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Why is financial regulation necessary?
A
A bank collapse can wipe out ordinary savers and spread damage through the whole economy.
B
A bank collapse affects only its shareholders and cannot cause damage elsewhere in the economy.
C
A bank collapse removes all financial risk because other banks immediately replace its loans and deposits.
D
A bank collapse automatically increases ordinary savers’ deposits and strengthens the whole economy.
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2.4.4 The regulation of the financial system Flashcards
34 flashcards on AQA A Level Economics 2.4.4 The regulation of the financial system: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.