30 Questions
What is the primary purpose of the Global Financial Centres Index?
To rank and assess the competitiveness of major financial centres
Which of the following is NOT a key area of competitiveness in the Global Financial Centres Index?
Economic growth
What is the primary difference between the wholesale and retail sectors in the financial services sector?
The target customers
What is traded in bond markets?
Government, supranational or corporate debt
Which city ranked first in the Global Financial Centres Index 30?
New York
What is the name of the organization that produces the Global Financial Centres Index?
Z/Yen
What is the primary goal of pension investments?
To provide a pension on retirement
What is another term for fund management?
Asset management
What is the estimated size of the global asset management industry?
Over US$90 trillion
What do institutional fund managers typically work on behalf of?
Institutions, such as companies and insurance companies
Why do fund managers charge their clients?
For managing their money
What is the typical difference between institutional and private client portfolios?
Institutional portfolios tend to be larger
What is the primary goal of 'tight' monetary policy?
To control inflation and prevent overheating
What is the main challenge of controlling economic activity in an open economy?
The influence of financial markets on economic policy
What is the primary mission of the Bank for International Settlements (BIS)?
To serve central banks in their pursuit of monetary and financial stability
What percentage of world gross domestic product (GDP) is represented by the BIS member central banks?
95%
What is the role of central banks in a nation's financial system?
They operate at the very centre of the financial system
What is the name of the institution that guides central banks in their activities?
Bank for International Settlements (BIS)
What is Lloyd's known for in the insurance industry?
Developing policies for aviation, burglary and cybercrime
What is the purpose of reinsurance companies?
To protect insurers against unforeseen risks
What can a reinsurance contract cover?
Either single risks or entire insurance portfolios
Which of the following is NOT a type of organisation in the financial services sector?
Hospitals
What do insurers use to protect themselves against unforeseen risks?
Reinsurance companies
What is the role of a reinsurer in a reinsurance contract?
To share some or all of the premiums and losses with the insurer
What is the primary purpose of collecting price data on a typical 'shopping basket' of goods and services?
To calculate the rate of inflation
How often is the content and weighting of the 'shopping basket' reviewed?
Regularly, but the exact frequency is not specified
What is the base year for the total cost of the 'shopping basket' converted into?
An index of 100
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
What is the outcome of recalculating the cost of the 'shopping basket' on a monthly basis?
A revised index number
What is the primary source of data used to develop the 'shopping basket'?
Detailed expenditure information from families and individuals
Test your knowledge of the Global Financial Centres Index 2022, which ranks 111 major financial centres based on five areas of competitiveness. Evaluate your understanding of the top financial centres and their competitiveness.
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