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

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Question 60

Which one of the following represents the most likely outcome of an increase in central bank interest rates for an economy, all other things being equal?

Household savingBusiness investmentThe exchange rate of the currency
ARiseFallRise
BFallRiseFall
CRiseRiseFall
DFallFallRise
A

Household saving: Rise, Business investment: Fall, The exchange rate of the currency: Rise

B

Household saving: Fall, Business investment: Rise, The exchange rate of the currency: Fall

C

Household saving: Rise, Business investment: Rise, The exchange rate of the currency: Fall

D

Household saving: Fall, Business investment: Fall, The exchange rate of the currency: Rise

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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