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
- Commercial and investment banks
- A commercial bank's balance sheet
- Liquidity, profitability and security
- How banks create money (credit creation)
- Calculations
- Classic question: should banks be forced to hold more capital and liquid assets?
- Side 2: practice tasks, where the marks go, and exam-style questions
- Separate answer key
The lesson in seven steps
- Liquidity or profit?
- How a deposit becomes many deposits
- Asset or liability?
- Banking calculations
- Banks, risk and regulation
- Build the chain
- Exam practice
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