Global Financial Centres Index 2022

What is the primary purpose of the Global Financial Centres Index?

To rank and assess the competitiveness of major financial centres (correct)
To compare the retail and wholesale financial markets
To evaluate the financial sector's structure and participants
To analyze the differences between government and corporate debt

Which of the following is NOT a key area of competitiveness in the Global Financial Centres Index?

Economic growth (correct)
Business environment
Reputation
Financial sector development

What is the primary difference between the wholesale and retail sectors in the financial services sector?

The geographical location
The target customers (correct)
The size of the financial institutions
The type of financial products offered

What is traded in bond markets?

Government, supranational or corporate debt (B) Signup and view all the answers

Which city ranked first in the Global Financial Centres Index 30?

New York (C) Signup and view all the answers

What is the name of the organization that produces the Global Financial Centres Index?

Z/Yen (D) Signup and view all the answers

What is the primary goal of pension investments?

To provide a pension on retirement (B) Signup and view all the answers

What is another term for fund management?

Asset management (D) Signup and view all the answers

What is the estimated size of the global asset management industry?

Over US$90 trillion (C) Signup and view all the answers

What do institutional fund managers typically work on behalf of?

Institutions, such as companies and insurance companies (B) Signup and view all the answers

Why do fund managers charge their clients?

For managing their money (B) Signup and view all the answers

What is the typical difference between institutional and private client portfolios?

Institutional portfolios tend to be larger (C) Signup and view all the answers

What is the primary goal of 'tight' monetary policy?

To control inflation and prevent overheating (C) Signup and view all the answers

What is the main challenge of controlling economic activity in an open economy?

The influence of financial markets on economic policy (B) Signup and view all the answers

What is the primary mission of the Bank for International Settlements (BIS)?

To serve central banks in their pursuit of monetary and financial stability (D) Signup and view all the answers

What percentage of world gross domestic product (GDP) is represented by the BIS member central banks?

95% (B) Signup and view all the answers

What is the role of central banks in a nation's financial system?

They operate at the very centre of the financial system (C) Signup and view all the answers

What is the name of the institution that guides central banks in their activities?

Bank for International Settlements (BIS) (B) Signup and view all the answers

What is Lloyd's known for in the insurance industry?

Developing policies for aviation, burglary and cybercrime (C) Signup and view all the answers

What is the purpose of reinsurance companies?

To protect insurers against unforeseen risks (D) Signup and view all the answers

What can a reinsurance contract cover?

Either single risks or entire insurance portfolios (C) Signup and view all the answers

Which of the following is NOT a type of organisation in the financial services sector?

Hospitals (D) Signup and view all the answers

What do insurers use to protect themselves against unforeseen risks?

Reinsurance companies (B) Signup and view all the answers

What is the role of a reinsurer in a reinsurance contract?

To share some or all of the premiums and losses with the insurer (A) Signup and view all the answers

What is the primary purpose of collecting price data on a typical 'shopping basket' of goods and services?

To calculate the rate of inflation (C) Signup and view all the answers

How often is the content and weighting of the 'shopping basket' reviewed?

Regularly, but the exact frequency is not specified (A) Signup and view all the answers

What is the base year for the total cost of the 'shopping basket' converted into?

An index of 100 (A) Signup and view all the answers

What is the purpose of assigning different weights to various items in the 'shopping basket'?

To reflect the importance of each item in a typical household budget (A) Signup and view all the answers

What is the outcome of recalculating the cost of the 'shopping basket' on a monthly basis?

A revised index number (A) Signup and view all the answers

What is the primary source of data used to develop the 'shopping basket'?

Detailed expenditure information from families and individuals (A) Signup and view all the answers