AQA Economics A-level: Financial Markets, specification 7135, 7136
*I achieved an A in my Economics A-level in 2018, across all three papers. These are the notes I used for theory-based learning of the specification
Includes:
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Functions of money and the money supply
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The role of financial markets - capital vs money, foreign exchange
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Debt vs equity
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Market interest rates and bond prices
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Commercial vs investment banking - objectives of each
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Central banks and monetary policy - contractionary vs inflationary and evaluation
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The Monetary Policy Committee (MPC) and considerations - evaluation of the MPC
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The transmission mechanism of monetary policy
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Bank of England and monetary supply - QE and Funding for Lending Scheme (FLS)
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Regulation of financial markets - PRA, FPC, FCA
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Why banks fail - moral hazard, liquidity vs capital ratios, systemic risk
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Implications of intervention, evaluation of regulation
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