Risk transformation
What Risk transformation means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Risk transformation
Check what you remember
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Reference: Pearson Edexcel
Part of the intermediation process in which banks manage the risk of default on behalf of depositors.
Topics that use Risk transformation
- Role of banks in the economy (Pearson Edexcel A-Level)
Related terms
- Business investment
- Collateral
- Consumer spending
- Credit provision
- Economic growth
- Financial intermediation
- Interest rates
- Saving
Using Risk transformation in the exam
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