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

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Question 24

Context 2: Quantitative easing in the Eurozone

Extract D

Figure 1: Cumulative value of European Central Bank (ECB) asset purchases

DateCumulative value (€ trillion)
December 2015€0.6tn
December 2018€2.6tn
December 2020€3.7tn
December 2022€4.9tn

Figure 2: Selected macroeconomic performance indicators for the Eurozone, period averages

Indicator2012–20152016–20182019–2022
Real GDP annual growth rate (%)0.52.11.2
HICP annual inflation rate (%)0.81.42.1
Unemployment rate (%)11.68.87.4
Current account balance (% of GDP)+1.8+3.1+2.4

Explain how the data in Extract D (Figure 2) show that the growth in quantitative easing (shown in Figure 1) may have been successful in helping the Eurozone achieve its macroeconomic objectives since 2015.

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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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