Edexcel A · Theme 4: A global perspective · 4.4 The financial sector

Edexcel A Economics past paper questions: The financial sector

Every Edexcel A question on The financial sector from 2017 to 2024: 4 data response questions, 3 short answer questions and 2 multiple choice questions. It covers Macroeconomic objectives and policy, Role of the state in the macroeconomy and International economics. Each question links to its paper, mark scheme and examiner report.

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SubtopicsMacroeconomic objectives and policy 2Role of the state in the macroeconomy 1International economics 1

Data response questions on the financial sector

A-level Paper 3, June 2023, Q2(a)5 marks

Case study: Changes in the nature of UK towns and cities

Using the data provided in Extract D, explain one role of financial markets.

Examiner insight

What to cover
Use the Extract D data to explain one role, such as channelling savings into investment, providing liquidity, allowing firms to raise equity or debt finance, or facilitating forward and currency markets.
Watch out
Listing several roles briefly. One role explained with the data earns more than a list.
Question paper p.21Mark scheme p.17Examiner report p.15Open in the tool
A-level Paper 2, June 2019, Q6(e)Discuss15 marks

Case study: The UK economy since the financial crisis

Discuss whether providing substantial government financial support to banks is the best policy response during a financial crisis.

Examiner insight

What to cover
Explain bailouts and recapitalisation restoring bank liquidity and confidence, preventing bank runs, keeping credit flowing to firms and households, and so limiting the fall in investment, AD and employment.
Watch out
Describing the bailouts without comparing them to other policy responses, which the word best requires.
Question paper p.14Mark scheme p.16Examiner report p.38Open in the tool
A-level Paper 2, June 2017, Q6(a)Calculate5 marks

Case study: The Eurozone economy

With reference to Figure 1, calculate the percentage change in the value of the euro in pounds from the start of 2009 to the start of 2015.

Examiner insight

What to cover
Read the euro value in pounds at the start of 2009 and at the start of 2015 from Figure 1. Use change divided by the 2009 value times 100. Show working and state the direction of change.
Watch out
Dividing by the 2015 value instead of the 2009 starting value, or dropping the minus sign on a fall.
Question paper p.15Mark scheme p.10Examiner report p.15Open in the tool
A-level Paper 2, June 2017, Q6(b)8 marks

Case study: The Eurozone economy

With reference to the information provided and your own knowledge, examine two factors which might explain the change in the rate of Eurozone inflation as shown in Figure 2.

Examiner insight

What to cover
Take two factors. Falling world oil prices cut firms' costs and shift SRAS right, lowering the price level. Weak demand, high unemployment and spare capacity hold back demand pull pressure on prices.
Watch out
Confusing a fall in the inflation rate with deflation, which requires a falling price level.
Question paper p.15Mark scheme p.11Examiner report p.16Open in the toolPractise the AD/AS diagram

Short answer questions on the financial sector

Multiple choice questions

  1. A-level Paper 2, June 2024, Q3(b)

    Which one of the following is a role of financial markets? To:

  2. A-level Paper 2, June 2022, Q5(b)

    Which one of the following would be a risk if ‘only minimal checks were made on borrowers’ in this loan scheme?

Question text is quoted from the question papers, © Pearson Edexcel, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.