Investment Banking and Crowdfunding Concepts

False (B)

Traditional financing involves asking a few people for large sums of money whereas crowdfunding raises small amounts of money from a large number of people.

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

<p>Donation crowdfunding = People simply believe in the cause or innovation. Debt crowdfunding = Investors receive their money back with interest. Equity crowdfunding = People invest in exchange for equity or shares in the venture.</p> Signup and view all the answers

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

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

<p>Investment banks provide advice and arrange financing for companies that want to float on a stock market.</p> Signup and view all the answers

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

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

<p>Higher mortgage payments, higher cost of credit</p> Signup and view all the answers

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

<p>Bank of England = United Kingdom Federal Reserve = United States European Central Bank = Eurozone</p> Signup and view all the answers

<p>Impose reserve requirements (D)</p> Signup and view all the answers

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

<p>Ability to distribute their products to financial advisors (C)</p> Signup and view all the answers

<p>Implement monetary policies</p> Signup and view all the answers

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

<p>allows firms to focus on core business areas and fix costs.</p> Signup and view all the answers

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

<p>ICMA = Bonds FIA Europe = Derivatives IA = Fund managers ABI = Insurance companies</p> Signup and view all the answers

<p>UK Finance (A)</p> Signup and view all the answers

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

<p>British Bankers' Association</p> Signup and view all the answers

<p>The impact on the sustainability of economic growth and employment (D)</p> Signup and view all the answers

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

<p>Providing the main mechanism for paying for goods, services and financial assets / Intermediating between savers and borrowers, and channelling savings into investment / Insuring against and dispersing risk</p> Signup and view all the answers

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

<p>Financial Policy Committee (FPC) = Monitoring systemic risk and issuing directions/recommendations. Prudential Regulation Authority (PRA) = Supervising banks and key market infrastructure firms. Financial Conduct Authority (FCA) = NOT mentioned in the text</p> Signup and view all the answers

<p>No single institution had the overall responsibility, authority, or powers to oversee the financial system as a whole. (B)</p> Signup and view all the answers

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

<p>Financial Policy Committee (FPC)</p> Signup and view all the answers

<p>A persistent increase in the general level of prices. (B)</p> Signup and view all the answers

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

<p>Erosion of real salary value</p> Signup and view all the answers

<p>2-3</p> Signup and view all the answers

<p>Erosion of the real value of national debt (C)</p> Signup and view all the answers

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

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

<p>Inflation = Persistent increase in the general level of prices Deflation = A general fall in price levels GDP = Measure of economic activity Economic growth = Increase in the level of goods and services produced by an economy</p> Signup and view all the answers

<p>Government's need to finance a war with France (A)</p> Signup and view all the answers

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

<p>Public sector net debt</p> Signup and view all the answers

<p>budget deficit</p> Signup and view all the answers

<p>National Debt = Total amount of a country's outstanding financial liabilities or government debt. Budget Deficit = The amount by which a government's spending exceeds its revenue in a fiscal year. GDP = The monetary value of all finished goods and services made within a country during a specific period.</p> Signup and view all the answers

<p>To account for inflation over time and allow for better comparisons (A)</p> Signup and view all the answers

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

<p>COVID-19 pandemic</p> Signup and view all the answers

Minimum cash reserves that banks must hold.

The cost of borrowing money or the price of money.

Total spending in the economy at a given time.

Discourages spending and borrowing, could increase savings.

Business expenditures on capital goods.

Institutions that manage monetary policy and currency.

Combining fiscal and monetary policy for economic control.

Central bank actions to influence money supply and interest rates.

Funding a project by raising small amounts from many people.

Raising money where people give without expecting returns.

Investors lend money expecting interest repayment.

Investors provide capital in exchange for ownership shares.

Institutions that advise and arrange financing for companies.

Advising on securities for raising finance, mergers, and acquisitions.

Investment pools designed to provide retirement income.

Buying and selling financial instruments like stocks and bonds.

The shortfall between government tax receipts and spending.

Total amount of money that the government owes to creditors.

What the government owes minus financial assets.

Public Sector Net Cash Requirement, measuring shortfall in cash terms.

When a country's exports exceed its imports.

A way to compare debt levels relative to the country's economic output.

The national debt rose significantly due to wars and crises throughout history.

Established in 1694 to manage public debt and finance wars.

A persistent increase in the general level of prices in the economy.

Excess demand, resource scarcity, or increasing government spending can trigger inflation.

Most Western governments aim for inflation around 2-3% per year.

High inflation erodes salary value, complicates pricing for businesses, and affects fixed income earners.

High inflation can lead to rising house prices and reduce real debt value for borrowers.

A general fall in price levels that can worsen economic conditions.

Deflation can lead to high unemployment and worsen economic recessions.

A summary of all a country’s transactions with the rest of the world.

The influence of MPC's rate changes on economic growth and employment.

The delay between a change in base rate and its economic impacts.

The condition where the financial system effectively functions without excessive risk.

Paying for goods, intermediating savings, and managing risk.

A committee at the BoE monitoring financial stability and risks.

FPC's binding instructions to regulatory bodies like PRA and FCA.

FPC suggestions to regulators that are not obligatory but need explanation if not followed.

The BoE division overseeing banks and key market firms.

Platforms that distribute investment products to financial advisers.

Firms that perform investment administration for other companies.

The practice of hiring outside firms for specialized tasks.

Key functions that a firm focuses on for success.

Organizations that represent the interests of firms in the investment industry.

An industry characterized by constant change and evolution.

A trade body for the bonds market.

An organization representing major UK finance and banking firms.