In the United Kingdom, the central bank is the _________________.

Federal Reserve Bank
Clydesdale Bank
European Central Bank
Bank of England

All the following statements about a central bank are true except it ____________.

regulates a nation's financial institutions
accepts personal deposits
adjusts the quantity of money in circulation
is a public authority

The function of the European Central Bank is as __________.

banker to the governments of the EU countries
lender of last resort
manager of monetary policy
regulator of banks in the EU

The sum of the notes and coins in circulation and banks' deposits at the central bank is the ________________.

liabilities of the central bank
reserves of the central bank
monetary base
assets of the central bank

Monetary policy in the United Kingdom is set by the _______________.

European Central Bank
Governor of the Bank of England
government
Monetary Policy Committee

The interest rate that the central bank stands ready to lend reserves to commercial banks is the ___________rate.

short-term
reserve
Treasury bill
discount

The Bank of England changes the required reserve ratio ___________________.

whenever it conducts an open market purchase
monthly
whenever it conducts an open market sale
rarely

An open market operation occurs when the ______________ buys or sells government securities _______________.

a commercial bank; from or to the public
central bank; from or to the government
a commercial bank; from or to the government
central bank; in the open market

Assets of the Bank of England include ______________.

banks' deposits with the Bank of England
Treasury bills and government bonds
public deposits
notes in circulation

An increase in currency held outside the banks is ________________.

a currency surplus
a currency drain
wealth
income