The number of people employed in the banking sector in Turkey is increasing. The sector consists of a number of commercial banks, some of which are growing in size, and the Central Bank of the Republic of Turkey.

Mark scheme

Marking points from the official mark scheme (May/June 2014). The mark or mark type is shown in brackets.

1. [4] 1 mark each for two functions identified e.g.:
2. • issuing bank notes
3. • banker to the government
4. • banker to commercial banks
5. • managing the national debt
6. • lender of last resort
7. • implementing monetary policy
8. 1 mark each for two descriptions e.g.:
9. • influences the money supply
10. • operates an account for the government which enables it to receive revenue and make payments
11. • commercial banks' accounts at the central bank enable them to make and receive payments between each other and to withdraw money
12. • issues government securities and pays interest on those securities
13. • will lend to commercial banks that find themselves in difficulty
14. • changes interest rates to control the exchange rate
15. • may adjust exchange rate to influence e.g. the current account position.
16. [4] 1 mark each for two types identified e.g.:
17. • managerial
18. • financial
19. • technical
20. • risk bearing.
21. 1 mark each for explanations of the two types identified linked to banking e.g.
22. • a larger bank may be able to employ specialist workers such as accountants
23. • a larger bank may be able to sell its shares more easily and/or borrow more easily from other banks
24. • a larger bank may be able to use advanced technology and large scale capital equipment
25. • a larger bank may be able to offer a range of financial services so if one is unsuccessful, it will not have a significant impact on profits.
26. [4] 1 mark for high paid workers are likely to spend more in total.
27. 1 mark for high paid workers are likely to spend a lower proportion of their income.
28. 1 mark for high paid workers are likely to spend a higher proportion of their income on luxuries/spend more on luxuries.
29. 1 mark for high paid workers are likely to spend a lower proportion of their income on necessities/less on necessities.
30. Note: accept an answer which is based on low paid workers e.g. low paid workers spend less in total.
31. [8] Up to 6 marks for why they might earn more e.g.:
32. Up to 3 marks for: some bank workers are skilled workers [1] these are in low supply [1] high demand [1].
33. Up to 3 marks for bank workers may be difficult to replace [1] may be very productive [1] and so have inelastic demand [1].
34. Up to 2 marks for: bank workers may need high qualifications/better trained [1] and so have inelastic supply [1].
35. Up to 2 marks for bank workers may be in a professional organisation/trade union [1] and this will give them more bargaining power [1].
36. Up to 6 marks for why they might not earn more e.g.:
37. Up to 4 marks for: some workers in banking are low skilled [1] e.g. cleaners whilst some workers in agriculture are high skilled [1] so supply of some bank workers may be higher than some agricultural workers [1] and demand may be lower [1].
38. Up to 3 marks for: some agricultural workers are very experienced [1] pay tends to rise over time [1] due to promotion [1].
39. Up to 2 marks for: agricultural workers in a rich country may earn more than workers in banking in a poor country [1] earnings vary between countries [1].
40. Up to 2 marks for agricultural workers in some countries may be more likely to be in a union/labour organisation (1) and so may have more bargaining power (1).
41. Note: the question is a general one and so candidates do not have to refer to Turkey but those answers which mention that workers in banking in Turkey may be paid more because the industry is expanding should be credited.
42. Maximum of 4 marks for a list-like approach.