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Home > Education and Museum > Target Two Point Zero > Frequently Asked Questions
 

Frequently Asked Questions

Many of the answers to the frequently asked questions can be found in the resource manual and quantitative easing supplement below.  
 
The sections of the manual are :
 
Section A (103KB) Introducing the challenge (includes the challenge rules, what the challenge involves, heat dates and judging). 
Section B (104KB) Monetary policy - setting interest rates to control inflation. 
Section C (196KB) The UK's Monetary Policy Framework
Section D (96KB) Assessing economic conditions and the inflation outlook
Section E (107KB) Using economic information
Section F (184KB) The economy from money to prices and guidance for using datasheets
Section G (94KB) Making your presentation (includes developing and delivering your presentation, answering judges' questions and the equipment provided).
 
How many teams are taking part in the 2013/2014 Challenge?
How many teams can we enter from our school?
Is the Challenge only for students studying economics or business studies?
How many students must we have in our team?
Can we enter a team with fewer than four students?
We are holding an internal competition to select our team and cannot meet the deadline for registration. What should we do?
Can we make changes to our team after we have registered the names of our team members?
When and where is my regional heat? What time is my presentation? When should I have to arrive at the venue and how long must I stay?
Does is matter if we are unable to stay until the end of our heat?
Can I bring other students and guests to the heats?
Due to unforeseen events, we are no longer able to take part. How do I let you know that we are withdrawing from this year’s Challenge?
 
I have a question which is not answered here. Where can I get help?

 

What is the closing date for entries?
The closing date for entries was 20 June 2013.  Next year's competition will launch in May 2014.
 

 

How are places allocated?
Demand for place was high and we had to limit the number of entries we accepted.  An electronic  ballot was held after the closing date and schools were notified of the outcome by the end of June.
 

 

How many teams are taking part in the 2013/2014 Challenge?
A list of participants can be found under Regional Heats Participants

 

How many teams can we enter from our school?
Each school or college can enter only one team. The Challenge is popular and we have a waiting list for places each year.

 

Is the Challenge only for students studying economics or business studies?
Although the Challenge will probably appeal mainly to students of economics and business, students studying any subject can take part.

 

How many students must we have in our team?
Each team must consist of four students. The composition of the team and the way in which the team members are chosen is entirely up to teachers and students.

 

Can we enter a team with fewer than four students?
You must have four students in your team. In order to ensure fairness all teams need to have the same number of team members.

 

We are holding an internal competition to select our team and cannot meet the deadline for registration. What should we do?
If you are unable to tell us the names of your team members immediately – because, for example, you intend to hold an intra-class challenge to select your team – please contact us to confirm your place in the regional heats and agree a new date for registering your team.

 

Can we make changes to our team after we have registered the names of our team members?
Team membership should not change during the competition except in exceptional circumstances and with the prior agreement of the Bank.

 

When and where is my regional heat? What time is my presentation? When should I have to arrive at the venue and how long must I stay?
We will send you details about the arrangements for the day in due course.

 

Does is matter if we are unable to stay until the end of our heat?
We realise that it is a particularly busy time of year and that you may prefer to come only for the morning or the afternoon or for your presentation slot. We will notify the winners and runners-up if they are not present at the end of the event to hear the results, which will also be posted on the Target Two Point Zero website at the end of the event.

 

Can I bring other students and guests to the heats?
You may bring guests to your heat. We will contact you about this nearer the time.

 

Due to unforeseen events, we are no longer able to take part. How do I let you know that we are withdrawing from this year’s Challenge?
If at any stage you wish to withdraw, please inform us at the earliest opportunity. You can contact us via the methods provided at the bottom of this page. You can also use the Withdrawal form (41KB)
 

Taking Part

 

What is the aim of the Challenge?
Your team has to assess the state of the economy and the outlook for inflation and decide what level of interest rate you would set, and any other monetary recommendation, to achieve the Government's inflation target of 2.0%.  
 

 

What am I expected to do?
You must decide whether or not to change the interest rate from the rate set by the Monetary Policy Committee (MPC) and if so whether to increase it or decrease it, and by how much. Decisions on other policy recommendations are at the discretion of the team. There is no right or wrong answer. It is a matter of judgement. Having made your decision, you must prepare and give a short presentation to a panel of judges arguing the case for your decision. The judges will then ask you some questions.

 

What MPC rate should we take as the basis for our decision?
Your recommendation to put rates up, or down, or keep them the same is in relation to the rate set by the MPC at the meeting prior to the team making its presentation to the judges. 

 

What about quantitative easing?
The essence of this year's Challenge remains for teams to decide whether or not to change the interest rate from the rate set by the Bank's Monetary Policy Committee. But since March 2009, the Bank has been injecting money into the economy to boost spending to meet the inflation target. This is often referred to as quantitative easing and like the MPC, teams might want to consider the option of injecting or withdrawing more money from the economy to meet the inflation target. To help teams with this, they should read the supplement to the Target Two Point Zero resource manual entitled 'Quantitative easing - injecting money into the economy'. It explains how quantitative easing works and provides guidance to teams on offering their thoughts on measures to change the supply of money in the economy in addition to explaining their decision on the interest rate. It is important for teams to read this supplement in conjunction with the Target Two Point Zero resource manual, in particular where the team's monetary policy decision is mentioned.

 

Do we have to reach agreement about the interest rate?
No. But differences of opinion must be explained.  

 

What version of PowerPoint should we use?
Presentations must be Microsoft PowerPoint 2010. They should be stored on USB memory stick but the data should not be compressed ie no zip files.

 

I have a question which is not answered here. Where can I get help?
You can contact the Target Two Point Zero team:

E-mail: targettwopointzero@bankofengland.co.uk

Tel: 020 7601 5366

Key Resources

​Resource manual (680KB)
Quantitative Easing supplement (41KB)
Withdrawal form (41KB)

 

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