A bank’s reserves are all held as cash in its branches

Market loans include between one bank and another

Securities include bills, bonds, and equities

Over half the assets are denominated in currencies other than sterling

Financial intermediaries offer risk transformation and maturity transformation

The Bank of England may act as a lender of last resort

A bank can increase its capital adequacy ratio by switching some funds from advances to buying more company shares

A bank can increase its capital adequacy ratio by selling some company shares and lending the proceeds as mortgages

A move which means that all workers who were in the past paid weekly will in future be paid monthly

A rise in incomes

A rise in wealth

A fall in the interest rate

The Bank will be able to ensure that the money market ends up with whatever interest rate and money stock it wishes

The money supply curve will shift right

The interest rate on market loans within the UK will decrease

Banks will be willing to lend to riskier customers than previously

It shows that the lower is the interest rate, the higher is the equilibrium level of output

The more responsive planned spending is to changes in the interest rate, the more interest elastic is the IS curve

A fall in the interest rate will shift IS to the right

An increase in exports will shift IS to the right