ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes, I understand this from the notes
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No, I don’t understand this from the notes
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No, I don’t understand this, as I have not read the notes
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None of the above
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Detailed explanation-1: -There are two facets to financial regulation: prudential regulation and consumer protection: Prudential regulation: ensuring that firms have the funding necessary to trade safely and have the appropriate risk control in place and are properly governed.
Detailed explanation-2: -A Financial Market is referred to space, where selling and buying of financial assets and securities take place. It allocates limited resources in the nation’s economy. It serves as an agent between the investors and collector by mobilising capital between them.
Detailed explanation-3: -Regulation helps make sure that banks have good management so they don’t make bad investments or are too risky. An example of this is the Senior Managers Regime which makes sure that senior bankers are held accountable for their decisions.
Detailed explanation-4: -Principle 1: Financial service providers must be appropriately licensed or regulated, meaning that entry into the market must be subject to an appropriate licensing or registration process, depending on the type of financial services provided.