professional banker certificate

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universal bank
banking that provides related financial services of various kinds. Commercial banking-taking deposits and making loans.
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retail banking
taking deposits from and lending to individuals.
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business banking
involves similar activities as retail- but customers are small-medium sized businesses.
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wholesale banking
borrowing and lending to large corporate clients (governments/other banks etc.)
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investment banking
provides advice on mergers and acquisitions, buying shares and bonds and managing investments and share portfolios for customers
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creditor
customers who deposit money
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debtor
customers who the bank lends money to.
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financial intermediation
process of pooling funds from different sources and using these to provide loans and make investments.
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bancassurance
- insurance companies that are subsidiaries of banks and building societies.
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assets
- money a bank lends appears as assets on the balance sheet.
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liabilities
money deposited by customers appears as liabilities on the balance sheet.
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building society
Financial institution that offers savings accounts and mortgages as its main business. Recently they have diversified and now offer a wide range of products.
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credit unions
- mutual savings and loan societies providing basic low-cost banking service.
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general insurance
provides cover against certain greed risks such as a fire which may occur during a specified time period. Concerned with the probability of something happening.
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life assurance
provides payment of a benefit on an occurrence such as death, or survival to a particular date, which will take place but the time of which is uncertain. Concerned with the certainty of something happening.
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term assurance
Company pays a benefit only if the person dies within a specified time.
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whole of life assurance
the company promises to pay a sum of money when the person dies, which is useful for providing protection for dependents.
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endowment assurance
company pays the benefits of the policy at an agreed date when the policy matures or earlier, on the death of the person. Benefits may be a lump sum or an annual sum to be paid for a specified number of years.
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annuities
concerned with survival benefits. On survival to a certain age, the benefits are paid to the person either in a lump sum or as a guaranteed life income.
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pension insured schemes
pension contributions are paid to a company which guarantees the future pensions. The assurance fund is responsible for investing the funds and carries the risk.
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pension self-administrated scheme
the pension fund itself carries the risk and is responsible for the level of pensions paid.
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defined contribution schemes
personal pension plan- the maximum pension which can be received in a final salary/ defined benefit is two thirds of final salary which is reduced if a lump sum is paid
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investment trust
public limited companies where the business is an investment
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unit trust
a trust in the legal sense- resources are pooled from many different people from its open- ended pool. The funds are placed in a wide range of investments.
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OEIC
- open ended investment company- no limits to the number of units that can be created.
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fiscal policy
government spending activities. To do this the government must collect money in, through taxes and borrowing funds.
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monetary policy
the government/central bank seeks to control the price and supply of money circulating in the economy. Interest rates and inflation rates for example
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budget deficit
if the government spends more than it collects.
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budget surplus
- if the government spends less than it collects
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Other cards in this set

Card 2

Front

taking deposits from and lending to individuals.

Back

retail banking

Card 3

Front

involves similar activities as retail- but customers are small-medium sized businesses.

Back

Preview of the back of card 3

Card 4

Front

borrowing and lending to large corporate clients (governments/other banks etc.)

Back

Preview of the back of card 4

Card 5

Front

provides advice on mergers and acquisitions, buying shares and bonds and managing investments and share portfolios for customers

Back

Preview of the back of card 5
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