DIPFS U4 SPECIMEN C 11-20

Financial sustainability can be said to focus on three key elements. These are:

• bank, regulatory and policy.

• capital, liquidity and reserves.

• customers, staff and suppliers.

• environmental, social and economic.

A provider's reputation is partly affected by:

• changing regulations.

• corporate behaviour.

• government spending.

• increasing competition.

Reports that are not influenced by media bias are:

• incomplete.

• misleading

• objective.

• one sided.

Financial services providers attempt to manage how they are reported in the media through:

• direct sales.

• human resources.

• newspaper management.

• public relations.

The media plays an important role in acting as a watchdog for consumers. In performing this role, the media mostly:

• encourages financial exclusion.

• helps banks to undertake segmentation.

• implements fines for poor service.

• reports examples of bad practice.

Direct selling refers to sales that happen directly between the consumer and the provider:

• through a mobile phone only.

• through the internet only.

• when there is personal face-to-face contact.

• without the intervention of an intermediary.

Which of the following is an external influence that has had the greatest impact on the financial services industry in recent years?

• Changing regulation.

• Closing branches.

• Making staff redundant.

• Reducing bank budgets.

Which of the following is an economic factor which impacts on the financial services industry and its customers?

• Advertising.

• Increasing competition.

• Interest rates.

• Technological advancements.

Which of the following is an external factor that has influenced new ways of operating and delivering products?

• Changes in management.

• Company policy.

• New staff.

• Technology.

When undertaking PESTEL analysis, changes in demographics are part of which of the following?

• The economic environment.

• The political environment.

• The social environment.

• The technological environment.