The financial sector (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
13 questions from this quiz
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Practise the questions
13 questions from this quiz
What is a central bank responsible for managing?
What is a central bank responsible for managing?
Currency, money supply & interest rates
What is the aim of the HIPC initiative?
What is the aim of the HIPC initiative?
Reduce debt burden of poorest countries
What are remittance payments?
What are remittance payments?
Money sent home by migrant workers abroad
What role do banks play through intermediation?
What role do banks play through intermediation?
Channel funds from savers to borrowers
What does liquidity provision by the financial sector ensure?
What does liquidity provision by the financial sector ensure?
Assets can be easily converted to cash
How do higher savings rates promote economic development?
How do higher savings rates promote economic development?
Enable more investment in capital goods
How does investment in education and training promote development?
How does investment in education and training promote development?
Improves workforce quality & productivity
What does investment in R&D primarily drive?
What does investment in R&D primarily drive?
Innovation & technological progress
What is the multiplier effect in the savings-investment relationship?
What is the multiplier effect in the savings-investment relationship?
Investment generates income & savings
In the Harrod-Domar model, what two factors determine economic growth?
In the Harrod-Domar model, what two factors determine economic growth?
Savings rate & capital-output ratio
What does a lower capital-output ratio indicate in an economy?
What does a lower capital-output ratio indicate in an economy?
Greater efficiency in production
What is a key limitation of the Harrod-Domar model?
What is a key limitation of the Harrod-Domar model?
Assumes fixed capital-output ratio
Who are the target recipients of microfinance services?
Who are the target recipients of microfinance services?
Low-income individuals lacking banks