What is the equation for the Quantity Theory of Money?

• QV=PM

• MV=PT

• XM=PY

• XY=ZY

If the money supply/access to credit was reduced, what would happen to the Price Level?

• Falls/Deflation

• Rises/Inflation

What is crucially provided by central banks to help them achieve their objective of financial stability?

• Supply of workers

• Liquidity insurance

• Capital insurance

• Worker insurance

The FPC is primarily responsible for ...

• Macro-prudential regulation

• Micro-prudential regulation

The PRA and FCA are responsible for ...

• Macro-prudential regulation

• Micro-prudential regulation

Which of these is NOT part of the Bank of England?

• FCA

• PRA

• FPC

If banks do not have sufficient capital of what are they at risk if the value of their assets fall?

• Insolvency

• Bankruptcy

If banks do not have sufficient liquidity of what are they at risk?

• Insolvency

• Bankruptcy

Why, in particular, is liquidity insurance necessary?

• Banks borrow long term but lend short term

• Banks are not good at their job

• Banks borrow short term but lend long term

• Banks never make a profit from lending

Central banks support financial institutions and governments bailouts failing firms, which leads to...

• Dukes of Hazzard

• Moral hazard

• Laziness

• Moral practices