Everyone will be expected to know:
IMPORTANT FACTS- Bank of England
The Bank of England is the UK's national bank. It’s not like a bank in your local high street. It has special functions that help keep the economy and financial system stable. Low inflation, trust in banknotes and a stable financial system are key ingredients for the economic well-being of our country.
VIDEO: Watch these short videos for an introduction to the Bank of England.
IMPORTANT FACTS- Bank of England Base Rate
IMPORTANT FACTS- Monetary Policy Committee
VIDEO: Explanation of MPC from A-Level students
The Monetary Policy Committee (MPC) decides Bank of England base rate every month. It has been set at 0.5% since March 2009. In 1979 the rate got as high as 17%. The MPC is made up of an independent panel of experts.
The MPC is tasked with trying to keep inflation down - the government's target is 2%. Inflation has been higher than this recently but the Bank of England has been trying to encourage spending (and hence increase GDP) by keeping interest rates low.
While the Bank of England is responsible for UK's financial stability, two other organisations help maintain global financial stability. Namely:
International Monetary Fund (IMF)
World Bank
Find out more here.