A conference organiser starts week 1 with £1,200 in its bank account. It must pay venue and catering costs before most delegate fees are received. Its forecast receipts and payments are shown in the table. Assume each week's receipts are available before that week's payments are made.
| Week | Receipts | Payments |
|---|---|---|
| 1 | £800 | £3,000 |
| 2 | £700 | £2,100 |
| 3 | £600 | £1,000 |
| 4 | £5,400 | £1,200 |
The organiser's bank offers an agreed overdraft with a limit of £3,000.
Explain whether the overdraft would be suitable for the conference organiser during the four weeks. Use the data in your answer.
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.