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2.5 The role of money and financial markets

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Question 2

High inflation continues for several years, so households spend money quickly after receiving it. Which chain best explains this behaviour?

[1]
A

Money gains purchasing power, becomes a better store of value and spending is delayed

B

Money loses purchasing power, becomes a stronger unit of account and saving rises

C

Money loses purchasing power, becomes a weaker store of value and spending is brought forward

D

Prices fall, money becomes a weaker medium of exchange and spending is brought forward

Markscheme

2.5 The role of money and financial markets Questions

  1. GCSE
  2. /Economics
  3. /2.5 The role of money and financial markets

27 exam-style questions on AQA GCSE Economics 2.5 The role of money and financial markets, covering 2.5.1a Functions of money, 2.5.1b Definition of money, 2.5.2a Agents in the financial sector, 2.5.2b The role of the Bank of England, and 2.5.2c The role of high street banks. Each one has a worked solution and a mark scheme showing where the marks go.

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