LIBF Unit 2 Inflation, exchange rates | Baamboozle - Baamboozle

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

Raise interest rates

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

Import

What does CPI stand for?

Consumer Price Index

What does MPC stand for?

Monetary Policy Committee

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

Export

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

CPI Consumer price index

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%)

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

True

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

True

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

True

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

False

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

Strong Pound, Imports Cheaper, Exports Dearer

The interest rate for the UK is set by who?

The Bank of England

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

Brexit, Recessions, inflation

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