Practise applying financial market roles to saving, borrowing, trade, equities and forward markets using country and commodity contexts.
In Thailand 10\% of household income was saved during 2022.
In October 2022 banks in Thailand made loans to the private sector amounting to THB 4809 billion.
With reference to Thailand, explain one role of financial markets.
Knowledge 1, Application 1, Analysis 2
QS9: Interpret, apply and analyse information in written, graphical, tabular and numerical forms.
Knowledge
1 mark for one role e.g.:
- to facilitate saving/
- to make funds available to businesses/governments/ individuals/
- to facilitate the exchange of goods and services/
- to provide forward markets in commodities and currencies/
- to provide a market for equities
- to provide a market for buyers and sellers to exchange financial goods and services (1K)
Application
1 mark for applying to stem e.g.:
- During 2022 in Thailand 10% of income was saved/
- Banks made loans to the private sector of THB 4809 bn in October 2022 (1AP)
Analysis
up to 2 marks for linked expansion, e.g.
- It allows individuals to save up for a later purchase (1AN) such as a deposit for a house (1AN)
- It allows firms to borrow money (1AN) to make investments in new capital goods/ help the business to grow (1AN)
- Consumers can pay for goods and services (1AN) and the funds are transferred to the business / using credit cards where funds are transferred from the credit card company to the business (1AN)
- It allows businesses to make purchases for future deliveries (1AN) at a set price in the future (1AN)
- It enables firms to sell shares (1AN) to raise for finance for expansion (1AN)
(4)