A household has £8,000 of savings and a £6,000 variable-rate loan. Both rates rise by one percentage point for a year. Ignoring compounding, what is the direct change in its net annual interest position?
It worsens by £140
It does not change
It improves by £20
It improves by £140
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.