A bank becomes unwilling to lend even though interest rates fall. Which consequence is most likely?
Producers' investment may not rise because access to credit is restricted
Consumers must save less because banks cannot accept deposits
Money stops acting as a medium of exchange
Government spending automatically falls
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.