Financial institutions
What Financial institutions means in Economics GCSE, as defined for AQA.
Definitions of Financial institutions
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Reference: AQA
Commercial banks, investment banks, insurance companies, and pension funds that make up the financial sector.
Banks add their own margins to the Bank of England base rate based on risk and profit goals.
Topics that use Financial institutions
- Interest rates, saving, borrowing, spending and investment (AQA GCSE)
- The role and importance of the financial sector for the economy (AQA GCSE)
Related terms
- Business investment
- Bank of England
- Building societies
- Central banking
- Commercial banking
- Compound interest
- Cost of borrowing
- Financial intermediation
Using Financial institutions in the exam
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