All questions carry equal marks.
The government recently transferred responsibility for monetary policy from the Treasury to the Bank of England. Outline the main reasons for the development of the Eurocurrency markets and explain how the markets work. In the context of recent proposals to change the regulatory framework, discuss the main objectives behind regulation of the banking and financial system. Assess the impact of recent changes in trading practices upon the operational efficiency of the London Stock Exchange. Evaluate the prospects for the establishment of the Euro as the single currency within most European Union countries in line with the timetable agreed in the Maastricht treaty.