Financial Services Sector Quiz

<p>Opportunities for growth and potential returns. (D)</p> Signup and view all the answers

<p>That otherwise uninvested capital is allocated to businesses. (D)</p> Signup and view all the answers

<p>Growing integration and interdependence of trade and investment. (B)</p> Signup and view all the answers

<p>Individuals manage their pensions primarily through these schemes. (D)</p> Signup and view all the answers

<p>Increased productivity and stronger financial markets. (C)</p> Signup and view all the answers

<p>To manage investment portfolios for various clients. (C)</p> Signup and view all the answers

<p>Institutional managers work for large organizations, whereas private client managers serve individuals. (C)</p> Signup and view all the answers

<p>Facilitating the investment chain and allocation of capital. (A)</p> Signup and view all the answers

<p>Via a small percentage of the fund's value, sometimes with performance-based charges. (D)</p> Signup and view all the answers

<p>To arrange stock market trades on behalf of their clients. (C)</p> Signup and view all the answers

<p>Commodities (B)</p> Signup and view all the answers

<p>Asset Management (D)</p> Signup and view all the answers

<p>Over US$90 trillion (B)</p> Signup and view all the answers

<p>Private banks are lowering their investment thresholds and retail banks are expanding services to attract wealthier clients. (C)</p> Signup and view all the answers

<p>Proceeds from domestic loans (A)</p> Signup and view all the answers

<p>To achieve well-above-average returns from investments made abroad. (C)</p> Signup and view all the answers

<p>To take advantage of better opportunities, spread risks, and stabilize their local economies. (B)</p> Signup and view all the answers

<p>It implies that some of the largest funds may not be fully under public ownership. (A)</p> Signup and view all the answers

<p>They act as reserve capital for when natural resources are depleted. (D)</p> Signup and view all the answers

<p>Increased trade surpluses in some countries and oil revenue in others. (D)</p> Signup and view all the answers

<p>They hold, manage, or administer assets to achieve financial objectives. (C)</p> Signup and view all the answers

<p>The lack of transparency in their operations and potential political influence on their investments (C)</p> Signup and view all the answers

<p>To provide voluntary principles for greater transparency in SWF operations (B)</p> Signup and view all the answers

<p>A reduction in the international flow of capital (A)</p> Signup and view all the answers

<p>To ensure different industry sectors’ views are represented, especially to governments, and facilitate efficient market operations (D)</p> Signup and view all the answers

<p>Focusing on international bond dealing (A)</p> Signup and view all the answers

<p>Producing standards for OTC derivatives transactions (D)</p> Signup and view all the answers

<p>To provide investment administration services for other firms (D)</p> Signup and view all the answers

<p>More firms using outsourcing for investment administration (C)</p> Signup and view all the answers

<p>ESG (Environmental, Social, and Governance) (D)</p> Signup and view all the answers

<p>Reflecting the ethical, moral, religious or socially responsible beliefs of the client (C)</p> Signup and view all the answers

<p>Shariah investments (B)</p> Signup and view all the answers

<p>Integrating environmental and social factors into investment decision-making, encouraging longer-term investments (B)</p> Signup and view all the answers

<p>Financing initiatives in developing countries aimed at reducing emissions or adapting to climate change. (B)</p> Signup and view all the answers

<p>50% (C)</p> Signup and view all the answers

<p>Impact Investment (C)</p> Signup and view all the answers

<p>An increasing debate and concern about environmental and social matters. (B)</p> Signup and view all the answers

<p>Determining government spending budgets (D)</p> Signup and view all the answers

<p>To promote price stability and sustainable economic growth (C)</p> Signup and view all the answers

<p>Central banks operate independently of government control. (A)</p> Signup and view all the answers

<p>To offer emergency loans during financial crises (A)</p> Signup and view all the answers

<p>Issuing national debt instruments (B)</p> Signup and view all the answers

<p>Every six weeks or so (C)</p> Signup and view all the answers

<p>The rate at which banks lend to each other overnight (D)</p> Signup and view all the answers

<p>To ensure profitability of commercial banks (C)</p> Signup and view all the answers

Individuals who manage their own retirement savings through personal plans.

Financial professionals who manage portfolios of investments for others.

Retirement plans like pensions that make large investments in various financial assets, including shares, bonds, and cash.

Fund managers who manage investments on behalf of large organizations like pension funds and insurance companies.

Fund managers who work directly with individual clients to manage their investments.

Fees charged by fund managers for managing client investments, often based on a percentage of the fund value.

Professionals who execute stock market transactions on behalf of clients, including institutions and individual investors.

A financial professional who provides comprehensive wealth management services to clients, including investment advice, financial planning, and estate planning.

The financial services sector is crucial for both developed and developing countries, enabling the smooth flow of funds between savers and borrowers, ultimately contributing to economic growth and competitiveness.

The financial services sector acts as a bridge between individuals and businesses, facilitating the allocation of capital through investments.

The financial services sector connects savers who have money to invest with borrowers who need funds for growth and expansion.

Financial services ensure that capital is efficiently distributed to businesses that have the greatest potential for growth, leading to overall economic improvement.

The financial services sector plays a vital role in enhancing productivity and competitiveness within the global economy by facilitating the efficient allocation of capital.

Financial services help businesses grow by enabling them to access the capital they need from investors.

The efficiency of the financial services chain is essential for economic growth, as it ensures that capital is allocated to businesses that can utilize it effectively.

The financial services sector plays a critical role in connecting financial markets globally, and this interconnectedness has a significant impact on the world economy.

A state-owned investment fund that manages financial assets like stocks, bonds, real estate, and other financial instruments to achieve financial goals.

They invest in foreign financial assets with a focus on generating above-average returns.

They are typically funded by sources like trade surpluses, proceeds from privatisations, fiscal surpluses, and revenue from commodity exports.

They emerged as major global investors in the past decade, but their history dates back to oil-producing countries and countries with trade surpluses, like China.

Their immense funds under management are predicted to surpass US$10 trillion in coming years.

They are private investment vehicles with investment objectives that vary and are often not publicly disclosed.

They use their size and global diversification to invest in the best opportunities, manage risk, and stabilise their local economies.

Some SWFs are so wealthy that the term 'sovereign' doesn't necessarily mean public ownership.

Investments made by governments using their own funds, often for long-term economic goals.

Concerns regarding the transparency of SWFs relate to their size, investment strategies, and possible influence by political goals.

The potential impact of SWFs on the economies of recipient countries, leading to concerns about protectionist measures.

A voluntary set of principles established by the International Forum of Sovereign Wealth Funds to promote transparency and good governance.

Organizations representing various industry sections, especially in finance, to ensure cooperation and market efficiency.

Organizations specializing in investment administration services, often acting on behalf of other firms.

The growing trend of outsourcing investment administrative work to specialized firms.

The increasing use of TPAs reflects the growth and complexity of the investment industry.

A set of principles that consider environmental, social, and governance factors in investment decision-making.

Investments that align with ethical, moral, religious, or social values.

Investments that comply with Islamic financial principles.

Investments that focus on sustainability and environmental concerns.

A type of green finance that emphasizes environmentally and socially responsible projects, particularly in developing countries.

A broader concept encompassing investments that consider the long-term sustainability of projects and activities.

Investment banks provide various financial services to corporations and governments, including: Underwriting securities, Mergers & Acquisitions advisory, Trading and brokerage, Research.

Custodial services involve safekeeping and administrative tasks for securities and assets, ensuring their security and integrity.

The central bank of a nation, responsible for managing monetary policy and financial stability.

The rate at which commercial banks lend to each other overnight, set by the central bank as a tool for monetary policy.

The process of controlling the money supply in an economy by a central bank, often by adjusting the official interest rate.

The central bank's role as the lender of last resort, providing emergency loans to banks in crisis to prevent a systemic collapse.

The process where a central bank buys or sells government securities to influence the money supply and interest rates.

The central bank's role in accepting deposits from and lending to commercial banks, acting as their banker.

The central bank's responsibility for managing the government's debt, including issuing bonds and providing liquidity to the government.

The central bank's role in setting rules and regulations for commercial banks to ensure stability within the banking system.