BOE’s Carney on Emergency Interest-Rate Cut: Statement

The video discusses the Bank of England's response to the economic challenges posed by COVID-19. It highlights the efforts of NHS professionals and the FCO, and outlines a comprehensive package of measures to support UK households and businesses. The Bank of England is coordinating with policy committees and the Treasury to maximize the effectiveness of its response. The video also addresses the economic impact of COVID-19, including market volatility and disruptions to supply chains. Key actions include reducing the Bank rate and launching a new term funding scheme to support small and medium-sized enterprises.

What is the primary role of the Bank of England during the COVID-19 economic shock?

• To promote international trade

• To support UK businesses and households

• To reduce government spending

• To increase taxes

What has been the impact of COVID-19 on risky asset and commodity prices?

• They have increased significantly

• They have remained stable

• They have fallen sharply

• They have shown no change

What is the expected effect of the economic shock on UK activity in the coming months?

• Activity is likely to weaken

• Activity will remain unchanged

• Activity is likely to strengthen

• Activity will become unpredictable

What action did the MPC take to support borrowers during the economic disruption?

• Stopped all lending

• Introduced new taxes

• Reduced the Bank rate

• Increased the Bank rate

What is the purpose of the TFSME introduced by the MPC?

• To increase taxes on SMEs

• To provide funding for banks to support lending to SMEs

• To reduce the number of SMEs

• To promote international trade