BOE characteristics Acts as a lender of last resort via Repo’s Uses monetary policy Buys and sells foreign currency Maintains stability for financial markets by ensuring sufficient liquidity Acts as a banker to government and other banks   BOE clients Governments hold public deposits Commercial banks hold a percentage of deposits for purposes of clearing Central banks   Retail bank [...]

Shares Vs bonds Values of shares increase as companies grow in the long run whereas bonds will not. When a firm does well bondholder receives interest whereas a shareholder gains access to surplus funds High risk in shares than say gilt edged bonds which have less risk attached to them Ordinary shares are last in the pecking order in liquidation [...]

National savings account (NSA) Tax free For small savers Interest is added to the principle Works like a bond but is not tradable Individuals can receive prizes i.e. via monetary rewards such as a cheque for £50 etc Dealt at the Post Office Convertibles A loan stock with the option to convert into ordinary shares in a specified time/ terms [...]

A comparison between unit trusts and investment trusts Both have risk. Both earn profit. Both invest in securities and shares. Both are regulated. A contrast between unit trusts and investment trusts Open ended Vs closed ended – Unit trusts are open ended, a fund manager can expand funds by purchasing more units or redeem the existing value. Whereas investment trusts [...]

Pensions Vs Insurance Below is comparison and contrast between pension and insurance. A comparison between insurance companies and pension funds Both have contractual agreements/ payments/ contributions/ funds. Both have an element if saving for future apart from term assurance. Both companies match their liabilities with their assets. Both are willing to invest overseas in doing so starve funds of British [...]