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

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Question 25

Which one of the following is a correct statement regarding monetary policy?

The Monetary Policy Committee of the Bank of England is responsible for setting national tax rates.

Monetary policy measures, such as changing interest rates, can affect both the level of aggregate demand and the exchange rate.

Monetary policy is exclusively used to restrict economic activity and control inflation.

The UK Treasury is solely responsible for adjusting the bank rate on a monthly basis.

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)