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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 1

Interest rates are cut, but firms expect demand for their products to fall sharply. What is the most likely effect on investment?

[1]
A

Investment must rise because borrowing is cheaper

B

Investment may remain low because expected returns are poor

C

Investment must fall by the same percentage as the interest rate

D

Saving and investment are the same decision

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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