Fundamentals of Business

Bank of England

For example
Bank of England is the bankers' bank. As well as providing banking services to its customers, the Bank of England manages the UK's foreign exchange and gold reserves.
The Bank has two core purposes.
Monetary stability means stable prices and confidence in the currency. Stable prices are defined by the Government's inflation target, which the Bank seeks to meet through the decisions on interest rates taken by the Monetary Policy Committee, explaining those decisions transparently and implementing them effectively in the money markets.

And Financial stability entails detecting and reducing threats to the financial system as a whole. Such threats are detected through the Bank's surveillance and market intelligence functions. They are reduced by strengthening infrastructure, and by financial and other operations, at home and abroad, including, in exceptional circumstances, by acting as the lender of last resort.

Example of being a last resort lender

Extract from datamonitor.
Bank of England rescues Norther Northern Rock.
The Bank of England has bailed out UK mortgage lender Northern Rock by providing a short short term credit line that will allow it to carry on its operations for some time, the Financial Times has reported.

The move has been approved by the Chancellor of the Exchequer and was intended to stabilize Northern Rock's position following the recent market turmoil that has led to a liquidity squeeze in the banking markets. It is believed that Northern Rock asked for support from the Bank of England after it becam became clear that it would not be able to e refinance obligations, including securities, that are due to mature in the near future, the Financial Times revealed. Although other banks have also been affected by the liquidity squeeze, Northern Rock has been hit par particularly hard as it has a ticularly much smaller deposit base than most of its peers.

According to the BBC, although the Bank of England loan was intended to reassure the lender's customers that their money is safe, thousands have flocked to its branches and withdr withdrawn around GBP2 billion since its appeal for funds was revealed.

Economic growth is the increase in value of the goods and services produced by an economy. It is conventionally measured as the percent rate of increase in real gross domestic product, or GDP. Growth is usually calculated in real terms, i.e. inflation adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment", which is caused by growth in aggregate demand or observed output.