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.
(a)[2]
Identify two reasons why people may leave some of their money in a savings account at a commercial bank.
(b)[4]
Explain the different aims that state-owned commercial banks and privately-owned commercial banks may have.
(c)[6]
Analyse how an increase in the size of commercial banks may benefit their customers.
(d)[8]
Discuss whether living standards are likely to be higher in a mixed economy or a market economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “to receive interest” …