Assets are bought and sold here in the short term.
What is the definition of a money market?
200
A bank which does not generally accept deposits and offers advice on growing wealth.
What is a investment bank?
200
To maintain financial and macroeconomic stability.
What is a central banks two main aims?
200
The amount of capital on a bank's balance sheet as a proportion of its loans.
What is capital ratio?
300
The part of stock money made of cash and liquid deposits.
What is narrow money?
300
Where securities, such as shares and bonds are issued to raise medium to long term financing.
Define a capital market?
300
The risk caused by inter-linkages within the financial system.
What is systemic risk?
300
Currently 2%CPI.
What is the governments inflation target?
300
The ratio of a bank's cash and other easily convertable assets to its deposits.
What is liquidity ratio?
400
The part of stock money made of cash, liquid deposits and other less liquid deposits.
What is broad money?
400
Where currencies are traded on a global scale.
What is a foreign exchange market?
400
The creation of an advance by the bank.
What is credit?
400
This is an 'unconventional' monetary policy tool introduced in the recession 2009.
What is quantitative easing?
400
Where a firm or individuals, in the pursuit of profit takes on to much risk in the knowledge, that it things go wrong, someone else will cover a significant proportion of the loss.
What is moral hazard?
500
Measures the ease which an asset can be converted into cash.
What is liquidity?
500
The rate of interest charged when banks lend to each other.
What is LIBOR (London Interbank Offered Rate)?
500
Share capital, retained profit, bank issued bonds and customer deposits are all examples of this for a retail bank.
What are liabilities for a retail bank's balance sheet?
500
Attempts to send signals to financial markets, businesses and individuals about the interest rates to limit a strong reaction to changes in Macro policy.
What is forward guidance?
500
The part of the Bank of England charges with primary objective of identifying, monitoring and taking action to remove risk and support government policy.