Monetary policy involves the use of policy instruments by a central bank to manage macroeconomic activity. It typically focuses on changes in both:
income tax rates and government expenditure.
interest rates and the money supply.
the budget balance and public sector borrowing.
import tariffs and trade quotas.
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.