Unit 10 Study Guide
Workshop 10.1
1. Which of the following are wholesale and which are retail?
(a) Large-scale deposits made by firms at negotiated rates of interest. (b) Loans made by high street banks at published rates of interest. (c) Deposits in savings accounts in high street banks. (d) Deposits in savings accounts in building societies (e) Large-scale loans to industry syndicated through several banks.
wholesale retail retail retail wholesale
Workshop 10.1
A building society is a financial institution owned by its members. In the UK today, building societies actively compete with banks for most consumer banking services, especially mortgage lending and deposits.
the phrase "high street banks" has been widely used to refer to the retail banking sector in the …show more content…
(p. 327) The government decides to increase the proportion of the national debt financed by bonds rather than by Treasury bills. (p. 327f) The Bank of England purchases government bonds from the banking sector. (p. 317)
Rise
Rise
No change
Rise
Workshop 10.1
6. Which of the following will cause the UK money supply to rise; which will cause it to fall; and which will cause no direct change?
No (e) The government finances its budget deficit by selling bonds and bills to change the general public and non-bank private sector. (p. 328)
(f) The government finances its budget deficit by selling Treasury bills to the banking sector. (p. 328) (g) The Bank of England imposes a statutory liquidity ratio on banks higher than their current ratio. (h) With the increased use of debit and credit cards, the general public decides to hold less cash as a proportion of income. (page 325 – banks hold less cash over time because of credit cards. Extra cash allows banks to create more money)
Rise
Fall
Rise
worksheet
1. Which of the following are wholesale and which are retail?
(a) Large-scale deposits made by firms at negotiated rates of interest. (b) Loans made by high street banks at published rates of interest. (c) Deposits in savings accounts in high street banks. (d) Deposits in savings accounts in building societies (e) Large-scale loans to industry syndicated through several banks.
wholesale retail retail retail wholesale
Workshop 10.1
A building society is a financial institution owned by its members. In the UK today, building societies actively compete with banks for most consumer banking services, especially mortgage lending and deposits.
the phrase "high street banks" has been widely used to refer to the retail banking sector in the …show more content…
(p. 327) The government decides to increase the proportion of the national debt financed by bonds rather than by Treasury bills. (p. 327f) The Bank of England purchases government bonds from the banking sector. (p. 317)
Rise
Rise
No change
Rise
Workshop 10.1
6. Which of the following will cause the UK money supply to rise; which will cause it to fall; and which will cause no direct change?
No (e) The government finances its budget deficit by selling bonds and bills to change the general public and non-bank private sector. (p. 328)
(f) The government finances its budget deficit by selling Treasury bills to the banking sector. (p. 328) (g) The Bank of England imposes a statutory liquidity ratio on banks higher than their current ratio. (h) With the increased use of debit and credit cards, the general public decides to hold less cash as a proportion of income. (page 325 – banks hold less cash over time because of credit cards. Extra cash allows banks to create more money)
Rise
Fall
Rise
worksheet