Many people use ATM machines, debit cards and the Internet to conduct their banking.

Mark scheme

Marking points from the official mark scheme (May/June 2012). The mark or mark type is shown in brackets.

1. [3] (a) Any three services × 1 mark each:
2. obtaining cash
3. paying in money/cheques
4. bank statements
5. transferring money between accounts
6. paying bills
7. topping up mobile phone
8. obtaining quotations for loans
9. checking account balances
10. changing PIN numbers
11. 24/7 availablility
12. billing = 0 marks.
13. Any other relevant service.
14. [2] (b) (i) Any two advantages × 1 mark each or one well explained advantage × 2 marks for each section:
15. easier to carry than cash
16. safer than carrying cash
17. may help user to control spending – budget for what the person can afford
18. payment is made immediately
19. can be used when cheques are refused
20. can be used for online shopping.
21. Any other relevant advantage.
22. [2] (b) (ii) Any two advantages × 1 mark each:
23. payment is guaranteed
24. no bad debts
25. instant payment as compared with credit cards
26. helps cash flow
27. less cash is held on premises
28. can be used for e-commerce trading
29. refused if insufficient funds.
30. Any other relevant advantage.
31. [3] (c) Any three services when using Internet banking × 1 mark each:
32. making payments
33. viewing balances and transactions
34. obtaining bank statements
35. paying credit card bills
36. creating/amending/cancelling standing orders
37. managing direct debits
38. transferring money between accounts
39. requesting borrowing facilities
40. access to services 24/7
41. information/advice services
42. international transfers of money
43. purchasing online = 0 marks.
44. Any other relevant service.
45. [4] (d) Any four points × 1 mark each or two well explained points × 2 marks:
46. they provide a detailed record/of every transaction such as direct debits
47. provide running balance after every transaction
48. enable customers to check financial position
49. and to take action if errors/fraud is found
50. enable customers to know their exact financial position and undertake a bank reconciliation
51. provide regular print out of financial information.
52. Any other relevant point.
53. [6] (e) Level 2 (4-6 marks)
54. Has discussed two or more types of advertising in the context of commercial banks and given a reasoned answer for the choices made. (If a candidate has discussed only one type of advertising and given reasons for the choice made, award 4 marks max.)
55. Commercial banks need to advertise their services to keep their customers and also to try and gain new ones. They will need to give detailed information about the services they offer and so they will use informative advertising - often using booklets and leaflets on particular services. There are several commercial banks so customers can choose which ones they want to use. Banks are in competition with one another so they are likely to use competitive advertising such as showing that they are offering a better saving scheme than their competitors.
56. Advertising used by banks may be persuasive in tone as they are trying to persuade people to use their services or to use additional services. Bank are unlikely to use collective advertising - advertising the product – banking – without emphasising a particular brand as they are interested in obtaining as large a market share as possible.
57. Level 1 (1-3 marks)
58. Has commented on one or more types of advertising with little or no reasoning.
59. Banks try to inform and persuade customers to use their services. They provide information. They compete with one another to make as much profit as possible.