Skip to content

Course home

Sign up

2.8 The role of money and financial markets

EasyMediumHard
12345678910111213141516171819202122232425262728293031
Question 17

A dairy obtains a loan from a commercial bank to install a bottling line.

Which explanation best describes how the loan supports the dairy's investment?

[1]
A

The loan adds to the dairy's sales revenue, which then pays for the bottling line

B

The bank can lend savings deposited by households to fund the firm's spending on capital

C

The bank pays the dairy interest on the loan, adding to the funds available for equipment

D

Taking out the loan is itself the investment, whether or not the bottling line is installed

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

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.

Question bank