Economics B A-Level
Liquidity and solvency
What Liquidity and solvency means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Liquidity and solvency
Check what you remember
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Reference: Pearson Edexcel
Emergency liquidity is provided to banks that are illiquid but solvent, whereas insolvency is usually handled by the government.
Topics that use Liquidity and solvency
- The role of the central bank (Pearson Edexcel A-Level)
Related terms
- Base rate
- Central bank
- Central banking
- Financial stability
- Inflation targeting
- Inflationary pressures
- Macroprudential regulation
- Monetary policy
Using Liquidity and solvency in the exam
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