Monetary Policy & Currencies
What entity controls monetary policy in the UK?
Bank of England
What is the primary regulatory authority of markets in the UK?
Financial Conduct Authority/The UK Listing Authority
What is the most active equity trading platform in Europe and what is its main index?
London Stock Exchange and FTSEs
Does the financial environment in the UK cater more accommodative to debt or equity raising? (assuming company is not distressed and has positive cash flow)
Debt.
True or False: The Bank of England is the only bank in the UK that can issue notes
False: BoE only issues notes for England and Whales while The Bank of Scotland, RBS and Clydesdale bank service Scotland. Notes in Northern Ireland are issued by Bank of ireland, First Trust Bank, Danske Bank and Ulster Bank.
What currency does the UK use and is it worth more or less than 1 USD?
The pound.
Worth more (GBP/USD 1.29USD)
How did the UK respond to the the 2008 financial crisis?
Lots of regulation! (Answer can be anything that relates to the acts)
What is the purpose of offering different markets on the same exchange and what are the London Stock Exchange’s two primary markets?
The purpose is to give a wider range of companies the opportunities to raise capital. The Main Market and the AIM are the two primary markets on the LSE.
What form of debt (e.g. bank loan, institutional loan, bonds, mezz financing etc.) is most widely available to EU companies raising capital domestically?
Bank loans
Name 1 company listed on the FTSE 100 index
A few well-known companies include: Royal Dutch Shell, Unilever, Tesco, BP, HSBC, Barclays
Name at least two monetary policy tools of the BoE
Open markets operations, Quantitative easing, changing bank interest rate
How will financial regulations be impacted by Brexit?
Multiple Answers --> Will be discussed
Are listing requirements more or less strict on the London Stock Exchange than the New York Stock Exchange and what are some differences?
Requirements are more simple and slightly less strict, but the process of listing is more guided by the UKLA
Why would banks issuing debt and not syndicating it potentially limit the amount of capital available for firms?
Banks can only hold so much debt on their balance sheets due to regulation
What century was the LSE founded?
16th century by queen Elizabeth I of England