Banking & Economic/Free Goods [GCSE]

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  • Created by: Tosin
  • Created on: 26-11-11 14:26


Ø  This is a major industry in most countries. It helps people to borrow, lend, and carry out a range of other financial activities. It encourages the growth of output of Economics.

Some examples of banks are:

  • Central Banks
  • Commercial Banks
  • Investment Banks
  • Mortgage Banks, etc.
  • Central Bank:

The Central Bank:

Ø  This is the single most important and influential bank in a country.

Ø  The central bank is a government owned bank which provides banking services to the government and commercial banks.


  • It acts as a banker to the government.
  • It acts as a banker to commercial banks.
  • It acts as a lender of last resort.
  • It manages the national debt.
  • Holds the country’s reserve of foreign currency and gold.
  • It issues bank notes.
  • Implements the government’s monetary policies:  with the prime aim of keeping inflation low and steady. This involves controlling the money supply and influencing interest rates throughout the economy,


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