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2.8 The role of money and financial markets

2.8 The role of money and financial markets

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Question 6

Why may a fall in interest rates encourage a producer to invest?

[1]
A

Saving becomes more rewarding for the producer

B

Insurance premiums automatically become zero

C

The cost of borrowing to buy capital may fall

D

The producer's expected revenue is guaranteed

Markscheme

2.8 The role of money and financial markets Questions

  1. GCSE
  2. /Economics
  3. /2.8 The role of money and financial markets

30 exam-style questions on OCR GCSE Economics 2.8 The role of money and financial markets, covering 2.8.1 Money as a medium of exchange, 2.8.2 Role of the financial sector, 2.8.3 Importance of the financial sector, 2.8.4 Interest rates and saving, borrowing, investment, and 2.8.5 Effect of interest rate changes. Each one has a worked solution and a mark scheme showing where the marks go.

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