Central Bank Homework

1.  Match the words to make collocations. If you need, come back to what we did at the lesson.

1.1.  Now use the correct form of some of the word combinations to complete the sentences below.


2. You are going to listen to Kate Barker, an economist and a member of the Bank of England’s Monetary Policy Committee, talking about monetary policy. Before you listen, answer the questions and write the answers in the comments section.

  1. What is the aim of monetary policy?
  2. What tools does a central bank use to control supply and demand for money?
  3. What tends to happen when interest rates rise?
  4. What tends to happen when interest rates fall?
  5. What do commercial banks do after the central bank changes the base rate at which it lends them money?

2.1. Now listen to Kate Barker, and compare your answers with what she says.

3. Check your understanding of the language Kate Barker uses by matching the words in the box with their definitions.

base rate             consume              incentive                plant

capital                  demand                   labour                    supply






4. Finally, read the article  on Australian central bank policy and answer True or False.

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