A freelance photographer puts spare income into a savings account at a commercial bank. A catering firm borrows from the same bank to purchase new ovens. Which option shows the correct direction of the interest payments?
The photographer pays interest to the bank, while the bank pays interest to the catering firm.
Both the photographer and the catering firm pay interest to the bank.
The bank pays interest to both the photographer and the catering firm.
The bank pays interest to the photographer, while the catering firm pays interest to the bank.
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.