Commercial banks serving a coastal region added online transfers to their savings accounts and increased their lending to independent hotels in the region. Table 1 shows figures for the year before and the year after these changes.
| Measure | Year before | Year after |
|---|---|---|
| Savings accounts with online transfers | 310,000 | 470,000 |
| Household deposits in these savings accounts | £1.20 billion | £1.58 billion |
| Bank loans to independent hotels | £72 million | £118 million |
| Hotel loan applications approved | 44% | 63% |
| Planned investment in hotel refurbishment | £86 million | £121 million |
Analyse how household savers and independent hotels may be affected by the banks' changes. Refer to the figures in Table 1 in your answer.
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.