Interest Rates (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is an interest rate?
What is an interest rate?
The price of borrowing or saving money
What was the peak UK interest rate in the late 1980s?
What was the peak UK interest rate in the late 1980s?
Around 15%
What has the UK base rate been maintained at since the 2008 financial crisis?
What has the UK base rate been maintained at since the 2008 financial crisis?
0.5%
What protection do fixed rate loans offer businesses?
What protection do fixed rate loans offer businesses?
Protection from interest rate rises
A business borrows £20,000 at 5% for one year. What is the interest payment?
A business borrows £20,000 at 5% for one year. What is the interest payment?
£1,000
What is monetary policy?
What is monetary policy?
Using interest rates to control economy
Why do higher interest rates make saving more attractive than investing in machinery?
Why do higher interest rates make saving more attractive than investing in machinery?
Businesses earn higher returns on savings
What are consumer durables?
What are consumer durables?
Goods used over a long period
How do rising interest rates affect exports?
How do rising interest rates affect exports?
Currency appreciates, exports less competitive
What is destocking?
What is destocking?
Reducing inventory levels