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.
(a)[2]
Identify two ways central banks are different from commercial banks.
(b)[4]
Explain two characteristics that coins have which mean they can carry out the functions of money.
(c)[6]
Analyse the services offered to households by commercial banks.
(d)[8]
Discuss whether or not division of labour will help workers.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Central bank: in the public sector / owned by the government” …