O-LevelCommerceBanking7100/21 · Oct/Nov 2025 · Q417 Marks

Jonah is a student and has opened a deposit account and a current account at a local bank.

(a)State two features of a deposit account.[2]
(b)(i)wanting to see details of his bank account.[2]
(b)(ii)withdrawing money when the bank is closed.[2]
(c)Do you agree that the best way for Jonah to communicate with his bank is by mobile app? Give reasons for your answer.[3]
(d)Jonah wants to buy a new laptop from a retail store. He is considering two options to buy the laptop: Option 1: store card Option 2: bank loan. Discuss each of these two options. Which option do you recommend? Give reasons for your answer.[8]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

[2] Interest on money deposited
[2] Acts as a savings account/for saving money/save money / security of savings
[2] Minimum balance requirement
[2] Instant access to money
[2] Notice of withdrawal maybe required / may limit the amount withdrawn / money can be withdrawn at anytime
[2] A passbook may be provided
[2] A withdrawal slip needed to take out money
[1] Bank statement
[1] showing transactions / credit/debit balances / how much owing
[1] Log in to your bank's website or mobile app or bank app or internet banking
[1] to download statements showing transactions / credit/debit balances
[1] Using an ATM
[1] to obtain a min-statement showing transactions / credit/debit balances
[1] At ATM / cashback provider
[1] with a credit / debit card / PIN / 24/7/anytime
[1] Use debit card / mobile wallet
[1] at shops such as supermarkets
[1] Use telephone/internet/online banking/banking app/mobile app
[1] to transfer money / 24/7/at any time
[3] Yes – easy access / anywhere (1) 24/7/anytime (1) fast with one click (1) convenient (1) in the comfort of own home (1) because it can save time (1) save money (1) instead of going into / queuing in a bank (1) especially useful for customers without access to a local bank (1) safer than carrying cash to a bank (1) can be used when bank is closed (1) you can check account balances (1) receive alerts (1) make payments / transfer money (1) no need for internet connection (1) safer than internet banking (1) and normally free to use (1) can have chatbot support (1)
[3] No - network access might be unavailable (1) e.g. in rural areas (1) the bank's system might be down so no access is possible (1) e.g. app glitches / server downtime (1) cause delays /block account (1) security risk (1) as hackers may get into the bank's system / cyberattack / scammed (1) and steal a customer's money / data could be taken (1) loss of phone gives access to bank details (1) will not be able to obtain all bank services e.g. mortgage (1) limited personal interaction / immediate feedback (1) may not provide the advice needed (1) some banks charge a fee for mobile banking (1)
[8] Level 3 (7-8 marks): The candidate is able to offer a thorough evaluation, with recommendation, of whether Jonah should be using a store card or a loan to pay for the laptop.
[8] Level 2 (5-6 marks): Candidate offers a satisfactory analysis of the advantages and/or disadvantages of using a store card and/or loan to pay for the laptop without recommendation
[8] Level 1 (1-4 marks): Candidate demonstrates some knowledge and understanding, with application to Jonah of using a store card or a loan to pay for the laptop.
[0] Level 0 (0 marks): No creditable response
A store card is provided by large-scale retailers through which credit is given. It can generally only be used to make purchases within a named store. It allows a customer to buy items on credit and pay the balance later with interest charged if you do not pay in full each month. Retailers offer store cards to encourage customer loyalty and often provide incentives such as a discount, exclusive access to sales events, free shipping or points, loyalty rewards programme.
A bank loan is a fixed amount of bank borrowing over a set term with regular repayments. The borrower repays the amount borrowed plus an interest rate, which is fixed.
Store card: Often receive a discount on the laptop. He may earn reward points which can be used to obtain free gifts / special offers / free delivery. Provides interest-free credit if paid off each month so helping Jonah's cash flow and helping Jonah to spread payments. However, high interest rates can make it more difficult to pay off, if not paid on time. However, temptation to overspend so can lead to debt. However, can only use the store card in the named store unlike a credit card.
Bank loan: Jonah can pay back over a long period of time so that repayments can be spread. Interest rate is fixed and usually lower than interest payments on a store card. However, interest has to be added so it could be more costly than a store card. However, risk of having his laptop repossessed if loan is not paid back. However, a loan can encourage Jonah to buy a more expensive laptop that he can need / afford.
Evaluation: A store card will offer a discount / reward so is more attractive but an inexperienced borrower, like Jonah, may not repay the debt in time so it will end up costing him a lot more when interest is added. If the laptop that he wants to buy is very expensive, it is recommended that he obtains a bank loan so that he can spread the repayments. Ultimately, whatever he decides, the most important thing for Jonah is to either repay in full on a store card to avoid interest or to make sure that he can afford the monthly loan repayments.