Which one of the following statements about the roles of financial institutions in a modern economy is correct?
Commercial banks are primarily responsible for managing national debt and issuing government treasury bonds.
Financial intermediaries facilitate the flow of funds from economic agents with surplus funds to those with a shortage of funds.
The central bank is responsible for setting specific retail interest rates on standard commercial mortgage products.
Investment banks focus exclusively on providing short-term personal savings accounts for retail consumers.
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.