LIBF Unit 2 Inflation, exchange rates | Baamboozle - Baamboozle

English 15 Public

Year 11 assessment quiz

Study Slideshow

#Business #exchange rates #inflation #libf

The official rate of inflation in the UK is called the:

CPI Consumer price index

15

Historically, wages have tended to increase at a rate above inflation. True or false?

True

15

If the Monetary Policy Committee believes that inflation is too high then it will do what?

Raise interest rates

15

One of the reasons why general interest rates change is the need for banks to make a profit. True or False?

True

15

If the pound ‘falls’ against the euro, it means the pound will buy more euros than before. True or False?

False

15

If a UK business sells products abroad this is classed as...

Export

15

If a UK business buys products from another country this is classed as...

Import

15

We pay tax on certain products that are imported. True of False?

True

15

What can cause the £(GBP) to fall in value?

Brexit, Recessions, inflation

15

If my savings account is giving 5% interest but inflation is at 9%, what am I actually earning on my savings?

4% (9%-5%=4%)

15

What does CPI stand for?

Consumer Price Index

15

The interest rate for the UK is set by who?

The Bank of England

15

What does MPC stand for?

Monetary Policy Committee

15

What does S.P.I.C.E.D stand for?

Strong Pound, Imports Cheaper, Exports Dearer

15

Explain what exchange rates are

The rate at which a currency is at when you purchase it. It could be higher or lower vs the £GBP

15