Problem
1. Explain what is meant by a repurchase agreement and work an example to show how, by changing the terms of a repo deal, the central bank can raise and lower short-term interest rates.
2. Go to the statistical section of the Bank of England's website and make a note of (a) the rate of money growth in each of the last four quarters for which figures are available and (b) any changes in the Bank's repo rate over that same period.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.