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

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Question 8

All other things being equal, a significant reduction in a country's main central bank interest rate is most likely to

A

increase the incentive for households to save.

B

cause a depreciation of the exchange rate.

C

decrease the level of business investment.

D

reduce the rate of 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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