Financial stability
What Financial stability means in Economics A-Level, as defined for AQA.
Definitions of Financial stability
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Reference: AQA
The overall soundness of the financial system that the three main regulatory bodies collaborate to maintain and that they try to prevent crises from undermining.
Maintained through the central bank's regulation of the financial system and its role in preventing excessive risk-taking.
Topics that use Financial stability
- Central banks and monetary policy (AQA A-Level)
- The regulation of the financial system (AQA A-Level)
Related terms
- Aggregate demand
- Bank run
- Capital ratio
- Consumer protection
- Credit creation
- Economic governance
- Economic indicators
- Exchange rates
Using Financial stability in the exam
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