Monetery Policy - Intrest Rates Flashcards
1
Q
What do savers get on savings ?
A
Intrest added on
2
Q
How does compound intrest affect savers ?
A
Longer money is in the bank more intrest in return
3
Q
Why does the bank use savers deposits?
A
To make a profit
4
Q
Base rate
A
Is at 5.2 %
And is set by they monetary policy committee
5
Q
How long does it take monetary policy to have full affect on the economy ?
A
2 years
6
Q
Fixed Intrest rate
A
Intrest rate does not change for the duration of the loan
7
Q
Variable Intrest rate ?
A
Interest rate that changes (mortgages )
