Economics: Topic 10.5, Year 2 Definitions - Statistics

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Definitions Answer % Correct
Responsible for managing the monetary system in an economy. A Central Bank
75%
An organisation with 188 member countries that aims to encourage global monetary cooperation, secure financial stability and promote international trade. The International Monetary Fund
75%
Refers to actions taken by the government to manipulate interest rates, the supply of money, and the exchange rate to achieve its macroeconomic objectives. Monetary Policy
50%
A financial institution whose distress or failure would cause significant disruption to the international financial system and global economic activity. A Global Systemically Important Bank (G-SIB)
0%
A sale and repurchase transaction of a financial asset between one or more commercial banks and the Bank of England. A Repo
0%
Exists whenever either the seller or buyer of a product has more information than the other party to the transaction. Asymmetric Information
0%
The finance raised through issuing shares and retaining earnings from previous trading periods. Capital
0%
Comprises the banknotes in circulation along with the balances or reserves held by commercial bank and building societies at the Bank of England. Central Bank Money
0%
Comprises a bank's common equity and its disclosed retained profit. Core Tier One Capital
0%
Debt issued by the Bank of England on behalf of the UK government. These normally receive a fixed interest payment and have a lifespan in excess of one year. Government Bonds
0%
Operates to mitigate systemic risk. Macroprudential Regulation
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Exists when one person or organisation takes greater risks because third parties carry the burden of those risks. Moral Hazard
0%
Actions undertaken by central banks to provide or withdraw liquidity from one or more commercial banks. Open Market Operations
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A form of monetary policy where a central bank creates new money electronically to buy financial assets. Quantitative Easing (QE)
0%
The process through which the Bank of England intervenes to manage the failure of a financial institution. Resolution
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The amount of profit kept by the bank and not paid out to shareholders in the form of dividends. Retained Profit
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The creation and sale of financial products, such as bonds, backed by the income generated by an asset, such as mortgages or car loans. Securitisation
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A group of nine experts in monetary issues who meet monthly to make a decision of the UK's bank rate. The Monetary Policy Committee (MPC)
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The organisation responsible for the regulation and supervision of financial institutions in the UK. The Prudential Regulation Authority
0%
Refers to that part of the economy concerned with producing goods and services. The Real Economy
0%
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