Fed's Bullard: U.K. Needs Glide Path on Trade Arrangement

The video discusses the impact of Brexit on UK and US banks, highlighting systemic risks and the uncertainty surrounding passporting rights. It explains the modern concept of the lender of last resort, emphasizing market functioning during crises. The discussion shifts to the bond market, addressing low yields and the potential for future interest rate increases, urging investors to be prepared for changes in economic conditions.

What is a major concern for UK banks following Brexit?

• Loss of passporting rights to the EU

• Increase in domestic interest rates

• Expansion into Asian markets

• Decrease in global oil prices

What is the modern role of the lender of last resort?

• To ensure market functioning during crises

• To provide loans to small businesses

• To regulate international trade

• To set global interest rates

How did the financial system respond to the Brexit shock?

• It collapsed under pressure

• It showed resilience and stability

• It required significant government intervention

• It led to a global financial crisis

What is a characteristic of the current bond market?

• Increasing interest rates

• High bond yields

• Low bond yields

• Stable bond prices

What has been a common prediction about interest rates in recent years?

• They will remain stable

• They will increase soon

• They will become irrelevant

• They will decrease significantly