The Financial Sector and the Macroeconomy (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
Which is NOT a critical function performed by the financial sector?
Which is NOT a critical function performed by the financial sector?
Setting government budgets
What type of banks are the high-street banks serving households and small firms?
What type of banks are the high-street banks serving households and small firms?
Retail banks
How do banks generate profits from their core operations?
How do banks generate profits from their core operations?
Loan rates exceed deposit rates
Why do mortgages typically have lower interest rates than other forms of borrowing?
Why do mortgages typically have lower interest rates than other forms of borrowing?
They are secured against property
What does LIBOR stand for in the London interbank market?
What does LIBOR stand for in the London interbank market?
London Interbank Offered Rate
How does the price of a bond relate to the rate of interest?
How does the price of a bond relate to the rate of interest?
Price varies inversely with interest
What is securitisation in banking?
What is securitisation in banking?
Bundling assets to sell as securities
What moral hazard problem did banks face before the 2008/09 crisis?
What moral hazard problem did banks face before the 2008/09 crisis?
Believed 'too big to fail', took risks
What key problem do banks face in developing countries' rural areas?
What key problem do banks face in developing countries' rural areas?
Asymmetric info and weak collateral
What does the capital adequacy ratio measure for banks?
What does the capital adequacy ratio measure for banks?
Capital relative to risk-weighted assets