Economics- Edexcel 4.4.3
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| Main functions of a central bank | show 🗑
|
||||
| show | setting base rate, deciding on QE, possible exchange rate intervention in managed floating or fixed
🗑
|
||||
| show | supervision of stability of wider financial system to reduce systemic risk, prudential policies designed to maintain financial stability during times of crisis and high volatility
🗑
|
||||
| show | lender of last resort, managing liquidity, overseeing the payments systems
🗑
|
||||
| show | handling government debts
🗑
|
||||
| show | promote monetary and financial stability
🗑
|
||||
| Monetary stability means | show 🗑
|
||||
| show | look at a range of demand/supply-side indicators that impact inflationary pressures and decide the policy interest rates
🗑
|
||||
| MPC | show 🗑
|
||||
| Expansionary monetary policies | show 🗑
|
||||
| Deflationary monetary policies | show 🗑
|
||||
| Aim of expansionary monetary policy | show 🗑
|
||||
| show | lower AD
🗑
|
||||
| show | when the nominal interest rate is close or equal to zero and central banks find that they have run out of room to stimulate AD during a slowdown or recession
🗑
|
||||
| show | risk averse banks are required to hold more capital and charge a premium on new loans/private sector businesses and consumers are low on confidence and focussed on cutting their existing debt rather than taking out new loans
🗑
|
||||
| show | fiscal policy(larger budget deficit for AD)/central banks supply or use negative interest rates to reduce real interest rates/switch to a managed floating exchange rate to seek competitive depreciation
🗑
|
||||
| show | Bank of England creates new money to buy assets, increased demand for gov bonds increases prices, causes a fall in the yield on a bond, use money from sold bonds to buy other assets causing injection of cash
🗑
|
||||
| show | how much income an investment generates, separate from the principal
🗑
|
||||
| show | wealth effect, borrowing cost effect, lending effect, currency effect
🗑
|
||||
| wealth effect | show 🗑
|
||||
| borrowing cost effect | show 🗑
|
||||
| lending effect | show 🗑
|
||||
| currency effect | show 🗑
|
||||
| show | FPC, PRA, FCA, CMA
🗑
|
||||
| FPC | show 🗑
|
||||
| show | prudential regulation authority
🗑
|
||||
| FCA | show 🗑
|
||||
| CMA | show 🗑
|
||||
| show | protect against market failure/encourage confidence/allow Central Bank to perform its other roles/prevent systemic risk within financial markets
🗑
|
||||
| show | identify, monitor and take actions to remove or reduce risks that threaten the resilience of the UK financial system
🗑
|
||||
| What does the FPC do? | show 🗑
|
||||
| show | tell commercial banks and other lenders to increase their capital buffet to help absorb unexpected losses on their assets
🗑
|
||||
| Macro-prudential policy | show 🗑
|
||||
| show | adjusts capital based on individual institutions' risks
🗑
|
||||
| Main role of PRA | show 🗑
|
||||
| show | insurance providers, buy-to-let mortgage lenders, credit unions
🗑
|
||||
| Liquidity ratio | show 🗑
|
||||
| show | requires commercial banks to keep enough liquid assets to get through a 30 day market crisis
🗑
|
||||
| show | cash & balances with central banks + government bonds / bank’s total assets
🗑
|
||||
| show | measures the funds a bank has in reserve against the riskier assets it holds that could be vulnerable in the event of a crisis
🗑
|
||||
| show | the portion of a company's net income that is not paid out as dividends to shareholders but is instead retained within the company for various purposes
🗑
|
||||
| Counter cyclical capital buffer rate in UK | show 🗑
|
||||
| show | upswing in credit cycle, downswing in credit cycle
🗑
|
||||
| show | commercial banks are required to build up extra capital reserves
🗑
|
||||
| show | commercial banks have more capital to help absorb losses
🗑
|
||||
| show | indicator of the ability of a bank or building society to absorb losses
🗑
|
||||
| show | capital / exposures
🗑
|
||||
| show | more that the bank or building society relies on debt to fund their activities
🗑
|
||||
| show | assess commercial banks’ ability not just to withstand severe shocks but to maintain the supply of credit to the real economy under severe pressure
🗑
|
||||
| Stress tests use what? | show 🗑
|
||||
| show | economic outcomes that lie well outside the mainstream forecasts
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
jessharris
Popular Economics sets