key words topic 6

Question 1

Commodity

Answer 1

Goods that share the same characteristics wherever they are produced and whoever produces them – unlike a manufactured product, where different manufacturers can add specific features. Examples include raw materials such as iron ore, gold and silver, or agricultural produce such as wheat and rice.

Question 2

Corporate bond

Answer 2

A product that companies can use to borrow money over periods of five years or more. The company offers a number of bonds for sale; buyers can then sell the bonds on to other investors if they wish. A key difference between bonds and shares is that bondholders do not own a share in the company.

Question 3

Emerging market

Answer 3

A nation in the process of rapid economic growth and involvement in international trade.

Question 4

European
Commission

Answer 4

The executive body of the European Union responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and day- to-day running of the EU.

Question 5

Gross domestic
product (GDP)

Answer 5

The value of all the goods and services produced within a country over a year.

Question 6

International Monetary Fund

Answer 6

An international body of 190 countries that aims to promote international co- operation on exchange rates and other economic matters.

Question 7

Monetary Policy Committee

Answer 7

The Bank of England committee responsible for keeping inflation under control by the manipulation of interest rates.

Question 8

Project Merlin

Answer 8

The project that resulted in an agreement between the government and the main banks to pay lower bonuses to their employees and make more money available for business loans.

Question 9

Protectionism

Answer 9

Government policies designed to protect a country’s own businesses and workforce. For example, imposing taxes on goods made overseas might mean that goods produced in the home country are less expensive and so
consumers will be encouraged to buy home-produced goods rather than imported ones.

Question 10

Public sector debt

Answer 10

The amount the government has to borrow to bridge the gap between the income it receives (eg from taxation) and the amount it spends (eg on services such as the NHS)

Question 11

Reshoring

Answer 11

The term given to bringing back functions that were once offshored.