36. What is the function of a pension fund?
a. Providing loans to individuals and businesses
b. Offering insurance coverage for retirement income
c. Investing contributions from employees for retirement benefits
d. Regulating interest rates in the banking sector
37. Which financial institution is responsible for regulating and supervising the securities industry in the United Kingdom?
a. Bank of England (BoE)
b. Financial Conduct Authority (FCA)
c. Prudential Regulation Authority (PRA)
d. HM Treasury
38. What is the purpose of a letter of credit in international trade?
a. Assessing the creditworthiness of importers and exporters
b. Providing insurance coverage for international shipments
c. Guaranteeing payment to exporters upon successful shipment of goods
d. Regulating foreign exchange transactions
39. What is the role of a hedge fund?
a. Providing insurance coverage for investment portfolios
b. Offering loans for real estate investments
c. Speculating on the price movements of stocks and derivatives
d. Regulating interest rates in the banking sector
40. Which of the following is a characteristic of a defined benefit retirement plan?
a. Fixed contribution amount from employees and employers
b. Employer-sponsored pension plan
c. Guaranteed income payments for retirees
d. Government-funded retirement program
