Table 1 shows changes after commercial banks tightened their lending requirements for small businesses.
| Measure | Before tightening | After tightening |
|---|---|---|
| Loan applications approved | 68% | 39% |
| Average small-business loan rate | 6% | 9% |
| Planned small-business investment | £720 million | £430 million |
| Small-business failures | 320 | 470 |
| Average savings rate | 2.0% | 3.1% |
Using Table 1, analyse the likely effects of tighter bank lending on small businesses and savers.
27 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.