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

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Question 46

A financial institution manages a portfolio consisting of the following four financial assets:

  • Asset 1: A 90-day Treasury bill issued by the government.
  • Asset 2: A 15-year corporate bond issued by a utility company.
  • Asset 3: Commercial paper with a maturity of 45 days.
  • Asset 4: Ordinary shares in a multinational corporation.

Which of the following correctly classifies the primary financial market on which each asset is traded?

A

Money Market: Asset 1 and Asset 2; Capital Market: Asset 3 and Asset 4

B

Money Market: Asset 1 and Asset 3; Capital Market: Asset 2 and Asset 4

C

Money Market: Asset 1 only; Capital Market: Asset 2, Asset 3, and Asset 4

D

Money Market: Asset 1, Asset 2, and Asset 3; Capital Market: Asset 4 only

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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