The financial sector (OCR A-Level Economics): Flashcards

National institution managing currency, money supply & interest rates

IMF/World Bank program reducing debt burden of poorest countries

Money sent home by migrant workers from developed countries

Loans for small-scale projects in developing countries

Banks channel funds from savers to borrowers for productive uses

Financial sector ensures assets easily converted to cash

Higher savings provide funds for machinery, infrastructure & tech

Investment in capital boosts labour productivity & economic growth

Drives innovation & technological progress, improving efficiency

Education, training & healthcare improve workforce quality

Economic growth theory emphasising savings & investment

More funds for investment, boosting economic growth

Amount of capital needed to produce one unit of output

Assumes fixed capital-output ratio, neglects tech progress/labour

Low-income individuals lacking access to traditional banking