Unit 3 Topic 6

Outsourcing is:

• the process of one provider paying another to carry out certain functions that it would normally do itself

• the practice of moving some of a company's operational functions to overseas locations

• bringing some of the functions that had been moved overseas back to the UK

The relationship between sterling and interest rates means that:

• if interest rates rise, demand for sterling falls

• if interest rates rise, demand for sterling is unaffected

• if interest rates rise, demand for sterling rises

Gross domestic product (GDP) measures a country's economic activity by reference to its:

• total output of goods and services, usually measured at their market prices

• total of imports and exports, usually measured at their market prices

• total output of goods and services, usually measured at their production costs

In times of economic uncertainty:

• lenders make it easier for businesses and individuals to take out loans and mortgages

• individuals tend to move their investments into gilts or corporate bonds

Once a country has joined the euro it:

• follows the ECB's fiscal policy

• no longer sets its own interest rates

• closes down its central bank

An increase in UK interest rates may lead to:

• a fall in consumer spending

• an increase in consumer spending

• more demand for UK goods and services

A fall in the price of oil is:

• good for the UK's finances

• bad for the UK's finances

• has no real impact on the UK's finances

Extreme weather, especially flooding, has led to an increase in:

• car insurance prices

• home insurance prices

• pet insurance prices

• tattoos

Who has a duty to check the accuracy of a company's accounts?

• The compliance manager

• The auditors

• The board of directors

Delivering digital and financial education to those most excluded from financial services is an example of:

• corporate social responsibility

• environmental ethics

• product sustainability