FES Youth Financial Literacy - Central Bank & Money (1-3)

How many years has The Bank of England been issuing bank notes for?

• 100

• 200

• 300

• 500

The bank notes were initially a note of IOU (I own you) for what things deposited at the bank?

• Cows

• Coins

• Gold

• Sea Shell

how much does it cost to make a bank note of 20 pounds?

• 20 pounds

• a few pounds

• 1 pence

• a few pence

What is it that gives the bank note the face value?

• Special materials that made the notes

• Gold

• Bank

• Trust

What are the features that make it hard to counterfeit the bank note ?

• holograms

• metallic threads

• watermarks

• raised print

How prices respond to Supply and Demand?

choose correct statement:

• The more people want something, the higher the price will become.

• IF there's too much money in the society, prices will decrease.

• The more easily available something is, the cheaper it becomes.

• The more money is produced, the value of money will decrease.

Choose the correct statement(s):

• Inflation is when the price of everything goes higher in general.

• The value of money decreases over time when there is inflation.

• When interest rate is high, the inflation rate will go lower.

• When there is deflation, prices of everything in general in will go down.

• Deflation is good, inflation is bad for economy, business and people.

The government wants the central bank (Bank of England) to maintain inflation at a rate of:

• more than 2%

• Less than 2%

• stay at 2%

choose the correct statement:

• If the bank expects inflation to fall below the target, it will reduce interest rates to boost spending.

• If the bank expects inflation to fall below the target, , it will increase interest rates to boost spending.

Which one is correct answer?

• Changes in interest rates can take up to two months to have the full impact on inflation.

• Changes in interest rates can take up to two years to have the full impact on inflation.

• Changes in interest rates can have the full impact on inflation within a month.