Advantages And Disadvantages Of Institutions

Question 1

Bank of England ADVs

Answer 1

Protect the financial stability of the UK economy
Lend to banks
Set interest rates

Question 2

Bank Of England DisADV

Answer 2

Do not lend to the general public
Can raise interest rates

Question 3

Banks ADV

Answer 3

Secure place to store money
Pay interest on savings
Variety of services

Question 4

Banks disADV

Answer 4

Savings only protected to 85K if bank goes bankrupt
Owned by shareholders therefore designed to make a profit

Question 5

Building societies ADV

Answer 5

Owned by members
Variety of services
Pay interest on savings
Safe place to store money

Question 6

Building Societies disADV

Answer 6

May lack the businesses drive of commercial banks as they are profit driven
Savings only protected to 85k

Question 7

Credit unions ADV

Answer 7

Owned by members
Variety of services
Offer additional benefits to the community and benefits

Question 8

Credit Unions disADV

Answer 8

May lack the businesses drive of commercial banks as profit driven
Savings only protected to 85k

Question 9

National Savings and Investment ADV

Answer 9

Savings are 100% secure as it is government backed
Various ways to save such as premium bonds