Economics A-Level
Systemic risk
What Systemic risk means in Economics A-Level, as defined for AQA.
Definitions of Systemic risk
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Reference: AQA
The danger that the failure of one financial institution could trigger a domino effect, leading to the collapse of the entire financial system.
The risk that the failure of one large universal bank can trigger a domino effect, collapsing the wider financial system.
Topics that use Systemic risk
- Commercial banks and investment banks (AQA A-Level)
- The regulation of the financial system (AQA A-Level)
Related terms
- Maturity transformation
- Bank run
- Capital ratio
- Commercial banks
- Consumer protection
- Credit creation
- Financial intermediation
- Financial markets
Using Systemic risk in the exam
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