Class notes
Lecture notes Unit 4 - Making markets work
- Course
- Institution
These notes helped me get an A* in A Level Economics, covering all aspects of the specification, plus hints of real world context.
[Show more]
Seller
Follow
henryquinn
Content preview
4.5.3 The role of the central bank• Central bank manages the currency and money supply for an economy
Implementation of monetary policy
• Central bank acts to influence the manipulation of interest rates
• In UK MPC alters interest rates and controls supply of money
• Bank controls base rate which ultimately controls interest rates
Banker to the government
• Provides services to central government
• It maintains and operates deposit accounts of the government
• Central bank also manages public debt and advice government
Lender of last resort
• BOE is this
• Only used if there is no other way of obtaining money
• If institution risky or close to collapse the bank may lend them money
• It can protect individuals who deposit funds in bank
• Banks avoid this as it suggests they are experiencing financial disaster
Role in regulation of banking industry
• Governments might regulate banks with regulation and guidelines
• Helps ensure behavior in banks is clear
• Banks have an influence on how economy is run
• PRA & FCA regulate financial firms to ensure they are being honest to customers
• FCA also promote competition
• PRA promotes safety and stability of banks
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller henryquinn. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.79. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
56326 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now