ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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False
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True
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Either A or B
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None of the above
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Detailed explanation-1: -The Bank of England is the central bank of the United Kingdom. We’re different to a bank that you would come across in the high street. That means we don’t hold accounts or make loans to the public. We issue banknotes that you spend in shops.
Detailed explanation-2: -The Volcker Rule generally restricts banking entities from engaging in proprietary trading and from owning, sponsoring, or having certain relationships with a hedge fund or private equity fund.
Detailed explanation-3: -The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 1 February 2023, the MPC voted by a majority of 7–2 to increase Bank Rate by 0.5 percentage points, to 4%.
Detailed explanation-4: -The Volcker Rule aims to protect bank customers by preventing banks from making certain types of speculative investments that contributed to the 2007–2008 financial crisis. In addition, banks will not have to set aside as much cash for derivatives trades among different units of the same firm.