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