WorksheetsFinancial markets - recap on regulation
Total questions: 10
Worksheet time: 5mins
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
