Discuss the key functions of the Bank of England. Describe the main responsibilities of the Federal Open Market Committee

        Before we take a look at the detailed overview about the functions of Bank of England lets throw some light on Bank of England. Bank of England is one of the prime model banks for world on basis of it most of the banks are build. Furthermore, it is central bank of U.K.

Bank of England key functions

The key responsibility of the bank of England is to retain financial stability of the U.K further it is the official custodian for the gold reserves of the U.K government.  It has to further ensure the economic stability of the country and is the last resort lender.

Let’s take a further dive about the key functions of BOE.

Economic Stability

    It refers to provide a stable economic environment in the country by maintaining the value of the currency. It further maintains the prices by lowering or raising as per the government need.

Financial Stability

    It refers to the stability of the whole financial system so that confidence in the system remains as whole, other financial institutions and market remains there.

Gold Reserve keeper

    The bank is the official keeper and guardian of not only the gold reserves of the England but many other countries, as of 2014 it was estimated to have gold bars for the value of £142 billion.

Last Resort Lender

    The bank of England is the ultimate resort for lending cash to other commercial banks that face shortage of cash. [4]

Federal Open Market Committee Responsibilities

    This committee is responsible for supervision of the open market operations, these operations ultimately effects the federal funds rates that further effect the whole market

    Bank of England is one of the prime bank role models in which many other banks are made and it has the responsibility to ensure market stability of the UK and other economic conditions. Furthermore, the FOMC is the committee that ensures the whole process.

References  of the Federal Open Market Committee