Money and banking

In exceptional situations, cigarettes have been used as money. What is the most likely reason why they are not suitable to act 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 pledged to the bank to help secure the loan. Which item would the bank be least likely to accept as security for the loan?

May/June 2015

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

May/June 2016

Under what circumstances will a central bank act as lender of last resort for a commercial bank?

May/June 2016

People made their own goods on their own. Later, they chose to specialise. They then joined together and exchanged their skills with one another, but no money was used. What is not likely to be the outcome for the group?

May/June 2017

Which of the following statements about financial matters is correct?

May/June 2017

Money and banking are strongly connected. Money has several functions, one of which is acting as a standard for deferred payments, and it is used to pay workers, often paid straight into their bank accounts. Workers’ earnings vary according to the industry they are employed in. In some countries, lending by banks in both the private sector and the public sector (state-owned) has risen in recent years.

May/June 2017

In 2015, some German commercial banks cut the interest rates on deposit accounts, which were already extremely low. The German Government expected that this change would persuade more Germans to purchase shares in German firms. If German firms were able to sell more shares or borrow more from commercial banks, their capacity to buy capital goods would rise.

May/June 2017

In 2015, the world experienced numerous shifts in demand alongside progress in technology. New methods of transferring money were being used, and the number of stock exchanges increased. In some countries, governments also increased the school-leaving age, meaning the lowest age at which children are legally permitted to leave school.

May/June 2017

What does a central bank do?

May/June 2018

What service is not offered by a commercial bank?

May/June 2018

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

May/June 2021

The money supply in Bangladesh rose each year from 2010 to 2018. Shifts in the money supply and the foreign exchange rate can influence a government’s macroeconomic policy aims, including full employment. There have been few mergers among commercial banks in Bangladesh, even though its banks are larger than many of its other firms.

May/June 2021

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

May/June 2022

In 2019, Angola experienced a marked rise in the money supply. The National Bank of Angola worried that this would leave inflation above 17% and damage Angola’s producers. Meanwhile, the Angolan government had focused on cutting unemployment, which had dropped from 10% in 2010 to 7% in 2019.

May/June 2022

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

May/June 2023

What would be the most likely factor to encourage saving?

May/June 2023

Savers are hurt as inflation climbs to $4.4\%$. Which function of money is mainly involved in this statement?

May/June 2023

One of the functions of money is to act as a measure of value. What is meant by this?

May/June 2023

Which function of money serves as a measure of value?

May/June 2024

Tajikistan is among Asia’s low-income nations. Its currency, the somoni, has the main features of money. More than one million Tajik citizens work overseas, mainly in Russia. In 2020, the Tajik government feared that the economy could slip into recession, which might reduce tax revenue. Even with this risk, some Tajik firms still purchased new capital equipment.

May/June 2024

Which of the following is not a type of money?

May/June 2025

If interest rates decrease, what is the most likely impact on saving and borrowing?

May/June 2025

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

Oct/Nov 2015

Microfinance means providing poor people with small loans at a low interest rate. These people are usually unable to obtain loans from commercial banks. It is intended to encourage development and originated in Bangladesh. A World Bank study in 2014 showed 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

A central bank can serve as a lender of last resort, particularly during a financial crisis. Why is this function carried out?

Oct/Nov 2018

What is one function of a country’s stock exchange?

Oct/Nov 2018

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

Oct/Nov 2019

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

Oct/Nov 2019

Which row identifies a characteristic of money together with a function of money?

Oct/Nov 2020

Italy is the location of the world’s oldest bank and also some of the world’s oldest car manufacturers. On the international stage, both sectors are encountering several difficulties. Pay for bank employees and car workers is rising. Demand for bank loans and for cars is shifting, partly because population size is changing. It is forecast that the price elasticity of demand (PED) for cars will also alter in the future.

Oct/Nov 2020

In November 2016, it was declared that 500 and 1000 rupee banknotes would no longer be accepted in shops in India. They were then replaced by the central bank, an institution that makes extensive use of division of labour. In India, cash remains an important medium of money in economic transactions. The replacement of banknotes increased pressure on banking employees and other workers in the tertiary sector, and it influenced the general price level.

Oct/Nov 2020

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

Oct/Nov 2022

Which benefit do coins have that means they are more suitable than paper banknotes for serving as money?

Oct/Nov 2022

Ways of making and taking payments keep evolving. Today, people can pay by using smartphones, as well as cash, debit cards and credit cards. Which payment method for buying products gives sellers no information about their customers?

Oct/Nov 2023

In most countries, which organisation is in charge of the banking system?

Oct/Nov 2023

Saudi Arabia’s economic structure could alter in the years ahead. Its central bank is now dealing with a larger number of private-sector banks. In 2020, the population’s average age was 31.8, only a little above the world average of 31.2. In that year, plans were announced for a city in which cars would neither be needed nor permitted. A project like this could make Saudi Arabia more appealing to younger migrants.

Oct/Nov 2023

In Ecuador, people purchase goods using different kinds of money. The Ecuadorian government transfers public sector workers’ wages straight into their bank accounts. In 2019, advances in technology affected the profits of some Ecuadorian firms. In that year, the Ecuadorian government shortened public sector workers’ hours and, in 2020, cut its spending. Economists were unsure how the fall in government spending would affect unemployment.

Oct/Nov 2023

What is one significant function of a central bank?

Oct/Nov 2024

What does the term money supply mean?

Oct/Nov 2024

What does a commercial bank do?

Oct/Nov 2024

Which is not a function of the central bank?

Oct/Nov 2025

What makes banknotes serve as money?

Oct/Nov 2025

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

Oct/Nov 2025