RiverWorks Ltd wants to build a new workshop. A bank offers a loan and payment services, while an insurance company offers cover against fire and theft. The loan would allow production to begin sooner, but repayments would continue even if sales were weak. Evaluate the importance of the financial sector to RiverWorks Ltd and the wider economy.
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.