Podcast
Questions and Answers
What effect does high government borrowing typically have on interest rates?
What effect does high government borrowing typically have on interest rates?
- Decreases interest rates
- Has no impact on interest rates
- Pushes interest rates up (correct)
- Keeps interest rates stable
How does high consumer borrowing usually affect interest rates?
How does high consumer borrowing usually affect interest rates?
- Does not impact interest rates
- Lowers interest rates
- Increases interest rates (correct)
- Stabilizes interest rates
What is the purpose of increasing interest rates when inflation is high?
What is the purpose of increasing interest rates when inflation is high?
- To control inflation (correct)
- To stimulate economic activity
- To reduce personal debt levels
- To encourage foreign investment
How do high UK interest rates impact UK companies that export their products?
How do high UK interest rates impact UK companies that export their products?
Which measure is used as the official measure for the inflation target, separating out housing costs?
Which measure is used as the official measure for the inflation target, separating out housing costs?
What effect do increases in interest rates have on the demand for mortgages?
What effect do increases in interest rates have on the demand for mortgages?
How do low interest rates impact the demand for mortgages?
How do low interest rates impact the demand for mortgages?
Why might house prices rise when interest rates are low?
Why might house prices rise when interest rates are low?
What is the primary aim of the Monetary Policy Committee (MPC) when altering interest rates?
What is the primary aim of the Monetary Policy Committee (MPC) when altering interest rates?
Why do changes in the base rate have an almost immediate impact on interest rates in the mortgage market?
Why do changes in the base rate have an almost immediate impact on interest rates in the mortgage market?
