CH2 - ECON

Question 1

What is the role of the Monetary Policy Committee?

Answer 1

They ensure that inflation is kept within a Government set-range.

Question 2

How many members are on the Monetary Policy Committee?

Answer 2

9

Question 3

What is the PRA?

Answer 3

Prudential Regulation Authority. Supervision of banks and key market infrastructure such as Euroclear.

Question 4

Who operates the depositors protection scheme?

Answer 4

FSCS (Financial Services Compensation Scheme)

Question 5

What does a Central Bank do?

Answer 5

Acts as the banks and the governments banker.
Sets the official short-term interest rate.

Question 6

What is the difference between CPI and RPI?

Answer 6

Just a different manner of calculating, RPI being phased out.

Question 7

How is the Balance of Payments calculated?

Answer 7

Net Exports - Net Imports

Question 8

What does PSNCR mean?

Answer 8

Public Sector Net Cash Requirement. This is a shortfall between what the government receives in tax and what it spends.

Question 9

What is an exchange rate regime?

Answer 9

During times of crisis the Government might support the currency by setting fixed rates, or target zones.