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

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Question 58

Which one of the following statements relating to monetary policy in the UK is correct?

Monetary policy

A

is set by the Bank of England's Monetary Policy Committee to meet an inflation target determined by the government.

B

is controlled directly by the Treasury and is voted on annually in the Budget.

C

affects aggregate demand but has no impact on the exchange rate.

D

is used solely to control inflation and has no influence on economic growth.

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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