MACRO AS - CHAPTER 9

Question 1

POICY INSTRUMENT

Answer 1

SET OF TOOLS USED TO TRY AND ACHIEVE POLICY OBJECTIVES

Question 2

BANK OF ENGLAND

Answer 2

UK CENTRAL BANK WHO IS INCHARGE OF MONETARY POLCIY

Question 3

CENTERAL BANK

Answer 3

CONTROLS THE BANKING SYSTEM AND IMPLEMENTS THE MONETARY POLICY ON BEHALF OF THE GOV. 1997

Question 4

MONEY

Answer 4

ASSET THAT CAN BE EXCHANGED TO BUY THINGS

Question 5

MONETARY POLICY

Answer 5

MANIPULATES I/R. THE OBJECTIVE BY B OF E TO AIM TO CONTROL INFLATION

Question 6

COMMERCIAL BANKS

Answer 6

E.G BARCLAYS AND HSBC BANKS WHO’S MAIN AIM IS TO MAKE PROFIT FOR OWNERS

Question 7

INFLATION RATE TARGET

Answer 7

2% +/- 1%. MAIN OBJECTIVE FOR LAST 30 YRS

Question 8

MPC (MONETARY POLICY COMMITTEE)

Answer 8

MEET ONCE A MONTH TO SET BANK RATE AND I/R

Question 9

BANK OF ENGLAND MAIN GOVERNOR? AND WHO WAS HE FOLLOWED BY?

Answer 9

MERVYN KING 2013 ENDED AND GOT REPLACED BY MARK CARNEY

Question 10

BANK RATE

Answer 10

I/R BANK OF ENGLAND PAYS TO COMMERCIAL BANKS