial rinstitution
rsuch ras ra rbank ror rbuilding rsociety.
retail rbanks r- rCORRECT✅✅Banks rthat rdeal rdirectly rwith rconsumers, reg rproviding
rcurrent raccounts rand rmortgages.
retail rring-fencing r- rCORRECT✅✅Separating rthe rdeposit-taking rpart rof ra rbank ror
rbuilding rsociety rfrom rthe rrest rof rits rbusiness rso rthat, rin rthe revent rof rfinancial
rdifficulties, rthe rring- rfenced rdeposits rof rretail rcustomers rcannot rbe rused rto rpay rthe
rdebts rof rthe rmore rrisky rinvestment rsection rof rthe rbank.
short-term rmoney rmarkets r- rCORRECT✅✅Financial rmarkets rwhere rbanks rborrow
rover rshort rperiods r(ie rmonths, rweeks ror reven rdays), respecially rfrom rthe rinterbank
rmarket, rwhere rbanks rwith rshort-term rsurpluses rlend rto rbanks rwith rshort-term
rdeficits.
bad rcompetition r- rCORRECT✅✅Where rthere ris ra rsmall rnumber rof rlarge, rpowerful
rproviders ron rthe rmarket rthat ronly raim rto rmaximise rtheir rsales, rwhich rmay rresult rin
rmis-selling rand ra rlack rof rdifferentiation rin rproducts.
barriers rto rentry r- rCORRECT✅✅The rfeatures rof rthe rmarket rthat rmake rit rdifficult
rfor rnew rfirms rto renter rand rcompete.
barriers rto rexpansion r- rCORRECT✅✅The rfeatures rof rthe rmarket rthat rmake rit
rdifficult rfor rnew rfirms rto rgrow.
competitive rmarket r- rCORRECT✅✅A rmarket rwhere rthere ris ra rlarge rnumber rof
rsellers rand rwhere rno rone rof rthese ris rso rbig rthat rit rcan rdominate rthe rmarket.
concentration rratio r- rCORRECT✅✅The rpercentage rof ra rparticular rmarket
raccounted rfor rby ra rcertain rnumber rof rfirms.
