Monetary Policy and Changing Financial Landscape

MONETARY POLICY AND CHANGING FINANCIAL LANDSCAPE
Monetary policy
[DATE]
[COMPANY NAME]
[Company address]

Table of Contents
Answer to question no-1..................................................................................................................1
Answer to question no-2..................................................................................................................2
References........................................................................................................................................4
1

Answer to question no-1
The financial institutions, financial markets and the financial system are operated on
domestic national and firm-specific levels which is intended to establish the linkage between the
investors, depositors, money, credit and fiancé which are used as medium of exchange in the
economic.
The economic growth of the UK has increased by 1.8% since last three years which reflects the
increase in the investment habits of the people, availability of the labour force and capital
consumption. The financial institutions and financial system have increased the saving rate and
also have also resulted to increased return on capital employed and fixed interest rate available
for the investors. The financial market has also expanded due to the economic growth. The
financial system has been more transparent due to strengthen economic condition of the UK.
Demographics- The major factors which have highly affected the financial market is the
increasing the population rate and increased foreign exchange rate which have increased the
investment rate of return available for the investors. It has also resulted to increased rate of beta
of the investment scriptures in terms of investment purpose of the investors.
Social- The value, belief, culture of the people in UK showcases that investors in UK are more
aggressive towards investment. It has increased the flow of the capital in UK economy and
resulted to easy availability of the funds for these financial institutions to expand their business.
Technological forces- With the advances in the technologies, financial institutions adopted the
online capital market where investors and borrowers could easily fulfil their capital need. It also
resulted to transparent financial market and lower down the financial turmoil of the financial
institutions. It is the major forces in keeping the financial institutions more transparent towards
the financial growth.
Ethical- It is considered that due to the increasing investment options and high flow of capital
flow in UK economic market, there has been increased the chance of the insider trading and
capital scam. It has arisen due to the less transparent reporting frameworks and manipulation of
the financial data. The financial market has faced high turmoil due to the non-ethical financial
2