Explain why ‘a healthy banking system is required to promote economic growth’.
(c)[6]
Explain what caused the fall in the price of oil and analyse whether the article suggests that the fall in the price of oil was the sole cause of the economic downturn in various economies.
(d)[7]
Consider the OECD's concerns and recommendations about the condition of the global economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Through its open-market operations, the central bank creates money. By purchasing bonds with cash, it raises the amount of money held by banks and financial institutions. This would affect interest rates and increase the potential for lending in the economy.” …