WorksheetsFES Youth Financial Literacy - Central Bank & Money (1-3)
Total questions: 10
Worksheet time: 11mins
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.
