Question:

2 In 2020, the largest Thai commercial bank merged with a smaller commercial Thai bank. It was
expected that the merger would affect the price charged for bank services and the amount that
would be lent. Thai commercial banks operate in the private sector. A growing private sector can
move an economy towards a market economic system.
(a) Identify two influences, other than price, on a customer’s choice of bank. [2]
(b) Explain two reasons why a merger may result in higher prices for consumers. [4]
(c) Analyse how an increase in bank lending can benefit an economy. [6]
(d) Discuss whether or not a market economy allocates resources in the best possible way. [8]

Sample Answers: