LIBF Unit 4 2026 Exam
Questions and Verified Answers
| Already Graded A+
competition and markets authority - 🧠ANSWER ✔✔The body responsible
for strengthening business competition and preventing and reducing anti-
competitive activities.
counterparties - 🧠ANSWER ✔✔People and organisations (eg companies)
who lend money to and borrow from financial intermediaries (ie financial
institutions such as banks)
,divestment - 🧠ANSWER ✔✔The process of selling off parts of a company
to make it smaller, eg the Lloyds sell-off that created new TSB branches.
financial intermediary - 🧠ANSWER ✔✔A financial institution that facilitates
the process of lending and borrowing, by taking deposits from those with a
surplus and lending those funds out to those who need to borrow.
financial intermediation - 🧠ANSWER ✔✔The process of taking in deposits
from those with a surplus and lending those funds out to those who need to
borrow (see financial intermediary).
financial policy committee - 🧠ANSWER ✔✔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.
Financial Conduct Authority (FCA) - 🧠ANSWER ✔✔The organisation that
regulates financial firms providing services to consumers, and maintains
the integrity of the UK's financial markets.
Preduntail regulation authority - 🧠ANSWER ✔✔Regulate and supervise of
under ideal services (including banks, building society's, credit unions &
insures)
, friendly society - 🧠ANSWER ✔✔A mutual organisation that offers its
members a wide range of financial products, which can include savings,
investments, insurance, pensions and annuities.
Credit unions - 🧠ANSWER ✔✔cooperative associations whose members
are supposed to have a common bond, such as being employees of the
same firm
Who regulate credit unions - 🧠ANSWER ✔✔PRA & FCA
What are the catergories of insurance - 🧠ANSWER ✔✔individual insurance
companies and Lloyd's insurance market.
hm treasury - 🧠ANSWER ✔✔Her Majesty's (HM) Treasury, the government
department responsible for development and implementation of financial
and economic policy.
investment banks - 🧠ANSWER ✔✔Banks that raise funds on the financial
markets, rather than accepting deposits as a retail bank does. They use
these funds to provide special services to large corporations and to
governments. Also known as wholesale banks.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
Questions and Verified Answers
| Already Graded A+
competition and markets authority - 🧠ANSWER ✔✔The body responsible
for strengthening business competition and preventing and reducing anti-
competitive activities.
counterparties - 🧠ANSWER ✔✔People and organisations (eg companies)
who lend money to and borrow from financial intermediaries (ie financial
institutions such as banks)
,divestment - 🧠ANSWER ✔✔The process of selling off parts of a company
to make it smaller, eg the Lloyds sell-off that created new TSB branches.
financial intermediary - 🧠ANSWER ✔✔A financial institution that facilitates
the process of lending and borrowing, by taking deposits from those with a
surplus and lending those funds out to those who need to borrow.
financial intermediation - 🧠ANSWER ✔✔The process of taking in deposits
from those with a surplus and lending those funds out to those who need to
borrow (see financial intermediary).
financial policy committee - 🧠ANSWER ✔✔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.
Financial Conduct Authority (FCA) - 🧠ANSWER ✔✔The organisation that
regulates financial firms providing services to consumers, and maintains
the integrity of the UK's financial markets.
Preduntail regulation authority - 🧠ANSWER ✔✔Regulate and supervise of
under ideal services (including banks, building society's, credit unions &
insures)
, friendly society - 🧠ANSWER ✔✔A mutual organisation that offers its
members a wide range of financial products, which can include savings,
investments, insurance, pensions and annuities.
Credit unions - 🧠ANSWER ✔✔cooperative associations whose members
are supposed to have a common bond, such as being employees of the
same firm
Who regulate credit unions - 🧠ANSWER ✔✔PRA & FCA
What are the catergories of insurance - 🧠ANSWER ✔✔individual insurance
companies and Lloyd's insurance market.
hm treasury - 🧠ANSWER ✔✔Her Majesty's (HM) Treasury, the government
department responsible for development and implementation of financial
and economic policy.
investment banks - 🧠ANSWER ✔✔Banks that raise funds on the financial
markets, rather than accepting deposits as a retail bank does. They use
these funds to provide special services to large corporations and to
governments. Also known as wholesale banks.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
