Financial sector

What is the central bank of the UK?

Bank of England. Acts as a banker to the banks.

What is the aim of the Bank of England?

To help the government maintain macroeconomic stability through quantitative easing and changing interest rates.

What is the financial sector?

The collection of institutions that provide services to firms and consumers in an economy.

What are commercial banks?

Highstreet banks for consumer use.

What is the role of commercial banks?

To take deposits (savings) from customers and to turn them into assets for the bank.

They do this by investing, or lending, the money that customers deposit at a higher rate of interest that they offer their savers.

What are credit provisions?

Loan agreements between a lender and a borrower, who promises to repay the lender with interest.

What is credit score?

a numerical representation of an individual's creditworthiness, reflecting their ability to repay debt.

What is a building society?

Not public limited companies with stock and shareholders. Run for benefit of members.

Financial institutions owned by their members, who are also their customers.

What do Insurance companies do?

Provide a range of policies to protect individuals and businesses against the risk of financial losses.

What is liquidity provision?

Liquidity is how easy it is turning an asset into cash. Liquidation companies allow for a quick exchange of assets into cash.

What do accounting firms do?

Take responsibility for managing and reporting a business accounts on behalf of the company itself.

What are the UK’s main exports?

Goods - cars, power generators, crude oil.

Services - Financial services.

What are the UK’s main imports?

Cars, medicinal & pharmaceutical products.

Who does the UK trade with the most?

US, Germany, Netherlands.