How financial services work

Which bests describes a bank

• Owned by its members with the intention of reinvesting profits for the benefit of members
• Owned by shareholders with the purpose of maximising profits
• Provide unbiased financial advice on a range of financial products such as loans, mortgages, pensions etc
• Are mainly focussed on selling insurance products

What's the maximum amount of money you can put in savings with a friendly society as a lump sum each year?

• £250
• £270
• £350
• £370

Which of the following statements is not true about building societies

• Are owned by the members
• Members share in any profits
• Offer slightly better interest rates than banks
• Offer same financial products as banks

Which type of financial service best describes an example of disintermediation

• Crowdfunding
• Friendly society
• Insurance provider
• HSBC

Which financial service is controlled by members, are not-for-profit and offer tax free savings

• Credit Union
• Banks
• Building societies
• Friendly societies

What best describes a log-book loan

• An unsecured form of lending
• A secured form of lending
• Interest free lending
• Extortionately high interest lending

Which of the following is not a feature of a friendly society

• Tax-free savings
• Life insurance on all savings accounts
• Only offer savings accounts
• High risk

Which feature of Handselbank differs from normal banks

• They only operate online
• They offer different financial products
• They offer restricted financial advice

• Decision-making is de-centralised

Lloyd's of London specialise in which area

• Insurance
• Pensions
• Mortgages
• Loans

Which of the following is not true regarding a credit union?

• Members will receive income support if can't work and get life insurance for being a member
• They are people-oriented and run by its members
• Offer similar products to banks and building societies
• Are not-for-profit