CPD Webinar: A Level Economics: Financial Markets Financial Institutions

Summary

This webinar for economics teachers delves into the role of financial institutions within the economic syllabus, emphasizing their significance for student synoptic skills development. It covers financial institutions' basic functions, their impact on economic growth, and their integration with various economic topics. The session also introduces resources like revision crosswords and model essays to aid student learning. Additionally, it suggests innovative teaching methods, including fact walls and student surveys, to make economic concepts relatable and engaging.

Takeaways

• 📅 **Upcoming Events**: Attention is drawn to upcoming student revision workshops, including grade boosters for year 13 and flying start for year 12.
• 🔗 **Resource Availability**: Resources such as synoptic revision placemats, key term glossaries, model essay booklets, and economics revision crosswords are available for students.
• 🏦 **Financial Institutions**: The webinar focuses on understanding financial institutions and their role in the economy, which is crucial for answering questions in paper three.
• 💼 **Importance in Economic Syllabus**: Financial institutions are integral to the development economic specification, impacting areas like access to credit, banking, and microfinance.
• 🔗 **Synoptic Links**: The session explores how financial institutions link with various economic topics such as consumer spending, inequality, market structures, and the circular flow of income.
• 🌐 **Global Impact**: The importance of financial institutions in the balance of payments, labor market flexibility, and monetary policy is discussed.
• 🏢 **Types of Institutions**: Core financial institutions include retail and commercial banks, investment banks, pension funds, insurance funds, and hedge funds.
• 💰 **Profit Making**: Financial institutions aim to earn profits, which can be linked to theories of the firm and concepts like shareholder value and stakeholder impact.
• 🌟 **Macroeconomic Connections**: The role of financial institutions in facilitating economic growth, development, employment, government finances, and international trade is highlighted.
• 📊 **Evaluation Techniques**: The webinar suggests using the 'GOING APE' method for evaluation, considering assumptions, perspectives, and evidence to understand the impact of financial institutions.
• 📈 **Teaching Ideas**: Various teaching strategies are suggested, such as creating fact walls, conducting financial surveys, and visiting banks to enhance students' understanding of financial markets.

Q & A

What is the main focus of the webinar?

The main focus of the webinar is to explore the role of financial institutions in the context of financial markets and how they connect with the rest of the economic syllabus, particularly in developing synoptic skills required for paper three.

What are the upcoming student revision workshops mentioned in the script?

The upcoming student revision workshops include 'Grade Booster for Year 13' and 'Flying Start for Year 12'.

How can students book the revision workshops mentioned in the webinar?

Students can book places for the workshops either through their teachers or by booking themselves on the tutor2u website.

What resources are available to help students prepare for the synoptic paper three?

Resources available include synoptic revision placemats, an economics key term glossary, model essay booklets, and AS economics revision crosswords.

How do financial institutions link with consumer spending?

Financial institutions allow people to save and borrow, influencing consumer spending. They also provide funds for investment, which can affect long-run aggregate supply.

What is the connection between financial institutions and poverty?

Access to financial institutions can affect living standards and poverty levels. For example, around 1.5 million adults in the UK are unable to get a bank account, which can limit their ability to get jobs and pay for housing.

How are financial institutions related to market structures?

The major high street banks in the UK form an oligopoly, with five key banking groups holding around 85 percent market share. This can also be linked to concepts like contestable markets due to the role of technology in online banking.

How does the circular flow of income model incorporate financial institutions?

In the expanded circular flow of income model, financial institutions channel money from households (savings) through the banking system into investments by businesses.

What is the importance of financial institutions in understanding the balance of payments?

Financial institutions are crucial in understanding the balance of payments as they facilitate foreign direct investment and finance the purchase of imports, contributing to the current account deficit.

How do financial institutions relate to labor market flexibility?

Access to housing, which is key for labor market flexibility, often requires taking out loans and mortgages. Financial institutions play a role in providing these loans.

What are the basic types of financial institutions that students should be aware of?

Students should be aware of retail and commercial banks, which provide basic banking services like accepting deposits and providing loans, as well as investment banks that deal with foreign currency flows and provide finance for investments.