Paper 1 real-world example: money creation, the supply of money and interest rates
On Friday 10 March US regulators shut down Silicon Valley Bank (SVB) and took control of its customer deposits in the largest failure of a US bank since 2008. How did we get to this situation? The Silicon Valley Bank (SVB) is a business that specialises in funding businesses in the US technology sector particularly funding new businesses or start-ups. During the Covid pandemic, the firms SVB was funding generated...