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This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

  • Monetary policy, financial regulation

Click to listen to the podcast below and then answer the questions:

Andrew Bailey raises prospect of increased UK bank deposit protection

  • Distinguish between the Bank of England’s Monetary Policy Committee (MPC) and its Financial Policy Committee (FPC)

  • Explain the role of the UK’s Financial Services Compensation Scheme (FSCS)

  • Explain what is meant by a ‘bank run’

  • ‘The runs on both the SVB and Credit Suisse also highlighted banks’ vulnerability to depositors withdrawing funds out of concern they could lose their money’.  Explain how bank deposit insurance guarantee schemes help to ward off bank runs

  • ‘He also maintained that financial stability concerns should not prevent monetary authorities from keeping interest rates high to attack inflation’.  Evaluate the extent to which price stability should take precedence over financial stability

Gavin Clarke, Emmanuel College

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