AQA A-level BUSINESS 7132/2 Paper 2 Business 2. June 2021. Question Paper

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AQA A-level BUSINESS 7132/2 Paper 2 Business 2. June 2021. Question Paper Banking on change The UK banking industry is dominated by the ‘Big 5’ banks. These banks have had costly networks of ... physical branches. Recently they have closed many branches, particularly in rural areas. New technology and changes to government rules have opened the market to competition from relatively new entrants called ‘challengers’. Challenger banks target a niche and aim to provide better customer service. Metro Bank, like other challengers, has grown fast, but unfortunately it had to declare losses after a major accounting error in early 2019. Appendix A Examples of types of challenger bank Bank(s) Type of service Monzo, Starling Fully online bank (this type includes 90% of challengers) Tesco, M&S Bank linked to retailer brand Metro Bank City branches open 12 hours a day Appendix B Market share of banks in UK, 2019 (%) Note: The ‘Big 5’ banks are Lloyds, Barclays, RBS/NatWest, HSBC, Santander3 *03* Turn over ► IB/G/Jun21/7132/2 Do not write outside the Appendix C Selected share price and market capitalisation information box 22 February 2019 6 March 2020 Metro Bank share price (pence) 1430.0 128.0 Metro Bank market capitalisation (£) N/A 218.8m Barclays Bank market capitalisation (£) N/A 16 850m Appendix D People using online banking (2009–2019) (Index: base year 2013) Appendix E Analysis of UK banking industry (2019)4 *04* IB/G/Jun21/7132/2 Do not write outside the 0 1 . 1 Using the data in Appendix C, calculate how many shares Metro Bank plc had box issued, as of 6 March 2020. [3 marks] 0 1 . 2 Using the data in Appendix D, calculate the percentage change in the number of people using online banking from 2009 to 2019. [2 marks] 0 1 . 3 Explain one possible reason for the change in the share price of Metro Bank plc shown in Appendix C. [4 marks] 3 2 45 *05* Turn over ► IB/G/Jun21/7132/2 Do not write outside the 0 1 . 4 The closure of branches is seen as a way for the ‘Big 5’ banks to better match supply box with demand. Analyse how this action might affect the profits of these banks. [9 marks] 96 *06* IB/G/Jun21/7132/2 Do not write outside the 0 1 . 5 To what extent does the data show that new entrants are a significant threat to the box ‘Big 5’ banks? [Show More]

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