Money and banking — Paper 1 · IGCSE Economics (9-1) 0987

9 Which combination of influences would increase the level of borrowing by a household? influence 1 influence 2 A becoming pensioners higher rate of inflation B greater wealth lower consumer confidence C higher consumer confidence lower rate of interest D higher rate of interest greater availability of credit

1 marks

Answer: C

This question in 0987/11 May/June 2020

9 It is expected that consumers will use less paper money. What is the most likely reason for this? A Inflation reduces the value of paper money. B More ways of making payments will be available. C Other forms of money are more durable. D Paper money will have less intrinsic value.

1 marks

Answer: B

This question in 0987/11 May/June 2021

28 Which activity is correctly linked to the organisation that provides it? organisation activity A central bank regulate the rate of inflation B central bank set direct tax rates C commercial bank manage the government’s financial accounts D commercial bank safeguard the country’s foreign reserves

1 marks

Answer: A

This question in 0987/11 May/June 2022

15 Which activity is correctly linked to the organisation that provides it? organisation activity A central bank regulate the rate of inflation B central bank set direct tax rates C commercial bank manage the government’s financial accounts D commercial bank safeguard the country’s foreign reserves

1 marks

Answer: A

This question in 0987/12 May/June 2022

9 Which organisations can directly fund the growth of firms? central commercial governments banks banks A no yes no B no yes yes C yes no no D yes no yes

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2022

10 Which advantage do coins have that makes them more suitable than paper banknotes to act as money? A They are more divisible. B They are more durable. C They are more portable. D They are more recognisable.

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2022

13 The central bank of a country decreases interest rates to help the economy out of a recession. How is this decrease in interest rates most likely to affect the levels of saving in and borrowing from the country’s commercial banks? saving borrowing A decreases decreases B decreases increases C increases increases D increases decreases

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2022

11 What would be least likely to act as a store of value during a period of rapid inflation? A cash B gold C property D shares

1 marks

Answer: A

This question in 0987/11 May/June 2023

11 Savers suffer as inflation rises to 4.4%. Which function of money is most involved in this statement? A means of deferred payments B medium of exchange C store of value D unit of account

1 marks

Answer: C

This question in 0987/12 May/June 2023

12 One of the functions of money is to act as a measure of value. What does this mean? A Money allows people to borrow and lend. B Money allows people to save their surplus income. C Money is used to buy goods and services. D Money is used to compare the worth of different goods and services.

1 marks

Answer: D

This question in 0987/12 May/June 2023

11 The ways of making and receiving payments continue to develop. Payments can now be made using smartphones, as well as cash, debit cards and credit cards. Which method of paying for products provides no information to sellers about their customers? A cash B debit cards C credit cards D smartphones

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2023

12 In most countries, which organisation controls the banking system? A central bank B commercial bank C investment bank D World Bank

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2023

23 What must have happened in a country when it experienced an annual rate of inflation of 100%? A The money supply doubled. B The price level halved. C The purchasing power of money halved. D The real value of money doubled.

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2023

15 Which function of money acts as a measure of value? A a medium of exchange B a standard of deferred payment C a store of wealth D a unit of account

1 marks

Answer: D

This question in 0987/12 May/June 2024

10 What is an important role of a central bank? A attempts to achieve price stability B issues credit cards C provides loans to producers D provides savings accounts for consumers

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2024

18 What is the money supply? A the total quantity of foreign currency available within the economy B the total quantity of money available within the economy C the total quantity of money issued by the central bank D the total quantity of money within commercial banks

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2024

10 What is not a form of money? A a banknote B a cheque C a coin D a credit card

1 marks

This question in 0987/11 May/June 2025

11 If interest rates fall, what will be the most likely effect on saving and borrowing? saving borrowing A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: B

This question in 0987/11 May/June 2025

10 What is not a role of the central bank? A to act as the lender of last resort B to hold deposits from the general public C to issue notes and coins D to manage the gold reserves of the country

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2025