During 2020, Thailand’s biggest commercial bank combined with a smaller Thai commercial bank. The merger was predicted to influence both the fee charged for bank services and the amount that would be lent. Thai commercial banks belong to the private sector. As the private sector expands, an economy can move closer to a market economic system.
(a)[2]
State two factors, apart from price, that affect a customer’s choice of bank.
(b)[4]
Explain two reasons why a merger may lead to higher prices for consumers.
(c)[6]
Analyse how greater bank lending may help an economy.
(d)[8]
Discuss whether a market economy does, or does not, allocate resources in the best possible way.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Bank-provided services” …