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

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Question 61

An economy is operating at its full-capacity level of output. The central bank decides to introduce measures to restrict the supply of credit to consumers. The most likely reason for this policy action is that

A

household incomes are rising rapidly.

B

domestic asset prices are falling.

C

industrial productivity is growing faster.

D

the exchange rate is appreciating.

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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