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

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Question 49

Which one of the following indicates, or is a direct consequence of, an expansionary monetary policy?

A

A reduction in the government budget deficit

B

Depreciation of the exchange rate

C

A rise in the central bank's base interest rate

D

A decrease in the rate of credit creation by commercial banks

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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