The rate of DIRT on savings increased to 33% in the 2013 Budget - Leaving Cert Economics - Question 8 - 2013

1. Interest Rate Levels: Individuals may assess the interest rates being offered by financial institutions as a primary factor influencing their saving decisions. Higher interest rates generally provide better returns on savings.

2. Level of Inflation: Inflation rates play a critical role in saving decisions. If inflation rates are high, the real value of savings may diminish over time, leading individuals to reconsider their saving strategies.

1. Economic Advantage: Reduced Inflation: Increased savings can help in controlling inflation as it may lessen the demand for goods and services, thereby stabilizing prices and enhancing competitiveness.

2. Economic Disadvantage: Reduced Spending within the Economy: High savings may lead to lower consumer spending, which can result in decreased demand for goods and services. This reduction in demand can hinder economic growth.

Decreased Costs: Banks aim to reduce operational costs associated with maintaining numerous branches. By closing less profitable branches, they can enhance overall operational efficiency and focus on more profitable services.

1. Customers of the Branch: Customers may face greater difficulty accessing banking services, leading to increased travel to the nearest branch. This can create inconvenience and increased time costs for customers.

2. Employees of the Branch: Employees may lose their jobs due to branch closures, leading to increased unemployment. This shift can have broader economic implications as displaced workers may struggle to find new employment in a competitive job market.

3. The Local Community: The closure of bank branches can reduce local economic activity. Communities may lose a source of local employment and services, which could hinder the economic resilience of the area.

ECB stands for European Central Bank.

'Money should be durable' means that it must withstand physical wear and tear.

Other Characteristics:

1. Portable: Money should be easy to carry and transfer.
2. Divisible: Money should be easily divided into smaller units to facilitate various transactions.

One economic advantage of the euro for the Irish economy is Lower Interest Rates: With the euro, Ireland benefits from the European Central Bank's monetary policy, which typically results in lower interest rates compared to what would be available if Ireland had its own currency.

One economic disadvantage is Loss of Independence in Monetary Policy: The adoption of the euro means that Ireland cannot implement its own monetary policy tailored to its specific economic conditions, which may hinder its ability to respond effectively to local economic challenges.