Flashcards
Cemap1 Unit 1&2
Flashcards do conjunto (19)
- 1Why do people use financial intermediaries?1.Maturity Transformation
2.Aggregation
3. Risk Transformation
4.Geographic Location - 2What does maturity transformation mean?Intermediaries can offer a wide range of deposit accounts to a wide range of depositors, ensures funds aren't all withdrawn at same time.
- 3What jobs does the Bank of England do?UK's central bank
Issuer of bank notes
Banker to banks and government
lender of last resort
foreign exchange market
adviser to the government. - 4What is a propriety organisation? Give an exampleAn organisation run for the benefit of their shareholders
e.g. a bank - 5Income Tax 16/17Personal allowance £11,000
Basic rate 20% £11,000-£43,000
Higher rate 40% £43,001-£150,000
Additional rate 45% over £150,000 - 6Classes of national insuranceClass1=Employees’ and employers’ contributions
Class2=Self-employed flat rate contributions
Class3=Voluntary contributions
Class4=Self-employed profit-related contributions - 7Capital Gains 16/17Allowance- £11,100
10% or 20%, depending on your tax band, except for second homes- where rates remain 18% and 28% - 8Inheritance TaxNil rate band- £325,000
40% - 9Potentially Exempt Transfers0-3 years = 40%
3-4 = 32%
4-5 = 24%
5-6 = 16%
6-7 = 8% - 10Key Recommendations of the independent commission on banking.UK retial ring fencing
Capital
Bail in and depositor preference
Competition
Structural reform - 11What does UK retail ring fencing mean?separating retail banking from investment banking, to safeguard against riskier banking activities.
- 12What does bail in and depositor preference mean?Statutory power to recapitalise banks.
- 13Name the money transmission processesCash & ATM's
Current accounts & basic bank accounts
cheques
debit cards
direct debits and standing orders
Credit transfers. - 14The tiers of financial regulation in the UK1st European legislation
2nd acts of Parliament
3rd regulatory bodies
4th financial institutions themselves
5th arbitration schemes which customers complaints can be directed. - 15Types of deposit based investments.Bank Building society accounts
Cash ISA's
Offshore accounts
NS&I products - 16Why do people use deposit based investments?capital invested remains intact
rainy day fund
easily accessible
short-term savings - 17What are GILTS?Issued by government to raise money,
Low risk investment as the the government won't default on the interest or the capital return. - 18How do gilts work?Coupon - Interest paid half yearly
Redemption date - when government buys back
Par Value - what government will pay on the redemption date. - 19What are local authority stocks?Similar to gilts
From local authority
Can't be sold on open market
don't carry government guarantee
interest paid half yearly net of 20% tax
Informações
- Descrição
- Certificate Cemap FlashCards sobre Cemap1 Unit 1&2, criado por Dayle Watson em 17-04-2016.
- Criado por
- Dayle Watson
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