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.
(a)[2]
State two functions carried out by a commercial bank.
(b)[4]
Explain two reasons why emigration from a country may rise.
(c)[6]
Analyse the possible causes behind an increase in bank workers’ wages.
(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” …