Central banks influence their countries' money supply. Central banks also regulate commercial banks. Households benefit from these commercial banks in several ways. In recent years, commercial banks have introduced new technology. Global online banking increased by 14% between 2019 and 2022. These advances in technology were combined with a greater use of division of labour.

Mark scheme

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

1. [1] in the public sector / owned by the government
2. [1] operate monetary policy
3. [1] main objective is usually price stability
4. [1] hold the accounts of the government
5. [1] lend to governments and sometimes commercial banks
6. [1] manage foreign exchange rate.
7. [1] usually in the private sector / owned by individuals
8. [1] provide services for consumers
9. [1] main objective is profiting maximization or growth
10. [1] hold the accounts of firms and households
11. [1] lend to households and firms
12. [1] buy and sell foreign currency to firms and households.
13. [1] generally acceptable (1) can be used to buy and sell products / acts as medium of exchange (1)
14. [1] limited in supply (1) minted by the government (1)
15. [1] durable (1) last some time / does not perish / hard to break/ made of metal / acts as store of wealth / store of value (1)
16. [1] portable (1) coins can be carried in pockets / bags (1)
17. [1] homogeneous (1) all coins of the same value are the same (1)
18. [1] divisible (1) coins have different values / acts as medium of exchange (1).
19. [1] enable households to save their money (1) provide deposit / time accounts / deposit boxes (1) earn interest (1)
20. [1] enable households to make and receive payments (1) provide current / sight accounts (1) credit cards (1)
21. [1] lend to households (1) by providing a loan / overdraft / mortgage (1) to e.g. buy a house / a car (1) pay interest (1)
22. [1] give financial advice (1) e.g. on how to manage debt / retirement plans / buy stocks and shares (1)
23. [1] arrange insurance (1) e.g. for house / car (1)
24. [1] Convert foreign currency (1) buying / selling goods and service abroad / travelling abroad (1) charge commission (1).
25. [1] can be trained quickly
26. [1] rise in productivity might be linked to a rise in income
27. [1] can become skilled at a particular task – practice makes perfect
28. [1] can concentrate on what they are most interested in
29. [1] can gain confidence in the task they undertake – less stressful.
30. [1] can be boring
31. [1] occupational mobility is limited
32. [1] may not make full use of their skills
33. [1] may be replaced by machinery
34. [1] work may be disrupted by absence of other staff.