What is one duty of the Prudential Regulation Authority (PRA)?

The Prudential Regulation Authority (PRA) is primarily responsible for promoting the safety and soundness of financial institutions it regulates, thereby ensuring the stability of the financial system as a whole. One of its key duties is to monitor the risks that firms pose to the financial system and to regulate their activities to mitigate these risks. This includes assessing the capital and liquidity positions of banks and other financial firms, setting regulatory standards, and ensuring that these firms have robust risk management frameworks in place. By focusing on financial soundness, the PRA works to prevent failures that could lead to systemic issues, protect consumers, and uphold confidence in the financial system.

The other options represent functions that fall outside the specific mandate of the PRA. For instance, managing the money supply is typically a responsibility associated with central banking authorities, while providing loans to consumers and controlling international trade relate to different sectors and regulatory bodies. Therefore, the role of the PRA revolves around maintaining the soundness of financial institutions, which is encapsulated in the correct choice.