Money and banking

Which option would be the least likely to function as a store of value during a time of rapid inflation?

Feb/March 2019

Banks reduce interest rates. What effect is this likely to have on borrowing and saving?

Feb/March 2020

Which characteristic of money is the most important?

Feb/March 2020

What role does a central bank perform for the general public?

Feb/March 2021

What is one function of commercial banks?

Feb/March 2023

The table sets out information on four financial institutions. Which one is most likely to operate as a commercial bank?

Feb/March 2024

What role does a central bank perform for the general public?

Feb/March 2025

Cigarettes have been used as money in exceptional situations. What is the most likely explanation for why they are not acceptable as money in normal circumstances?

May/June 2015

A businesswoman is applying to a bank for a $10$-year loan. She has identified her four most valuable possessions, any of which could be offered to the bank to secure the loan. Which item would the bank be least likely to accept as security for the loan?

May/June 2015

What is the common reason that citizens have confidence in their country’s banknotes?

May/June 2016

In what circumstances will a central bank serve as lender of last resort to a commercial bank?

May/June 2016

What role is performed by a central bank?

May/June 2016

In 2014, the Government of Bangladesh provided loans to the four large state-owned commercial banks after they had run into trouble from lending to high-risk customers. State-owned commercial banks are now less significant. Privately-owned commercial banks have grown in both scale and importance and now account for 75% of total deposits. The economy is shifting away from a mixed economy towards a market economy.

May/June 2016

People made their own goods at first. Later, they chose to specialise. They came together as a group and exchanged their skills with one another, but no money was used. What is not likely to happen as a result for the group?

May/June 2017

Which statement concerning financial matters is correct?

May/June 2017

Money and banking are strongly connected. Money has several roles, one of which is serving as a standard for deferred payments, and it is used to pay workers, often paid straight into their bank accounts. The amount workers receive varies according to the industry they work in. In some countries, lending by both private sector banks and public sector (state-owned) banks has risen in recent years.

May/June 2017

In 2015, several German commercial banks cut the already exceptionally low interest rates on deposit accounts. The German Government wanted this change to persuade more Germans to purchase shares in German firms. The ability of German firms to buy capital goods would rise if they could issue more shares or borrow more from commercial banks.

May/June 2017

What is one role of a central bank?

May/June 2018

Which service is not offered by a commercial bank?

May/June 2018

Which of the following is not a function of a central bank?

May/June 2018

At the beginning of 2016, the central bank of the Republic of Turkey reduced interest rates on five occasions. This happened even though inflation stood at 7.6%. The economy combined a low saving rate with weak investment. To boost economic growth, the Turkish government announced a reform package that included subsidies for research and investment.

May/June 2018

What advantage do coins have that makes them more suitable than banknotes for use as money?

May/June 2019

It is anticipated that consumers will rely less on paper money. What is the most likely explanation for this?

May/June 2021

What does the term money supply mean?

May/June 2021

Bangladesh’s money supply rose each year between 2010 and 2018. Variations in the money supply and the foreign exchange rate may influence a government’s macroeconomic objectives, such as full employment. Mergers among commercial banks in Bangladesh have been uncommon, even though its banks are larger than many of its other firms.

May/June 2021

Which activity is matched correctly to the organisation that provides it?

May/June 2022

Which activity is correctly matched with the organisation that provides it?

May/June 2022

Angola experienced a marked rise in its money supply during 2019. The National Bank of Angola was worried that inflation would stay above 17% and damage Angola’s producers. The Angolan government had been focusing on reducing unemployment, which fell from 10% in 2010 to 7% in 2019.

May/June 2022

Which would be least likely to function as a store of value during a period of rapid inflation?

May/June 2023

People who save are harmed as inflation increases to $4.4\%$. Which function of money is mainly involved in this statement?

May/June 2023

A function of money is to serve as a measure of value. What is meant by this?

May/June 2023

Which row indicates a characteristic of money and a function of money?

May/June 2023

At what point will a central bank serve as lender of last resort for a commercial bank?

May/June 2023

Which function of money serves as a measure of value?

May/June 2024

What role does a central bank play in an economy?

May/June 2024

Tajikistan is among Asia’s low-income economies. Its currency, the somoni, has the main features of money. More than one million Tajik workers are employed overseas, mainly in Russia. In 2020, the Tajik government feared that the country might enter a recession, which could lead to lower tax revenue. Even with this risk, some Tajik firms purchased new capital equipment.

May/June 2024

Which of the following is not a type of money?

May/June 2025

In 2009, a digital currency named Bitcoin was created. From 2009 to 2014, more people and firms began to accept it as a medium of exchange and store of value. Financial experts have urged that digital money should be regulated by central banks. One concern is that it could raise the money supply and lead to inflation.

Oct/Nov 2015

Microfinance means providing small loans at a low interest rate to poor people. These people are usually unable to obtain loans from commercial banks. It is intended to support development and began in Bangladesh. A World Bank study in 2014 found that microfinance raises consumer expenditure, the value of household assets, the size of the labour force and spending on children’s education.

Oct/Nov 2016

Although central banks encouraged them, some commercial banks in 2015 were still unwilling to lend, particularly to the poor. If more lenders and borrowers had been attracted, commercial banks could have grown and hired extra workers. Higher employment would have made better use of a country’s labour force. In the long term, the size of a country’s labour force is likely to change.

Oct/Nov 2017

In August 2015, China lowered the value of its currency, the yuan. The Chinese Government wanted to raise output, including food output. It had faced a slowdown in economic growth. Yet some other countries had in fact seen output fall. One reason for the drop in economic growth in some countries was difficulties linked to their commercial banks. Some commercial banks were in danger of closing down.

Oct/Nov 2017

What does a central bank do?

Oct/Nov 2018

A central bank operates as a lender of last resort, particularly during financial crises. What is the purpose of this role?

Oct/Nov 2018

Which factor is most likely to persuade a person to make an immediate purchase of an expensive item such as a new car?

Oct/Nov 2018

What does a country’s stock exchange do?

Oct/Nov 2018

Which of the following is not usually a function of a country’s central bank?

Oct/Nov 2019

Angola is an African nation that does not have a stock exchange. By contrast, South Africa has the busiest stock exchange in Africa. Companies in South Africa are also far bigger than companies in Angola, and South African companies borrow more from commercial banks. However, both countries have a low saving rate, which could rise if the rate of interest were increased.

Oct/Nov 2019

Which row presents a characteristic of money and a function of money?

Oct/Nov 2020

Italy is the home of the world’s oldest bank, together with some of the world’s longest-established car producers. In world markets, both industries are encountering several difficulties. Pay for bank staff and car workers is rising. Demand for bank loans and for cars is also changing, partly because population size is changing. It is forecast that the price elasticity of demand (PED) for cars will alter in the future.

Oct/Nov 2020

It was reported in November 2016 that 500 and 1000 rupee banknotes could no longer be used in shops in India. The central bank, an institution that makes extensive use of division of labour, replaced these notes. In India, cash still remains an important form of money for economic transactions. Replacing the banknotes placed pressure on banking staff and tertiary-sector workers, and had an effect on the general price level.

Oct/Nov 2020

What advantage do coins possess that makes them more suitable than paper banknotes for serving as money?

Oct/Nov 2022

What advantage do coins possess that makes them better suited than paper banknotes to serve as money?

Oct/Nov 2022

What benefit do coins have that makes them more suitable than paper banknotes for use as money?

Oct/Nov 2022

When preparing for old age, a person keeps savings as money instead of as goods. Which function of money is being performed in this situation?

Oct/Nov 2023

Which task is not usually carried out by a country’s central bank?

Oct/Nov 2023

Methods of making and taking payments keep changing. Today, people can pay using smartphones, as well as cash, debit cards and credit cards. Which payment method for goods gives sellers no details about their customers?

Oct/Nov 2023

In most countries, which organisation is responsible for regulating the banking system?

Oct/Nov 2023

One role of money is to serve as a measure of value. What does this mean?

Oct/Nov 2023

Saudi Arabia’s economic structure could alter in the future. The country’s central bank is working alongside a larger number of private sector banks. In 2020, the average age of the population was 31.8, only a little higher than the world average of 31.2. During that same year, plans were made public for a city in which cars would neither be needed nor permitted. A change like this could make Saudi Arabia more appealing to younger people who might choose to move there.

Oct/Nov 2023

Which of the following is not a function of money?

Oct/Nov 2024

What is one significant function of a central bank?

Oct/Nov 2024

What does the term money supply mean?

Oct/Nov 2024

What is one role of a commercial bank?

Oct/Nov 2024

What role does money play when it is used to measure the worth of goods and to keep a record of transactions?

Oct/Nov 2025

Which of the following is not a function of the central bank?

Oct/Nov 2025

Why are banknotes used as money?

Oct/Nov 2025

Central banks affect the money supply in their countries. They also oversee commercial banks. Households gain several advantages from these commercial banks. In recent years, commercial banks have adopted new technology. Global online banking rose by 14% between 2019 and 2022. These technology improvements were accompanied by a higher use of division of labour.

Oct/Nov 2025