Economics GCSE
Financial risk
What Financial risk means in Economics GCSE, as defined for AQA.
Definition of Financial risk
Check what you remember
Read the wording for your board, then hide it and explain Financial risk in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A higher risk of default leads to higher interest rates on loans, so unsecured loans carry higher rates than secured loans.
Topics that use Financial risk
Related terms
- Business investment
- Compound interest
- Cost of borrowing
- Financial institutions
- Interest rates
- Opportunity cost
- Reward for saving
- Saving
Using Financial risk in the exam
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