Section B

Question 1

What are financial insitutions?

Answer 1

organisations that offer financial services to individuals and businesses

Question 2

Give some examples of financial insitutons.

Answer 2

• banks
• insurance companies
• pawnbrokers
• credit unions

Question 3

What’s the bank of England’s role?

Answer 3

to maintain a healthy level of financial responsibility in the country
they do this by setting interest rates, control the national debt and they lend to banks

Question 4

What is the advantage of the bank of England?

Answer 4

to achieve economic stability

Question 5

What is the disadvantage of the bank of England?

Answer 5

they can raise or lower interest rates which directly affect people who play interest on loans

Question 6

What is the features of a bank?

Answer 6

it handles financial transactions and sores money on behalf of its customers

Question 7

What is the disadvantage of a bank?

Answer 7

savings are only protected up to £85,000 so if the bank goes bankrupt you will lose any money you have over this amount