the financial sector economics alevel - The Student Room

the financial sector economics alevel

could someone please briefly explain to me this whole topic as im struggling to get my head around it😭

financial sector is basically linked to the financial crash.
What the market failure says is banks become dependent on central bank and gov bailing them out which is bad because it creates moral hazard.
Moral hazard means banks will do risky things because they believe its ok i will get bailed out

Financial Markets is pretty straightforward. It just explains what they do like help people save and lend money

Reply 2

amina1122

Original post by pdha

financial sector is basically linked to the financial crash.
What the market failure says is banks become dependent on central bank and gov bailing them out which is bad because it creates moral hazard.
Moral hazard means banks will do risky things because they believe its ok i will get bailed out
Financial Markets is pretty straightforward. It just explains what they do like help people save and lend money