Question 16
[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
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.
How this is tested
- 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