AQA A Level · 7136 · Paper 2: The national and international economy

4.2.4.2 Commercial Banks and Investment Banks

A-level only

Everything you need on commercial and investment banks, their balance sheets and how they create money, in the words examiners reward. An interactive seven-step lesson goes with it.

What's on this sheet

  1. Commercial and investment banks
  2. A commercial bank's balance sheet
  3. Liquidity, profitability and security
  4. How banks create money (credit creation)
  5. Calculations
  6. Classic question: should banks be forced to hold more capital and liquid assets?
  7. Side 2: practice tasks, where the marks go, and exam-style questions
  8. Separate answer key

The lesson in seven steps

  1. Liquidity or profit?
  2. How a deposit becomes many deposits
  3. Asset or liability?
  4. Banking calculations
  5. Banks, risk and regulation
  6. Build the chain
  7. Exam practice

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