The Impact Of Financial Literacy On The Global Financial Crisis In The UK Assignment Sample

The Impact Of Financial Literacy On The Global Financial Crisis In The UK Assignment by New Assignment Help

  • 54000+ Project Delivered
  • 500+ Experts 24x7 Online Help
  • No AI Generated Content
- +
35% Off
£ 6.69
Estimated Cost
£ 4.35
10 Pages 2589Words

Introduction of The Impact Of Financial Literacy On The Global Financial Crisis In The UK Assignment

Get free written samples from expert assignment writers and academic writing services in UK.

One of the main aspects of this report is to evaluate the impact of financial literacy on the global financial crisis in the UK. Both the mental and physical well-being of the citizens of the UK has been evaluated for the purpose of completing the report. During the financial crisis within the UK market, certain factors and their impact should need to be ascertained such as the mark to the market accounting changes and financial performances analyzed. Ineffective valuation of the assets from 2010 to 2020 makes so many financial changes to the evaluation of the business strategies.

1. Identification and discussion of the recent global financial crisis

1.1 Factors that are associated with evaluating the financial crisis

The global financial crisis from the year 2007 to the year 2009 has been discussed in the report. Financial literacy impacts both long and short-term financial decisions of the business (, 2022). The importance of financial literacy comes into the mind of the consumers as well as the saving and the spending behavior of the consumer's changes after they have started to learn about the financial buying and lending strategies. As opined by Krishnarajan (2019), positive growth analysis and evaluation of the conceptual abilities of financial literacy make a sustainable impact on the valuation of the total portfolio analysis within the businesses. Ineffective spending habits and financial planning strategies make some strange movement in the evaluation of the business activities within the UK market.

 Impact of financial literacy on economic crises

(Source:, 2022)

Certain tools and techniques implemented by the rating agencies make a decent impact on the valuation of the assets and financial strategic evaluation. Internat5ional grade rating strategies have been implemented by the top lending UK in this period to ascertain the financial wealth and financial analysis within the UK market. As narrated by Nadeem et al. (2019), the infighting of financial regulations and the changes in the business policies of the marketing policies made a tremendous impact on the financial growth analysis of the business. The securitization of loans and evaluation of the new business techniques have helped in projecting the financial gaps and economic strategies. Due to several financial changes and an increase in the rate of growth within the business in the UK, it has been observed that the changes in business techniques make an impact on financial literacy. Short-term investment horizons and their impact on the volume are called economic crises in the UK market (Economictimes.UK, 2022). 

1.2 Most recent cases in the UK

In this regard, one of the main reasons behind the financial crisis is that the risk-taking and the macroeconomic environment have a negative impact on the overall economic growth of the UK. The increase in the interest rate and total volume of the deficit in the financial growth makes a negative impact on the sustainable business activities of the organization. As evaluated by Oravský et al. (2020), the changes in the financial activities and making sustainable changes to the business policies make promotional changes to the portfolio analysis. In the 21st century, the financial crisis of the year 2007-08 makes i8ts negative impact on the global UK market as well. In the 2007-08 global financial crisis, millions of the UK citizens became homeless and the total rate of interest provided by the UK commercial banks has been reduced by more than 6.5% in this period (, 2022). The outflow of the cash and cash equivalents into the hands of the UK corporate institutions is reduced to 1.75% in this period (Gov.UK, 2022).

1.3 The impact of the financial crisis on individuals

The global citizens started to keep their assets as a mortgage in exchange for securing themselves from the financial crisis. The total GDP of the UK was reduced to 1% in the month of June 2008 which was less than the GDP of the UK in the last 45 years (, 2022). As argued by Livanos and Papadopoulos (2020), the reduction of the total equity and the increase of the total debt of the business as it helped the worst financial conditions in the UK. As idealized by Puyana (2018), the evaluation of the financial results of the UK for a certain period of time has helped in measuring the financial changes and procedures within the business. Thus, it seems that the individuals are affected vastly due to the financial crisis in this period (Yahoo, 2022). 

1.4 Concerned areas

Based on the above discussion, it can be concluded that the various kinds of factors have affected the financial crisis and economical changes make an impact on the financial technological impact within the business. The bad economic assumptions and the fluctuation of monetary policies from the year 2004 to 2006 made an impact on the overall financial crisis of the UK market. Changes in the Basel II banking capital rules make a tremendous impact on sustainable business changes and financial allocation policies. The changes in the pro-cyclical regulation of the loans loss reserves make an impact on several important techniques to evaluate the shadow banking strategies within the UK.

2. Critical evaluation of the financial literacy

2.1 Introduction to the financial literacy

The various types of financial skills and financial management strategies have to be evaluated to discuss investing and budgeting techniques in the business. As narrated by Hirigoyen and Basly (2019), the application of the managerial techniques and evaluation of several financial skills and managerial skills into the techniques. The prospects of financial literacy are indulged with managing the total volume of money of the business. Improving learning schemes and taking strategic improvements within the business can be the prospects. The application of several important business issues and techniques has to be measured to evaluate the financial strategies within the business. Adequate financial techniques and proper evaluation of the financial policies have to be mentioned in such a manner that can be effective to visualize several financial strategies and financial analysis of the business.

2.2 Impact of the macroeconomic factors

In financial literacy, proper concern about the macroeconomic factors such as financial analysis, evaluations of the business and strategic changes have been considered. The proper and sustainable information about the changes in the rate of inflammation and increase or decrease in the volume of the total level of unemployment has been evaluated. As narrated by Lewis and Witoelar (2021), the adaptation of the business techniques and utilization of the business techniques have to be measured in such a manner that it will help in the business evaluation and sustainable financial techniques within the organization. The adequate level of determination and the technologies need to be properly mentioned for the purpose of evaluating the financial volume and certain changes to the business strategies. According to financial literacy, the impact of GDP on the present operational activities of the UK corporate business strategies is measured to evaluate the areas of making changes in the business volume (Puyana, 2018).

 Estimation of the inflation rate in the UK

(Source: Gov.UK, 2022)

2.3 Impact of financial literacy on the economy

The main area that the financial institutions require to be considered is to evaluate the financial strategies within the business. The adaptation of the business techniques helped in making the business evaluation of the financial exploitation of the economy. As idealized by Livanos and Papadopoulos (2019), the analysis of the financial planning and estimation of the total changes in the business patterns of the global countries. It helps in making an adequate impact on the financial techniques and the balance sheet of three businesses became more relevant and sustainable. The changes in the total level of expectation and the valuation of the business strategies have helped in reducing the level of income inequality in the global market. The help of\ implementing specific areas of the financial management and making changes to the financial analysis can make an impact on the structural changes in the policies. According to Martin Lewis, financial literacy improves the quality of financial services and the growth of the economy can be maintained with the help of financial literacy (, 2022).

 Need for financial literacy in the UK

(Source: Economictimes.UK, 2022)

3. The intervention and the measures taken by the public and private sectors

3.1 Inflation

The private and public sector authorities can be able to fight against the increase in the rate of inflation in the UK market. The increase in the volume of the total government tax rates and making a specific reduction in the volume of the total spending can help in reducing the overall rate of inflation. As narrated by Hirigoyen and Basly (2019), evaluation of the contractual monetary policies and increase in the volume of the total bond price make some positive impact on the total rates of inflation. The private sector should need to increase the total volume of the supply of the goods as it helps in increasing the volume of the financial growth and development of the country. However, controlling the aggregate volume of demand can be considered adequate in restricting the volume of inflation in the UK.

3.2 Unemployment

 Impact of the financial crisis on employment

(Source: Economictimes.UK, 2022)

For the purpose of reducing the total level of unemployment within the UK market, the financial strategies and proper marketing projections have to be implemented. The effective evaluation of the business strategies has to be implemented in such a manner as both the private and public sector organizations can be able to increase the total volume of employment. As cited by Krishnarajan (2019), the strategic techniques and implementation of the necessary financial policies have helped in maintaining the financial volume within the business. Specific projections about the business techniques and classification of the financial results have to be implemented for the purpose of increasing the total level of unemployment in the UK.

3.3 GDP

The private and public sectors need to concentrate on the profitable sectors of their operational activities as it will help in maintaining sustainable financial performances within the organization. As narrated by Nadeem et al. (2019), evaluation of the financial results and strategic policies has to be properly evaluated to classify the increment into the volume of GDP of the UK. Several gaps in financial literacy need to be covered to raise the total level of growth in the GDP of the business (, 2022).

3.4 Gap in financial literacy

For the purpose of promoting the successful evaluation of the financial techniques, it needs to be measured to evaluate the several important aspects of the government (Oravský et al. 2020). The inadequate spending and cost analysis of the various aspects of the financial techniques have to be projected properly to derive the future opportunities within the business. However, it is not possible for the business to maintain sustainable growth analysis and proper financial evaluation of the organization. 

4. Conclusion

Based on the analysis, it can be evaluated that changes in the financial strategies and tactics within the business are considered the impact of the financial crisis within the UK. The increased rate of inflation and the total volume of the GDP of the UK has been reduced which indicates that the financial performance has declined here. Critical evaluation of financial literacy has been measured with the help of the introduction of financial literacy into the UK market, estimation of the various types of macroeconomic factors, and visualizing the impact of financial literacy on the economy. However, it can be pointed out that strategic evaluation and financial analysis had a negative impact on the overall performance evaluation of the global market.

5. Recommendation

Both the private and the public sector organizations should need to fight for the proposal of the full reserve banking system into their organizations. It is recommended to identify the causes of the financial crisis as it helped in overcoming the situation. The non-essential cost from the budget needs to be eliminated as it helped in increasing the volume of the total GDP. Adaptation of the changes into the selling strategies and proper cash flow evaluation helped in improving the business from the financial crisis.

Reference list


Lewis, BD, and Witoelar, F (eds) 2021, Economic Dimensions of Covid-19 in Indonesia : Responding to the Crisis, ISEAS - Yusof Ishak Institute, Singapore. Available from:, [Accessed on: 15/04/2022]

Livanos, I, and Papadopoulos, O 2019, The Rise of Precarious Employment in Europe : Theoretical Perspectives, Reforms and Employment Trends in the Era of Economic Crisis, Emerald Publishing Limited, Bingley. Available from:, [Accessed on: 15/04/2022]


Hirigoyen, G. and Basly, S. 2019, "The 2008 financial and economic crisis and the family business sale intention: A study of a French SMEs sample", Journal of Small Business and Enterprise Development, vol. 26, no. 4, pp. 571-594.

Krishnarajan, S. 2019, "Crisis? What crisis? Measuring economic crisis in political science", Quality and Quantity, vol. 53, no. 3, pp. 1479-1493.

Nadeem, M., Yang, J., Akhtar, T., Dong, W. and Niazi, M. 2019, "Does Really Economic Freedom Matter for Growth in South Asia? Empirical Evidences from Pre-Economic Crises and Post-Economic Crises Period", Asian Economic and Financial Review, vol. 9, no. 1, pp. 52-63.

Oravský, R., Tóth, P. and Bánociová, A. 2020, "The Ability of Selected European Countries to Face the Impending Economic Crisis Caused by COVID-19 in the Context of the Global Economic Crisis of 2008", Journal of Risk and Financial Management, vol. 13, no. 8, pp. 179.

Puyana, A. 2018, "Crisis económica y crisis de la teoría económica. Notas para el debate", Perfiles Latinoamericanos, vol. 26, no. 51, pp. 351-378.

Online articles

Busienss, 2022, Business performance and its application its business Available at:, [Accessed on: 15/04/2022]

Economictimes. UK, 2022, Macro economic factors in business,, 2022, Role of accounting, Available at:, [Accessed on: 15/04/2022]

Gov.UK, 2022, Interpretation of management accounting techniques, Available at:, [Accessed on: 15/04/2022]

Websites, 2022, Changes into the managerial issues in business, Available at:, [Accessed on: 15/04/2022]

Yahoo, 2022, Annual report and accounts 2021, Available at:, [Accessed on: 15/04/2022]

35% OFF
Get best price for your work
  • 54000+ Project Delivered
  • 500+ Experts 24*7 Online Help

offer valid for limited time only*