A central bank decides to implement a contractionary monetary policy to combat rising inflationary pressures. Which of the following measures represents this policy?
Increasing the rate of corporation tax on company profits
Selling government bonds to financial institutions to reduce liquidity in the banking system
Decreasing the statutory reserve requirements for commercial banks
Lowering the main policy interest rate by 50 basis points
27 exam-style questions on OCR A Level Economics Monetary policy. Each one has a worked solution and a mark scheme showing where the marks go.