gcse economics - money - past exam questions

FOUNDATION LEVEL

• Putting your money into a building society is one way of saving money. Name 2 other ways of saving money (2)
• Give 2 reasons why people might save money. Explain your answer. (4)

• If there was an increase in interest rates on loans, what problems might this cause for
a) a hotel business
b) a bank (6)

• How might a rise in interest rates affect the demand for houses and house prices? (5)

HIGHER TIER

• Changes in interest rates may be used to control inflation. Explain how a rise in interest rates might lead to a fall in inflation (8)

• Explain how a rise in interest rates might affect
a) consumers
b) home owners
c) businesses (12)