central banking (L15) Flashcards
1
Q
central bank
A
providing banking services to commercial banks
conducts monetary policy
regulates the financial system
lender of last resort
2
Q
how does bank of england influence the economy
A
interest rates on banks reserves
changes in balance sheet
owns assets and owes liabilities
3
Q
assets of central bank
A
loans to banks gov bonds
4
Q
liabilities of central bank
A
currency in circulation, reserves
5
Q
monetary base
A
currency in circulation + reserves of banks at BoE
6
Q
monetary base
A
central bank money:
it allows banks to pay each other
helps banks meet withdrawals
7
Q
how can BoE influence money supply
A
open market operations
buying/selling gov bonds
transacting with commercial banks
