Central Banks and Monetary Policy (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
In what year was the Bank of England granted operational independence?
In what year was the Bank of England granted operational independence?
1997
What is the UK's current inflation target, and what is the acceptable band around it?
What is the UK's current inflation target, and what is the acceptable band around it?
2% CPI with ±1% band
How many times per year does the Monetary Policy Committee meet?
How many times per year does the Monetary Policy Committee meet?
Eight times
What does 'lender of last resort' mean?
What does 'lender of last resort' mean?
Lending to solvent banks with liquidity issues
Bank Rate is the interest rate that the Bank of England pays on what?
Bank Rate is the interest rate that the Bank of England pays on what?
Commercial bank deposits at BoE
In the equation , which components does monetary policy affect?
In the equation , which components does monetary policy affect?
, , and
How long is the time lag between a Bank Rate change and its full effect on inflation?
How long is the time lag between a Bank Rate change and its full effect on inflation?
Up to 2 years
What is the zero lower bound?
What is the zero lower bound?
When Bank Rate reaches or is close to 0%
What was the total amount of QE implemented in the UK by the end of all five rounds?
What was the total amount of QE implemented in the UK by the end of all five rounds?
£895 billion
If Bank Rate is 1.0% and CPI inflation is 7.0%, what is the real interest rate?
If Bank Rate is 1.0% and CPI inflation is 7.0%, what is the real interest rate?
-6.0%