A taxi firm operates six vehicles. Unexpected repairs may require payments of £300 on one day and £1,200 on another. The firm cannot predict when repairs will be needed or how much each repair will cost.
Explain why an overdraft may be suitable for the taxi firm.
82 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.