Economics (AS & A Level) · May / June 2024 · Paper 33 · Question 16

A world financial crisis was partly linked to the actions of commercial banks. Which actions of the commercial banks could have led to the financial crisis?

1. Abeing subject to tight controls by the central bank over credit creation
2. Bholding reserves above the reserve ratio agreed with the central bank
3. Ctaking excessive risks by demanding insufficient security from borrowers
4. Dwidening the gap in favour of a bank's assets over liabilities

As printed in the paper