Download LIBF Unit 4 Topic 1 Quiz With Best Solutions 100% Verified and more Exams Nursing in PDF only on Docsity! LIBF Unit 4 Topic 1 Quiz With Best Solutions 100% Verified. The body responsible for strengthening business competition and preventing and reducing anti-competitive activities.Answer Competition and Markets Authority (CMA) People and organisations (eg companies) who lend money to and borrow from financial intermediaries (ie financial institutions such as banks).Answer Counterparties A mutual organisation (that is, owned by its members) that provides a range of financial products to members, eg savings accounts and personal loans. Members of a credit union must share a common bond, eg all work for the same employer or all work in the same district.Answer Credit Union The process of selling off parts of a company to make it smaller e.g. Lloyds sell-off that created new TSB branchesAnswer Divestment The organisation that regulates financial firms providing services to consumers, and maintains the integrity of the UK's financial markets.Answer Financial Conduct Authority (FCA) LIBF Unit 4 Topic 1 Quiz With Best Solutions 100% Verified. A financial institution that facilitates the exchange of funds between savers and spenders by taking in funds from savers and then lending those funds to borrowers and investorsAnswer Financial intermediary The process of taking in deposits from those with a surplus and lending those funds out of those who need to borrowAnswer Financial intermediation An independent body set up by Parliament that settles customer complaints about providers at no charge to consumersAnswer Financial Ombudsman Service (FOS) A part of the Bank of England that monitors and responds to risk posed to the entire financial services market. Its focus on the whole market makes it a macro- prudential authority.Answer Financial Policy Committee (FPC) A compensation scheme that pays compensation to account holders of up to a certain amount per provider if the provider goes into default (in other words cannot pay account holders the money they have in their accounts).Answer Financial Services Compensation Scheme LIBF Unit 4 Topic 1 Quiz With Best Solutions 100% Verified. Online marketplaces that enable people to lend to and borrow from each other without using a traditional financial institution such as a bankAnswer Peer-to- peer lenders One of the two main regulators of financial services in the UK (the other is the Financial Conduct Authority)Answer Prudential Regulation Authority (PRA) A professional who can only recommend certain types of product from one or a limited number of providers. They are not allowed to use the word 'independent' to describe their adviceAnswer Restricted financial adviser Banks that deal directly with consumers, for example providing current accounts and mortgagesAnswer Retail banks Separating the deposit-taking part of a bank or building society from the rest of its business so that, in the event of financial difficulties, the ring-fenced deposits of retail customers cannot be used to pay the debts of the most risky investment section of the bankAnswer Retain ring-fencing Financial markets where banks borrow over short periods (ie months, weeks or even days), especially from the interbank market, where banks with short-term LIBF Unit 4 Topic 1 Quiz With Best Solutions 100% Verified. surpluses lend to banks with short-term deficitsAnswer Short-term money markets