King: Sterling at Effective Rate of Three Years Ago

The video discusses the political and economic landscape in the UK following the Brexit referendum. It highlights the political changes with the resignation of David Cameron and the turmoil in the Labor Party. The need for a clear trade strategy post-EU departure is emphasized, along with the economic challenges such as the current account deficit and the role of sterling. The video also touches on the banking system's liquidity and the cautious measures taken by financial institutions post-Brexit.

What was one of the main political consequences of the UK referendum?

• The resignation of David Cameron

• The resignation of the opposition leader

• The immediate invocation of Article 50

• The appointment of a new EU representative

What economic measure was deemed necessary for the UK to rebalance its economy after the 2008 financial crisis?

• Increase in interest rates

• Depreciation of sterling

• Expansion of the euro area

• Reduction in government spending

What was the impact of sterling's rise in the past three years on the UK's economic rebalancing?

• It improved the current account deficit

• It had no significant impact

• It offset the opportunity to rebalance

• It facilitated economic growth

What was the response of financial institutions to the Brexit vote in terms of liquidity?

• They withdrew from the market

• They maintained the same level of liquidity

• They asked for more than double the allocated amount

• They reduced their liquidity demands

What was one of the benefits of the post-2008 regime for central banks?

• Enhanced currency exchange rates

• Rethinking liquidity provision

• Increased interest rates

• Decreased financial regulations