Which of the following is NOT a responsibility of the Bank of England?

The correct response to the question identifies that issuing loans to small businesses is not a responsibility of the Bank of England. The Bank of England primarily serves as the central bank of the United Kingdom and has several key functions, but direct lending to small businesses does not fall under its remit.

Monetary policy is one of the core responsibilities of the Bank of England, as it aims to maintain price stability and control inflation through interest rate adjustments and other monetary tools. The Bank is also tasked with ensuring financial stability, which involves regulating and overseeing the financial system to mitigate risks and prevent systemic crises. Managing foreign reserves is another critical function, as the Bank holds and manages the UK's foreign currency reserves to support monetary policy and the stability of the currency.

In contrast, the responsibility of directly issuing loans to small businesses generally lies with commercial banks and financial institutions rather than with the central bank. The Bank of England's focus is more on macroeconomic stability and oversight rather than direct involvement in the lending processes to individual businesses.