LIBF-Unit 4 Exam Ques ons and answers RATED A+
2025/2026 UPDATED NEW!! 100% VERIFIED CORRECT
compe on and markets authority - Answers The body responsible for strengthening
business compe on and preven ng and reducing an -compe ve ac vi es.
counterpar es - Answers People and organisa ons (eg companies) who lend money to and
borrow from financial intermediaries (ie financial ins tu ons 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 ins tu on 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 intermedia on - 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 commi&ee - Answers A part of the Bank of England that monitors and
responds to risk posed to the en re financial services market. Its focus on the whole market
makes it a macro-pruden al authority.
friendly society - Answers A mutual organisa on that offers its members a wide range of
financial products, which can include savings, investments, insurance, pensions and annui es.
hm treasury - Answers Her Majesty's (HM) Treasury, the government department responsible
for development and implementa on of financial and economic policy.
, investment banks - Answers Banks that raise funds on the financial markets, rather than
accep ng deposits as a retail bank does. They use these funds to provide special services to
large corpora ons and to governments. Also known as wholesale banks.
lloyd's insurance market - Answers An insurance marketplace where members (corpora ons
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 manipula on of interest rates to maintain low infla on.
monetary policy commi&ee - Answers The Bank of England commi&ee responsible for
keeping infla on under control by the manipula on 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 tradi onal financial ins tu on 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 Separa ng the deposit-taking part of a bank or building society
from the rest of its business so that, in the event of financial difficul es, the ring- fenced
deposits of retail customers cannot be used to pay the debts of the more risky investment
sec on of the bank.
2025/2026 UPDATED NEW!! 100% VERIFIED CORRECT
compe on and markets authority - Answers The body responsible for strengthening
business compe on and preven ng and reducing an -compe ve ac vi es.
counterpar es - Answers People and organisa ons (eg companies) who lend money to and
borrow from financial intermediaries (ie financial ins tu ons 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 ins tu on 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 intermedia on - 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 commi&ee - Answers A part of the Bank of England that monitors and
responds to risk posed to the en re financial services market. Its focus on the whole market
makes it a macro-pruden al authority.
friendly society - Answers A mutual organisa on that offers its members a wide range of
financial products, which can include savings, investments, insurance, pensions and annui es.
hm treasury - Answers Her Majesty's (HM) Treasury, the government department responsible
for development and implementa on of financial and economic policy.
, investment banks - Answers Banks that raise funds on the financial markets, rather than
accep ng deposits as a retail bank does. They use these funds to provide special services to
large corpora ons and to governments. Also known as wholesale banks.
lloyd's insurance market - Answers An insurance marketplace where members (corpora ons
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 manipula on of interest rates to maintain low infla on.
monetary policy commi&ee - Answers The Bank of England commi&ee responsible for
keeping infla on under control by the manipula on 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 tradi onal financial ins tu on 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 Separa ng the deposit-taking part of a bank or building society
from the rest of its business so that, in the event of financial difficul es, the ring- fenced
deposits of retail customers cannot be used to pay the debts of the more risky investment
sec on of the bank.
