The Bank of England cuts Bank Rate. A market garden is deciding whether to borrow from a commercial bank to install a new irrigation system.
How is the cut most likely to affect the market garden?
It is likely to borrow for the system from its commercial bank at Bank Rate
The interest it pays on a loan for the system is likely to be lower
The interest it pays on a loan for the system is likely to be higher
It is likely to borrow for the system directly from the Bank of England
60 exam-style questions on AQA GCSE Economics 2.5 The role of money and financial markets, covering 2.5.1a Functions of money, 2.5.1b Definition of money, 2.5.2a Agents in the financial sector, 2.5.2b The role of the Bank of England, and 2.5.2c The role of high street banks. Each one has a worked solution and a mark scheme showing where the marks go.