Global Financial Centres Index 2022
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Questions and Answers

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?

    <p>Government, supranational or corporate debt</p> Signup and view all the answers

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

    <p>New York</p> Signup and view all the answers

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

    <p>Z/Yen</p> Signup and view all the answers

    What is the primary goal of pension investments?

    <p>To provide a pension on retirement</p> Signup and view all the answers

    What is another term for fund management?

    <p>Asset management</p> Signup and view all the answers

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

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

    What do institutional fund managers typically work on behalf of?

    <p>Institutions, such as companies and insurance companies</p> Signup and view all the answers

    Why do fund managers charge their clients?

    <p>For managing their money</p> Signup and view all the answers

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

    <p>Institutional portfolios tend to be larger</p> Signup and view all the answers

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

    <p>To control inflation and prevent overheating</p> Signup and view all the answers

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

    <p>The influence of financial markets on economic policy</p> Signup and view all the answers

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

    <p>To serve central banks in their pursuit of monetary and financial stability</p> Signup and view all the answers

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

    <p>95%</p> Signup and view all the answers

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

    <p>They operate at the very centre of the financial system</p> Signup and view all the answers

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

    <p>Bank for International Settlements (BIS)</p> Signup and view all the answers

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

    <p>Developing policies for aviation, burglary and cybercrime</p> Signup and view all the answers

    What is the purpose of reinsurance companies?

    <p>To protect insurers against unforeseen risks</p> Signup and view all the answers

    What can a reinsurance contract cover?

    <p>Either single risks or entire insurance portfolios</p> Signup and view all the answers

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

    <p>Hospitals</p> Signup and view all the answers

    What do insurers use to protect themselves against unforeseen risks?

    <p>Reinsurance companies</p> Signup and view all the answers

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

    <p>To share some or all of the premiums and losses with the insurer</p> Signup and view all the answers

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

    <p>To calculate the rate of inflation</p> Signup and view all the answers

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

    <p>Regularly, but the exact frequency is not specified</p> Signup and view all the answers

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

    <p>An index of 100</p> Signup and view all the answers

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

    <p>To reflect the importance of each item in a typical household budget</p> Signup and view all the answers

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

    <p>A revised index number</p> Signup and view all the answers

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

    <p>Detailed expenditure information from families and individuals</p> Signup and view all the answers

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