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What is the economy?

It’s a word you can’t avoid. But when put on the spot, many people struggle to say what it means. So where to start?

What do banks do?

What sets high street banks apart from other businesses is the way they work with money.

What is money?

Feathers, stone wheels… even teeth. Money has taken many forms over time.

What are interest rates?

Interest is the cost of borrowing money or the reward for saving.

What is GDP?

Perhaps the most talked about economic concept. But what is it and how do we measure it?

What is inflation?

How have prices changed over time?

What is insurance?

Insurance provides protection against financial loss for people and companies.

Who sets exchange rates?

We do not set the exchange rate. But our actions can indirectly affect the value of the pound.

What does the Bank of England do?

We are the UK’s central bank. Our mission is to promote the good of the people by maintaining monetary and financial stability.

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Money, payments and spending

Banks, borrowing and saving

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This page was last updated 27 April 2020
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