Lesson 4 Monetary and Fiscal Policy worksheet ST PDF

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Macro-economic Policies Monetary Policy

1. What is the purpose of Monetary policy? Policy is to reach and maintain a low and stable inflation rate, and to achieve a long-term GDP growth trend. 2. Who regulates the monetary policy in the UK? The bank of England 3.   

List down min 3 tools of monetary policy? reserve requirements the discount rates open market operations

4. What are two types of monetary policies? They set the interest rate that they charge banks to borrow money from us and they can buy bonds to lower the interest rates on savings and loans through quantitative easing. 5. What is a loose monetary policy and how it would affect the business. Provide an example

6. What is a tight monetary policy and how it would affect the business. Provide an example

7. What is the current monetary policy of the UK government and how it affects your selected business. Apply this to your selected business for this assignment) The current monetary policy is that theres a low interest rate. What is the current monetary policy of the UK government and how it affects your selected business

Macro-economic Policies Fiscal Policy

1. What is the purpose of Fiscal policy? Stabilise economic growth avoiding a boom and bust economic cycle

2. Who regulates the fiscal policy in the UK? The financial conduct authority [FCA] 3. List down min 2 tools of fiscal policy? Taxes and spending

4. What are two types of fiscal policies? Discretionary and automatic

5. What is a loose fiscal policy and how it would affect the business. Provide an example

6. What is a tight fiscal policy and how it would affect the business. Provide an example

7. What is the current fiscal policy of the UK government and how it affects your selected business. Apply this to your selected business for this assignment)...