Money, banks and monetary policy

the nature and function of money

money is a median of exchange and store of value

median of exchange means payments

store of value means wealth - money may be stored as wealth asset.

Bank and bank deposit

bank is an institution that accepts deposits and creates deposits when lending to customers who wish to borrow.

• accpets deposits from the general public that can be transferred by cheque or debit card
• creates deposits when it lends to the general public

Bank of England - is responsible for managing UK monetary policy and maintaining the supply of money in the economy.

all comercial banks aim to make a profit for their owners. The Bank of England is an exception since its aims are…