Stress tests
What Stress tests means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Stress tests
Check what you remember
Read the wording for your board, then hide it and explain Stress tests in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Checks conducted to see whether a bank can withstand severe economic shocks.
Topics that use Stress tests
- The Global Financial Crisis (Pearson Edexcel A-Level)
Related terms
- Consumer protection
- Financial stability
- Moral hazard
- Collapse of lending to businesses
- Speculation and market bubbles
- Sub-prime mortgages
Using Stress tests in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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