The difference between a commercial bank and an investment bank
A commercial bank takes deposits from savers and lends money to households and businesses. An investment bank helps companies and governments raise large sums of money in financial markets.
Real World
Barclays operates as a commercial bank serving millions of everyday customers with current accounts and mortgages, while Goldman Sachs acts as an investment bank, advising companies like ARM on multi-billion-pound stock market listings.
Exam Focus
Don't conflate the two: commercial banks create money through lending; investment banks facilitate capital raising — a common exam error.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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