In 2020, Thailand’s largest commercial bank joined with a smaller Thai commercial bank. It was anticipated that this merger would change the price charged for bank services and the sum that would be lent. Thai commercial banks are part of the private sector. An expanding private sector can move an economy towards a market economic system.
(a)[2]
Identify two factors, apart from price, that influence 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 a rise in bank lending can benefit an economy.
(d)[8]
Discuss whether a market economy allocates resources in the most effective way, or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Range of services offered” …