A-LevelEconomicsMoney and BankingMay/June 2019Paper 3 Q281 Mark
What may lead to a reduction in bank lending in a country? A an increase in commercial banks' balances with the central bank B an increase in the liquidity ratios operated by the country's commercial banks C an increase in the monetary base of the country D an increase in the volume of liquid assets held by the country's commercial banks
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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