Financial Services and Economic Growth Quiz

CISI Learning Workbook and Examination Information

• Publication of content requires prior permission from the copyright owner
• Unauthorized use may result in civil claims for damages and criminal prosecution
• Laws mentioned in the workbook may not apply to Scotland
• Workbook contains the full syllabus and can be viewed on cisi.org or by contacting Customer Support Centre
• Examination is based on the syllabus and questions in the workbook aid in revision
• Hand-held calculators are not allowed in CISI exam venues
• Workbook version: 6.3 (October 2023)
• Changes in industry practice, economic conditions, legislation/regulations, and technology may prompt publication of an updated version
• CISI is the leading professional body for the investment sector
• CISI examinations are recognized by various governments and regulators globally
• Around 50,000 CISI examinations are taken each year
• CISI learning workbooks are revised annually and count towards Continuing Professional Development (CPD)

The Role of the Financial Services Sector in Economic Growth

• Popov and Roosenboom (2009) found that better access to private equity and venture capital positively impacts the number of patents in Europe.
• Developing countries are prioritizing the development of their financial services sector for economic growth.
• Research shows a positive link between financial system sophistication and economic growth, improving resource allocation.
• A functioning financial system is vital for credit provision, risk management, and creating a marketplace for finance and financial securities.
• Well-developed financial markets and institutions facilitate capital accumulation and production of goods and services.
• The financial services sector includes businesses providing financial services to governments, businesses, and individuals.
• Wholesale financial markets enable organizations to raise short-term finance and long-term capital for various purposes.
• Retail financial markets provide services directly to individuals and small businesses, including banking, lending, insurance, and wealth management.
• The wholesale financial sector includes international banking, equity markets, bond markets, foreign exchange, derivatives, fund management, insurance, and investment banking.
• The retail sector focuses on services for personal customers, including retail banking, insurance, pensions, investment services, and financial planning.
• Many large organizations span the entire spectrum of financial services, blurring traditional boundaries between products and providers.
• Today’s financial services marketplace offers a range of banks and savings institutions providing deposit, lending, and investment products.