How much economics have you remembered?

GDP grows fastest during which phase of the economic cycle?

The UK base rate of interest is set by the MPC of the Bank of England. What does MPC stand for?

The Bank of England target rate for CPI inflation in the UK is

• 0%

• 1%

• 0 -2%

• 2%

What does GDP stand for?

When thinking about exchange rates what does SPICED mean?

£1 = $2

Which statements are true?

• A dollar is worth 50p

• A dollar costs 50p

• Dollars are worth twice as much as £s

• Pounds are worth half as much as dollars

When one currency falls in value against another this is called a currency

GDP falling for two consecutive quarters is called a

Businesses tend to dislike rising interest rates because

• Any loans become more expensive to pay back

• Customers are more likely to save rather than spend

• It is more expensive to take out new loans

• Their profits tend to fall

Which business would be happy to see the £ fall in value?

• A UK firm importing glass bottles

• A UK firm exporting whisky

• The French tourism industry

• An American firm in the UK with shareholders in the USA