ILO:
a) Consideration of:
o asymmetric information
o externalities
o moral hazard
o speculation and market bubbles
o market rigging
a) Consideration of:
o asymmetric information
o externalities
o moral hazard
o speculation and market bubbles
o market rigging
See theory & examples sheet
MF in the financial sector
For each cause of market failure, explain what it means and how it relates to the financial crisis:
o asymmetric information
o externalities
o moral hazard
o speculation and market bubbles
o market rigging
o asymmetric information
o externalities
o moral hazard
o speculation and market bubbles
o market rigging
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RBS fined over Libor
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The Bank That Almost Broke Britain - BBC HD
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Economics paper 3:
Evaluate the likely microeconomic and macroeconomic effects of market failure in the financial sector. (25 marks)
Evaluate the likely microeconomic and macroeconomic effects of market failure in the financial sector. (25 marks)
Revision webinar:
The first video focuses on theory, the second on application
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Financial Market Failure
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Financial Market Failure (2019 Update)
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Paper 3 exam question
With reference to the information provided in the video and your own knowledge, evaluate the likely microeconomic and macroeconomic effects of market failure in the financial sector. (25 marks)
Consequences of financial crisis (student webinar recording) - revision video