ConceptConceptDocsDocuments

CAIE A-Level Economics 9.4.4 Commercial banks

Practise identifying commercial bank functions, lending constraints and liquidity risks in banking and financial-crisis contexts.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • distinguish commercial bank functions from central bank roles and capital-market finance
  • explain how reserves, liquidity ratios or withdrawals affect banks' ability to lend
  • link risky lending and weak security to financial-crisis exposure

9.4.4—Commercial banks question 1

[Maximum number: 1]

What is not a function of a commercial bank?

A

to help firms raise finance

B

to hold cash on deposit for firms

C

to lend money to households

D

to provide savings accounts

All question bank results loaded