Investment Banking and Crowdfunding Concepts

Which of the following is NOT a typical service provided by investment banks?

Equity crowdfunding involves investors receiving their money back with interest.

What is the key difference between traditional financing and crowdfunding?

In __________ crowdfunding, investors receive a portion of ownership in the company.

Match the crowdfunding type with its description:

Which of the followings is one of the key ways by which individuals can make provision for retirement.

Investment banks only offer services related to corporate finance and do not engage in trading activities.

What role do investment banks play for companies considering a stock market launch?

What is the assumed relationship between interest rates and the level of spending in an economy?

Higher interest rates always lead to a decrease in aggregate spending.

Name two ways that higher interest rates could discourage spending.

Higher interest rates attract capital ______.

Match the following central banks with their respective regions:

Which action can governments take beyond fiscal policy to influence banks

In an increasingly integrated world, controlling the level of economic activity in an open economy in isolation is easily achievable.

What is a primary benefit for fund management groups using platforms?

What is the role of central banks in relation to government monetary policies?

Third-party administrators (TPAs) typically focus on core business activities such as investment management and stock selection.

What is the main rationale behind outsourcing investment administration to TPAs?

The investment industry requires cooperation between firms to ensure the views of various industry sections are represented, especially to government and _________.

Match the following organizations with their respective areas of focus:

Which organization represents nearly 300 leading firms providing finance, banking, markets, and payments-related services in the UK?

Trade and professional bodies in the investment industry primarily serve to create barriers to entry for new firms.

Name one of the former organizations that contributed to the creation of UK Finance.

What is a crucial consideration for the MPC when setting the base rate?

The effects of a base rate change on the economy are immediate across all sectors.

Name one of the three vital functions performed by the financial system in the economy.

The Financial Policy Committee (FPC) is tasked with monitoring the stability and ______ of the UK financial system.

Match the following entities with their responsibilities:

What was a significant failing identified as a result of the 2007-08 financial crisis?

FPC directions are non-binding suggestions for the PRA and FCA.

Which committee at the BoE helps monitor the stability and resilience of the UK financial system?

What is inflation defined as?

High levels of inflation always have a positive impact on an economy.

Name one potential negative consequence of high inflation.

Most Western governments aim to control inflation at around ______% per annum.

Which of the following is a potential benefit of inflation?

Deflation is generally considered a positive economic phenomenon.

Give an example of a country or region that has experienced deflation in recent years.

Match the term with its definition:

What event directly led to the creation of the Bank of England and the first issuance of state public debt in the UK?

A trade surplus indicates a worsening economic position, while a trade deficit indicates an improving one.

What is the most widely quoted debt measure related to government finances?

The shortfall between government tax receipts and spending is known as a ______.

Match the following financial terms with their descriptions:

Why are debt measures often presented as a percentage of GDP?

The national debt of the UK has consistently decreased since the 1700s.

What economic event led to a rapid increase in national debt exceeding £2 trillion?