Financial stability
What Financial stability means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Financial stability
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Reference: Pearson Edexcel
A condition of the financial system that banking regulation is essential to maintain, preventing systemic failures such as those seen during the Global Financial Crisis.
The Bank of England regulates the UK banking industry to ensure this and prevent systemic risks that could trigger economic crises.
The position insurance provides businesses, enabling them to invest and operate confidently by pooling risks.
Topics that use Financial stability
- Risks and uncertainty (Pearson Edexcel A-Level)
- The Global Financial Crisis (Pearson Edexcel A-Level)
- The role of the central bank (Pearson Edexcel A-Level)
Related terms
- Moral hazard
- Base rate
- Business resilience
- Central bank
- Central banking
- Consumer protection
- Contingency planning
- Exchange rate risk
Using Financial stability in the exam
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