Unit 4 Topic 2

Which of the following has the largest amount of influence in the retail banking sector?

• Commercial banks

• Customers

• Small to medium-sized enterprises

A benefit of effective competition is that:

• customers will always get the best deal from their bank

• customers no longer have to shop around

• customers have more choice

The Financial Services Consumer Panel aims to:

• represent the interests of consumers and aid effective regulation

• educate consumers about financial products and services

• resolve consumer complaints without resorting to the ombudsman

A market which is dominated by a small number of very large firms is called:

• a duopoly

• an oligopoly

• a monopoly

An example of wasteful competition is:

• developing a product for a newly identified market sector

• creating a product with innovative new features

• developing and marketing a product almost identical to that offered by competitors

An example of a 'challenger bank' is:

• Metro Bank

• Lloyds

• RBS

The Current Account Switch Service enables clients to switch their current account provider in just:

• 5 days

• 7 days

• 10 days

In relation to competition, the FCA sees its role as being:

• to protect the interests of specific competitors

• to be the leading competition agency

• to protect and promote competition in general

The Competition and Markets Authority (CMA) investigates mergers that could:

• improve competition

• contribute to economic growth

• restrict competition

When choosing a pension scheme, it is most sensible to discuss the decision with:

• an independent financial adviser

• a bank cashier

• a friend or relative