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2.4 Financial markets and monetary policy (A-level only)

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Question 45

All other things being equal, a significant reduction in the central bank policy interest rate in a major economy is most likely to

A

lead to a depreciation of the domestic currency.

B

increase the rate of household saving.

C

reduce aggregate demand.

D

cause a fall in the price of financial assets such as shares.

Markscheme

2.4 Financial markets and monetary policy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.4 Financial markets and monetary policy (A-level only)

176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.

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