Skip to content

Course home

Sign up

2.4 Financial markets and monetary policy (A-level only)

EasyMediumHard
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061626364656667686970717273
Question 9

A sharp, unexpected drop in commercial property values could trigger a systemic crisis in the financial system.

This is most likely to occur if, following the fall in these asset values, major retail and commercial banks

A

have a low ratio of capital to their risk-weighted assets.

B

have strictly complied with stress-testing guidelines set by the Financial Policy Committee (FPC).

C

maintain a significant buffer of highly liquid sovereign bonds.

D

have immediate access to emergency liquidity facilities provided by the central bank.

Markscheme

2.4 Financial markets and monetary policy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.4 Financial markets and monetary policy (A-level only)

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.

Question bank