Role Of Central Banks

Question 1

What is an example of Implantation of monetary policy

Answer 1

• Quantitative easing
• Interests rates

Question 2

Banker to the government

Answer 2

• this can be through governemnt bonds
• giving the government money

Question 3

Banker to banks

Answer 3

• essentially offering money to high street banks that might run out of liquid assets

Question 4

What are two reasons for liquid issues?

Answer 4

1. Bank may run out of liquid assets
2. Bank may face fundamental problems

Question 5

Role in regulation of banking industry

Answer 5

• regulating the financial industry eg: FCA