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.
(a)[2]
State two functions carried out by a commercial bank.
(b)[4]
Explain two reasons why emigration from a country could rise.
(c)[6]
Analyse the possible causes of an increase in the wages of bank workers.
(d)[8]
Discuss whether demand for cars will or will not become more price-elastic in the future.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Providing loans” …