What is 'economic sustainability'?

Ensuring that economic activity continues in the long term

Prudential Regulation designed to stop providers failing, or failure having little impact. How?

Certain level of capital kept as deposit

What is an example of 'provider sustainability'?

A bank taking less risk even it means less profit

What does 'leverage' mean?

Amount of borrowing a company has in relation to its assets

What does the term 'conduct of business' mean?

The way in which a business is run

What does the term 'perilous debt' mean?

Half of someone's monthly income spent on paying off debt

What is 'environmental sustainability' mean?

Reducing negative acts of human activity on environment

What does 'deleveraging' mean?

Reducing the amount of debt in relation to assets

What does 'social sustainability' want to create in communities?

Foster well-being, peace, security and justice

What is 'financial contagion'?

Where debts works its way through global financial system

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Diploma in Finance Unit 4 topic 3 Sustainability in FS System

20 termsStudBud Administration11 plays

A revision quiz on Topic 3 key terms

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Questions 20

Answers

1
When providers do not protect themselves against risk because there are no consequences is?
Unethical practice
Moral hazard
Systemic risk
Unsustainable financial institutions
2
What term describes risk that affects an entire system as financial systems are interconnected?
Systemic risk
Perilous debt
Sustainable risk
financial contagion
3
What is 'economic sustainability'?
Repayment of loans
Not borrowing money
Ensuring that economic activity continues in the long term
Having large assets
4
What are the 'equator principles'?
Where someone spends more than half their income on debt
Cash or assets that can be easily converted into cash
Amount of borrowing a company has in relation to assets
Set of ethical benchmarks
5
Which UK bank suffered liquidation in 2008?
RBS
Northern Rock
Halifax
Metro Bank
6
Prudential Regulation designed to stop providers failing, or failure having little impact. How?
No regulation of the 'big five'
Certain level of capital kept as deposit
No deposit
FSCS backing
7
do liquid assets lose value of cash or assets?
Never
Don't know
Always
It can do
8
What reform was made to ensure sustainability and to ensure the mortgage market works better?
System risk
MMR
Moral Hazard
Leverage
9
What is an example of 'provider sustainability'?
Provider using renewable energy
Providers increasing prices to make more profit
Providers facing large risks
A bank taking less risk even it means less profit
10
Which of these financial providers were in a moral hazard during the financial crisis?
RBS
Barclays
Santandar
HSBC
11
What does 'leverage' mean?
Amount of assets a company has
Amount of debt
Amount of borrowing a company has
Amount of borrowing a company has in relation to its assets
12
Who is not involved in financial provider stakeholder groups?
Customer
Shareholders
Competitiors
Employees
13
What does the term 'conduct of business' mean?
Long term goals
The way in which a business is run
Mission Statement
Ethics behind a business
14
What does the term 'perilous debt' mean?
Half of someone's monthly income spent on paying off debt
Most of someone's monthly income is spent on paying debt
No debt
All of someone's monthly income is spent on paying off debt
15
What is 'environmental sustainability' mean?
Cash or assets that can be easily turned into cash
Reducing negative acts of human activity on environment
Amount of borrowing a company has in relation to its assets
Improving positive acts of human activity on the environent
16
What does 'deleveraging' mean?
A type of bank
Reducing the amount of debt in relation to assets
A way a business may decrease in size
Amount of borrowing a company has
17
What does 'social sustainability' want to create in communities?
Career advice, peace and jobs
Meet long-term requirements financially for a community
Building a community that helps future generations
Foster well-being, peace, security and justice
18
People who buy and sell the shares of many companies for quick profits are known as?
Investors
Stock brokers
Speculators
Shareholders
19
What is 'financial contagion'?
Where debt works its way through a bank
Where debt works it way through a family
Where debt works it way through the UK financial system
Where debts works its way through global financial system
20
Ethical Lending lends funds to:
Tobacco firms
Animal testing
Gun violence
Green technology

Diploma in Finance Unit 4 topic 3 Sustainability in FS System Flashcards | StudBud