33:I[196793,["/_next/static/chunks/2t4jru9lqfj-p.js?dpl=nogit-1791973755","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791973755","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791973755","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791973755","/_next/static/chunks/3psv05tbo5fdm.js?dpl=nogit-1791973755","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791973755","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791973755","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791973755","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791973755","/_next/static/chunks/3uud442tha-9r.js?dpl=nogit-1791973755","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791973755","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791973755","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791973755","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791973755","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791973755","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791973755","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791973755","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791973755","/_next/static/chunks/1covz97-2qrsg.js?dpl=nogit-1791973755","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791973755","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791973755","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791973755","/_next/static/chunks/0iapw94rt37n4.js?dpl=nogit-1791973755","/_next/static/chunks/16jtsbm2g52s0.js?dpl=nogit-1791973755","/_next/static/chunks/05mo4k9k-ry1n.js?dpl=nogit-1791973755","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791973755","/_next/static/chunks/0rdb6pk3ggblv.js?dpl=nogit-1791973755","/_next/static/chunks/2dywbftqxtzvz.js?dpl=nogit-1791973755","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791973755","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791973755","/_next/static/chunks/0qeo40bqomvxa.js?dpl=nogit-1791973755","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791973755","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791973755","/_next/static/chunks/2t7i3r4bhpaol.js?dpl=nogit-1791973755","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791973755","/_next/static/chunks/383_pezm2q72u.js?dpl=nogit-1791973755","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791973755","/_next/static/chunks/0otm7e0gdntf8.js?dpl=nogit-1791973755","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791973755","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791973755","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791973755","/_next/static/chunks/03ud6wr8u46_j.js?dpl=nogit-1791973755","/_next/static/chunks/3f11o876enqgd.js?dpl=nogit-1791973755","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791973755","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791973755","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791973755","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791973755","/_next/static/chunks/1w193fj-lcfgs.js?dpl=nogit-1791973755","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791973755","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791973755","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791973755","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791973755","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791973755","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791973755","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791973755","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791973755","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791973755","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791973755","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791973755","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791973755","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791973755"],"Gingerbread"] 35:I[647935,["/_next/static/chunks/2t4jru9lqfj-p.js?dpl=nogit-1791973755","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791973755","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791973755","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791973755","/_next/static/chunks/3psv05tbo5fdm.js?dpl=nogit-1791973755","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791973755","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791973755","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791973755","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791973755","/_next/static/chunks/3uud442tha-9r.js?dpl=nogit-1791973755","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791973755","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791973755","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791973755","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791973755","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791973755","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791973755","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791973755","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791973755","/_next/static/chunks/1covz97-2qrsg.js?dpl=nogit-1791973755","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791973755","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791973755","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791973755","/_next/static/chunks/0iapw94rt37n4.js?dpl=nogit-1791973755","/_next/static/chunks/16jtsbm2g52s0.js?dpl=nogit-1791973755","/_next/static/chunks/05mo4k9k-ry1n.js?dpl=nogit-1791973755","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791973755","/_next/static/chunks/0rdb6pk3ggblv.js?dpl=nogit-1791973755","/_next/static/chunks/2dywbftqxtzvz.js?dpl=nogit-1791973755","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791973755","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791973755","/_next/static/chunks/0qeo40bqomvxa.js?dpl=nogit-1791973755","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791973755","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791973755","/_next/static/chunks/2t7i3r4bhpaol.js?dpl=nogit-1791973755","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791973755","/_next/static/chunks/383_pezm2q72u.js?dpl=nogit-1791973755","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791973755","/_next/static/chunks/0otm7e0gdntf8.js?dpl=nogit-1791973755","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791973755","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791973755","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791973755","/_next/static/chunks/03ud6wr8u46_j.js?dpl=nogit-1791973755","/_next/static/chunks/3f11o876enqgd.js?dpl=nogit-1791973755","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791973755","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791973755","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791973755","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791973755","/_next/static/chunks/1w193fj-lcfgs.js?dpl=nogit-1791973755","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791973755","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791973755","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791973755","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791973755","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791973755","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791973755","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791973755","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791973755","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791973755","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791973755","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791973755","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791973755","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791973755"],"RecordResourceResume"] 36:I[830476,["/_next/static/chunks/2t4jru9lqfj-p.js?dpl=nogit-1791973755","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791973755","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791973755","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791973755","/_next/static/chunks/3psv05tbo5fdm.js?dpl=nogit-1791973755","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791973755","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791973755","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791973755","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791973755","/_next/static/chunks/3uud442tha-9r.js?dpl=nogit-1791973755","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791973755","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791973755","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791973755","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791973755","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791973755","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791973755","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791973755","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791973755","/_next/static/chunks/1covz97-2qrsg.js?dpl=nogit-1791973755","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791973755","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791973755","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791973755","/_next/static/chunks/0iapw94rt37n4.js?dpl=nogit-1791973755","/_next/static/chunks/16jtsbm2g52s0.js?dpl=nogit-1791973755","/_next/static/chunks/05mo4k9k-ry1n.js?dpl=nogit-1791973755","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791973755","/_next/static/chunks/0rdb6pk3ggblv.js?dpl=nogit-1791973755","/_next/static/chunks/2dywbftqxtzvz.js?dpl=nogit-1791973755","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791973755","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791973755","/_next/static/chunks/0qeo40bqomvxa.js?dpl=nogit-1791973755","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791973755","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791973755","/_next/static/chunks/2t7i3r4bhpaol.js?dpl=nogit-1791973755","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791973755","/_next/static/chunks/383_pezm2q72u.js?dpl=nogit-1791973755","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791973755","/_next/static/chunks/0otm7e0gdntf8.js?dpl=nogit-1791973755","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791973755","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791973755","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791973755","/_next/static/chunks/03ud6wr8u46_j.js?dpl=nogit-1791973755","/_next/static/chunks/3f11o876enqgd.js?dpl=nogit-1791973755","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791973755","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791973755","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791973755","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791973755","/_next/static/chunks/1w193fj-lcfgs.js?dpl=nogit-1791973755","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791973755","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791973755","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791973755","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791973755","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791973755","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791973755","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791973755","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791973755","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791973755","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791973755","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791973755","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791973755","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791973755"],"FlashcardAccessBranch"] 37:I[315438,["/_next/static/chunks/2t4jru9lqfj-p.js?dpl=nogit-1791973755","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791973755","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791973755","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791973755","/_next/static/chunks/3psv05tbo5fdm.js?dpl=nogit-1791973755","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791973755","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791973755","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791973755","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791973755","/_next/static/chunks/3uud442tha-9r.js?dpl=nogit-1791973755","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791973755","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791973755","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791973755","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791973755","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791973755","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791973755","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791973755","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791973755","/_next/static/chunks/1covz97-2qrsg.js?dpl=nogit-1791973755","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791973755","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791973755","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791973755","/_next/static/chunks/0iapw94rt37n4.js?dpl=nogit-1791973755","/_next/static/chunks/16jtsbm2g52s0.js?dpl=nogit-1791973755","/_next/static/chunks/05mo4k9k-ry1n.js?dpl=nogit-1791973755","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791973755","/_next/static/chunks/0rdb6pk3ggblv.js?dpl=nogit-1791973755","/_next/static/chunks/2dywbftqxtzvz.js?dpl=nogit-1791973755","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791973755","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791973755","/_next/static/chunks/0qeo40bqomvxa.js?dpl=nogit-1791973755","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791973755","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791973755","/_next/static/chunks/2t7i3r4bhpaol.js?dpl=nogit-1791973755","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791973755","/_next/static/chunks/383_pezm2q72u.js?dpl=nogit-1791973755","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791973755","/_next/static/chunks/0otm7e0gdntf8.js?dpl=nogit-1791973755","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791973755","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791973755","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791973755","/_next/static/chunks/03ud6wr8u46_j.js?dpl=nogit-1791973755","/_next/static/chunks/3f11o876enqgd.js?dpl=nogit-1791973755","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791973755","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791973755","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791973755","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791973755","/_next/static/chunks/1w193fj-lcfgs.js?dpl=nogit-1791973755","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791973755","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791973755","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791973755","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791973755","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791973755","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791973755","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791973755","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791973755","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791973755","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791973755","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791973755","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791973755","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791973755"],"TopicFlashcardRunner"] 24:[["$","$L33",null,{"feature":"flashcards"}],"$L34",["$","$L35",null,{"href":"/gcse/economics/ocr/monetary-policy/flashcards","label":"3.6 Monetary policy","subjectCode":"gcse_economics__ocr","surface":"flashcards"}],["$","$L36",null,{"runner":["$","div",null,{"className":"min-h-0 flex-1 overflow-hidden bg-background","children":["$","$L37",null,{"decks":[{"id":"c08aee0e-43de-4dc0-b4b7-6bb07b3add1d","title":"Monetary policy Flashcards","topicId":"d7db59f4-f9c8-5533-b66a-5aba9d20087d","topicSlug":"monetary-policy","cards":[{"id":"1efe2594-c9d0-48c4-b437-75341a51ff6a","cardType":"basic","points":1,"front":"Which UK institution sets Bank Rate?","back":"The Bank of England.","mcqOptions":[{"text":"The Bank of England.","correct":true,"explanation":"The Bank of England sets Bank Rate through its Monetary Policy Committee, using it to influence borrowing, saving and wider economic conditions."},{"text":"The HM Treasury.","correct":false,"explanation":"HM Treasury manages government finances and fiscal policy, but it does not set Bank Rate. The Bank of England sets the rate through its Monetary Policy Committee."},{"text":"The Monetary Policy Committee.","correct":false,"explanation":"The Monetary Policy Committee decides Bank Rate, but it is a committee within the Bank of England rather than the institution named in the answer."},{"text":"The Financial Conduct Authority.","correct":false,"explanation":"The Financial Conduct Authority regulates financial markets and firms, but it does not set Bank Rate. That responsibility belongs to the Bank of England."}]},{"id":"8a264ee5-8f35-48d7-9388-fb1763b09d33","cardType":"basic","points":1,"front":"Which UK rate influences commercial banks' mortgage, loan and savings rates?","back":"Bank Rate, also called the base rate.","mcqOptions":[{"text":"Bank Rate, also called the base rate.","correct":true,"explanation":"Bank Rate is the central bank’s policy rate and influences the rates commercial banks charge on borrowing and offer on savings."},{"text":"Mortgage rate, also called the home-loan rate.","correct":false,"explanation":"The mortgage rate applies mainly to mortgage borrowing and is not the general rate influencing loans and savings. Bank Rate, also called the base rate, performs that role."},{"text":"Deposit rate, also called the savings rate.","correct":false,"explanation":"The deposit rate concerns savings accounts but does not broadly determine commercial banks’ mortgage and loan rates. The relevant UK rate is Bank Rate, also called the base rate."},{"text":"Exchange rate, also called the currency rate.","correct":false,"explanation":"The exchange rate measures the value of one currency against another, rather than guiding banks’ borrowing and saving rates. Bank Rate, also called the base rate, influences them."}]},{"id":"edb5752a-aaa5-472c-94d5-203f97cbfa3e","cardType":"cloze","points":null,"front":"Monetary policy uses [ ] and the [ ] to influence the economy.","back":"Monetary policy uses interest rates and the money supply to influence the economy.","mcqOptions":[{"text":"Monetary policy uses interest rates and the money supply to influence the economy.","correct":true,"explanation":"Monetary policy changes interest rates and the money supply to influence aggregate demand, inflation and economic activity."},{"text":"Monetary policy uses interest rates and the tax rates to influence the economy.","correct":false,"explanation":"Tax rates are mainly a fiscal policy instrument, while the money supply is a monetary policy tool. Monetary policy uses interest rates and the money supply."},{"text":"Monetary policy uses government spending and the money supply to influence the economy.","correct":false,"explanation":"Government spending belongs chiefly to fiscal policy, not monetary policy. The correct pair is interest rates and the money supply, which can affect spending and demand."},{"text":"Monetary policy uses exchange rates and the tax rates to influence the economy.","correct":false,"explanation":"Exchange rates can be affected by monetary policy but are not one of its two standard instruments here. The correct instruments are interest rates and the money supply."}]},{"id":"6b838e6f-4389-48eb-8930-a5793a1d4260","cardType":"cloze","points":null,"front":"In the UK, the government sets the [ ], and the Bank of England uses monetary policy to help meet it.","back":"In the UK, the government sets the inflation target, and the Bank of England uses monetary policy to help meet it.","mcqOptions":[{"text":"inflation target","correct":true,"explanation":"The government sets the inflation target, while the Bank of England uses interest rates and other monetary tools to help achieve it."},{"text":"Bank Rate","correct":false,"explanation":"The Bank Rate is set by the Bank of England, not by the government. The government sets the inflation target that monetary policy aims to meet."},{"text":"money supply","correct":false,"explanation":"The money supply is influenced by monetary policy rather than being the government’s stated target. The government sets the inflation target."},{"text":"exchange rate","correct":false,"explanation":"The exchange rate is not the UK government’s formal monetary policy target in this context. The relevant target is the inflation target."}]},{"id":"de5ec3ff-6b09-4a7d-b35e-b0c7741afd43","cardType":"cloze","points":null,"front":"In the UK, the CPI inflation target is [ ].","back":"In the UK, the CPI inflation target is 2%.","mcqOptions":[{"text":"2%","correct":true,"explanation":"The UK government’s CPI inflation target is 2%, and the Bank of England uses monetary policy to try to keep inflation close to that figure."},{"text":"1%","correct":false,"explanation":"1% is below the UK’s official CPI inflation target. The target is 2%, although actual inflation can sometimes be higher or lower."},{"text":"3%","correct":false,"explanation":"3% is above the UK’s official CPI inflation target. The target is 2%, even though temporary economic conditions may push inflation away from it."},{"text":"2.5%","correct":false,"explanation":"2.5% is close to but not equal to the official target. The UK CPI inflation target is exactly 2%."}]},{"id":"ea9f3ab2-d5d7-4b46-8589-011da6393aac","cardType":"basic","points":1,"front":"If Bank Rate rises, what usually happens to the reward for saving?","back":"It increases.","mcqOptions":[{"text":"It increases.","correct":true,"explanation":"A higher Bank Rate generally raises the interest paid on savings, increasing the reward for postponing consumption, although individual account rates may vary."},{"text":"It decreases.","correct":false,"explanation":"A fall in the reward for saving is usually associated with lower Bank Rate. When Bank Rate rises, the reward for saving usually increases."},{"text":"It stays the same.","correct":false,"explanation":"Bank Rate changes normally affect saving returns, so they do not usually leave the reward unchanged. A rise generally makes saving more rewarding."},{"text":"It is abolished.","correct":false,"explanation":"Bank Rate does not remove the reward for saving. Higher rates usually increase interest received on savings, rather than abolishing it."}]},{"id":"943ce523-3b65-465a-b33d-cacb77f2c081","cardType":"basic","points":1,"front":"If Bank Rate rises, what usually happens to the cost of borrowing?","back":"It increases.","mcqOptions":[{"text":"It increases.","correct":true,"explanation":"A higher Bank Rate usually makes loans and mortgages more expensive because commercial banks face higher funding costs and pass these on to borrowers."},{"text":"It decreases.","correct":false,"explanation":"Lower borrowing costs are normally associated with a fall in Bank Rate. When Bank Rate rises, the cost of borrowing usually increases."},{"text":"It stays the same.","correct":false,"explanation":"Borrowing costs usually respond to changes in Bank Rate, so they do not generally remain unchanged. A rise tends to increase the cost of borrowing."},{"text":"It disappears.","correct":false,"explanation":"A rise in Bank Rate does not end borrowing. It normally makes borrowing more expensive, so the cost increases rather than disappears."}]},{"id":"a2ae8e02-e0a9-4b03-a3e4-0e592107a2ab","cardType":"basic","points":1,"front":"If interest rates fall, what usually happens to consumer spending?","back":"It may increase.","mcqOptions":[{"text":"It may increase.","correct":true,"explanation":"Lower interest rates reduce the cost of borrowing and can reduce the incentive to save, so consumer spending may increase, though other factors also matter."},{"text":"It may decrease.","correct":false,"explanation":"Higher interest rates tend to discourage borrowing and encourage saving, but falling rates usually support spending. Consumer spending may therefore increase."},{"text":"It may stay the same.","correct":false,"explanation":"Falling rates can change borrowing costs and saving incentives, so spending need not remain unchanged. The usual effect is that consumer spending may increase."},{"text":"It may stop.","correct":false,"explanation":"Lower interest rates do not normally stop consumer purchases. By making borrowing cheaper and saving less attractive, they may increase consumer spending."}]},{"id":"c37238a4-5455-403f-89c5-b2ba8010c86c","cardType":"basic","points":1,"front":"Bank Rate rises from 3% to 5%. By how many percentage points has it risen?","back":"2 percentage points.","mcqOptions":[{"text":"2 percentage points.","correct":true,"explanation":"A percentage-point change is found by subtraction: 5% minus 3% equals 2 percentage points. This differs from calculating the proportional percentage increase."},{"text":"8 percentage points.","correct":false,"explanation":"Adding the two rates gives 8, but a change is calculated by subtracting the original rate from the new rate: 5% minus 3% equals 2 percentage points."},{"text":"3 percentage points.","correct":false,"explanation":"Using the original rate mistakes the starting level for the change. Subtracting 3% from 5% shows that Bank Rate rose by 2 percentage points."},{"text":"5 percentage points.","correct":false,"explanation":"Using the new rate mistakes the final level for the size of the rise. The increase is 5% minus 3%, which equals 2 percentage points."}]},{"id":"26abd5a9-1493-4961-ab56-171a485dbc9f","cardType":"cloze","points":null,"front":"The [ ] is the chain from a Bank of England rate decision to changes in the wider economy.","back":"The transmission mechanism is the chain from a Bank of England rate decision to changes in the wider economy.","mcqOptions":[{"text":"transmission mechanism","correct":true,"explanation":"The transmission mechanism describes how a Bank of England interest-rate decision passes through borrowing, saving, spending, investment and exchange rates to affect output and inflation."},{"text":"multiplier effect","correct":false,"explanation":"The multiplier effect describes how an initial change in spending can produce a larger change in national income. The relevant chain from monetary policy to the economy is the transmission mechanism."},{"text":"accelerator effect","correct":false,"explanation":"The accelerator effect links changes in demand or output to changes in business investment. The chain through which an interest-rate decision affects the wider economy is the transmission mechanism."},{"text":"price mechanism","correct":false,"explanation":"The price mechanism allocates resources through changes in prices and market signals. The chain connecting a Bank of England rate decision to economic outcomes is the transmission mechanism."}]},{"id":"8419f359-0070-40f3-b119-1ec714f8f51b","cardType":"basic","points":1,"front":"Why might a Bank Rate change not affect households and firms immediately?","back":"Monetary policy works with a time lag.","mcqOptions":[{"text":"Monetary policy works with a time lag.","correct":true,"explanation":"Interest-rate decisions take time to alter loan repayments, saving, spending and investment. This delay before their full effects reach output and inflation is called a time lag."},{"text":"Monetary policy works with an immediate effect.","correct":false,"explanation":"Assuming an instant response ignores fixed contracts, delayed borrowing decisions and gradual changes in spending. Monetary policy instead works with a time lag before its full effects appear."},{"text":"Monetary policy affects only the exchange rate.","correct":false,"explanation":"Monetary policy influences consumption, investment, borrowing and inflation as well as the exchange rate. Its delayed impact on households and firms is described as a time lag."},{"text":"Monetary policy works through direct tax changes.","correct":false,"explanation":"Tax changes are fiscal policy decisions made by the government, not the means by which Bank Rate operates. The delay occurs because monetary policy works with a time lag."}]},{"id":"8799f6c5-f221-45ff-8588-1d81cda32829","cardType":"basic","points":2,"front":"Why can higher interest rates reduce disposable income for households with variable-rate mortgages?","back":"Mortgage repayments rise, leaving less spare income.","mcqOptions":[{"text":"Mortgage repayments rise, leaving less spare income.","correct":true,"explanation":"A higher Bank Rate can increase the interest charged on variable-rate mortgages. Larger monthly repayments then absorb more household income, reducing the amount available for other spending."},{"text":"Mortgage repayments fall, leaving more spare income.","correct":false,"explanation":"This reverses the effect of a rate rise on a variable-rate mortgage. Repayments normally rise as interest charges increase, leaving the household with less spare income."},{"text":"Mortgage repayments stay fixed, leaving spare income unchanged.","correct":false,"explanation":"Variable-rate mortgages can adjust when market interest rates change, unlike mortgages fixed for an agreed period. Higher rates therefore raise repayments and leave less spare income."},{"text":"Mortgage repayments rise, leaving more spare income.","correct":false,"explanation":"Higher repayments do not increase disposable income because they take up a larger share of it. They rise after the rate increase, leaving less spare income available."}]},{"id":"9aa51dfc-5067-40fb-a92c-0e45f7586788","cardType":"cloze","points":null,"front":"In economics, investment means business spending on [ ].","back":"In economics, investment means business spending on capital goods.","mcqOptions":[{"text":"capital goods","correct":true,"explanation":"Economic investment is business expenditure on productive assets such as machinery, equipment and buildings. These capital goods help firms produce goods and services in the future."},{"text":"consumer goods","correct":false,"explanation":"Consumer goods are purchased for final use rather than to expand productive capacity. In economics, business investment specifically means spending on capital goods such as machinery."},{"text":"financial assets","correct":false,"explanation":"Buying shares or other financial assets changes ownership of existing assets but does not directly add productive capacity. Economic investment means business spending on capital goods."},{"text":"raw materials","correct":false,"explanation":"Raw materials are intermediate inputs used up during production, rather than durable productive assets. Investment refers to business spending on capital goods such as machinery and buildings."}]},{"id":"7ccafdbc-6624-4a24-9a76-d5dbc56e1af1","cardType":"basic","points":2,"front":"Why may a firm cancel a machinery purchase when interest rates rise?","back":"Borrowing becomes more expensive, so the project seems less worthwhile.","mcqOptions":[{"text":"Borrowing becomes more expensive, so the project seems less worthwhile.","correct":true,"explanation":"Higher interest rates increase the cost of financing machinery with a loan. The project’s expected return may no longer justify that cost, so the firm may cancel it."},{"text":"Borrowing becomes less expensive, so the project seems more worthwhile.","correct":false,"explanation":"This reverses the effect of an interest-rate rise: loans become more expensive, not cheaper. The higher financing cost makes the machinery project less worthwhile."},{"text":"Borrowing becomes more expensive, so the project seems more worthwhile.","correct":false,"explanation":"A higher borrowing cost reduces rather than increases the project’s expected profitability. Borrowing becomes more expensive, so purchasing the machinery may no longer seem worthwhile."},{"text":"Saving becomes more expensive, so the project seems less worthwhile.","correct":false,"explanation":"Higher rates generally make saving more rewarding rather than more expensive. The cancellation occurs because borrowing becomes more expensive, reducing the machinery project’s expected value."}]},{"id":"d953f151-bc88-49a4-be03-8fa9d19b83de","cardType":"basic","points":1,"front":"What inflation risk can lower interest rates create?","back":"Extra demand can raise inflationary pressure.","mcqOptions":[{"text":"Extra demand can raise inflationary pressure.","correct":true,"explanation":"Lower rates encourage borrowing, consumption and investment, increasing aggregate demand. If demand grows faster than productive capacity, firms can raise prices and inflationary pressure increases."},{"text":"Extra demand can lower inflationary pressure.","correct":false,"explanation":"This reverses the usual demand-side effect. Extra aggregate demand gives firms more scope to increase prices, so it raises rather than lowers inflationary pressure."},{"text":"Extra demand can create deflationary pressure.","correct":false,"explanation":"Deflationary pressure is associated with weak or falling aggregate demand, not additional demand. Lower rates can increase spending, creating greater inflationary pressure instead."},{"text":"Extra demand can reduce the price level.","correct":false,"explanation":"An increase in aggregate demand tends to put upward, not downward, pressure on the general price level. Lower interest rates therefore risk increasing inflationary pressure."}]},{"id":"dbe635e2-3d80-4e30-97a9-0440abe93b0f","cardType":"basic","points":2,"front":"How can higher interest rates reduce inflationary pressure?","back":"

Borrowing and spending fall.
Lower demand makes price rises harder.

","mcqOptions":[{"text":"

Borrowing and spending fall.
Lower demand makes price rises harder.

","correct":true,"explanation":"Higher interest rates discourage borrowing and make saving more attractive, reducing consumption and investment. Weaker aggregate demand then gives firms less scope to increase prices."},{"text":"

Borrowing and spending rise.
Higher demand makes price rises easier.

","correct":false,"explanation":"This describes the typical effect of lower rather than higher interest rates. Higher rates reduce borrowing and spending, and the resulting lower demand makes price rises harder."},{"text":"

Borrowing and spending fall.
Lower demand makes price rises easier.

","correct":false,"explanation":"The first step is right, but the price effect is reversed. When borrowing and spending fall, lower demand makes it harder, not easier, for firms to raise prices."},{"text":"

Borrowing and spending rise.
Higher demand makes price rises harder.

","correct":false,"explanation":"Higher interest rates normally discourage rather than encourage borrowing and spending. This reduces demand, and lower demand makes price rises harder for firms to sustain."}]},{"id":"5e0f6690-256f-4448-a8f6-37997b964e82","cardType":"basic","points":2,"front":"How can higher interest rates slow GDP growth?","back":"

Households and firms spend less.
Firms produce less output.

","mcqOptions":[{"text":"

Households and firms spend less.
Firms produce less output.

","correct":true,"explanation":"Higher interest rates raise borrowing costs and increase the reward for saving, so households and firms reduce spending. Lower demand then gives firms less reason to produce, slowing GDP growth."},{"text":"

Households and firms spend more.
Firms produce more output.

","correct":false,"explanation":"Higher interest rates generally reduce spending, rather than increase it, because borrowing becomes more expensive. Lower spending reduces demand and encourages firms to produce less output, slowing GDP growth."},{"text":"

Households and firms spend less.
Firms produce more output.

","correct":false,"explanation":"Interest-rate rises do not normally make firms produce more directly. They tend to reduce consumption and investment by making borrowing costlier, so weaker demand leads to less output."},{"text":"

Households and firms spend more.
Firms produce less output.

","correct":false,"explanation":"Higher interest rates can reduce spending, but weaker demand normally causes firms to cut production rather than expand it. The output effect is therefore in the opposite direction."}]},{"id":"61dbd062-aadb-4003-a5b5-37afdbc54e61","cardType":"basic","points":2,"front":"How can lower interest rates reduce unemployment?","back":"

Cheaper borrowing raises demand.
Firms hire more workers.

","mcqOptions":[{"text":"

Cheaper borrowing raises demand.
Firms hire more workers.

","correct":true,"explanation":"Lower interest rates reduce the cost of borrowing, encouraging consumption and investment. Higher aggregate demand allows firms to increase production and recruit more workers, reducing unemployment."},{"text":"

Cheaper borrowing lowers demand.
Firms hire more workers.

","correct":false,"explanation":"Cheaper borrowing usually raises demand rather than lowering it, as households and firms can spend or invest more easily. Stronger demand encourages firms to hire more workers."},{"text":"

Cheaper borrowing raises demand.
Firms hire fewer workers.

","correct":false,"explanation":"Lower interest rates can raise demand, but firms normally respond to stronger sales by increasing recruitment, not reducing it. Hiring fewer workers would not explain lower unemployment."},{"text":"

Cheaper borrowing lowers demand.
Firms hire fewer workers.

","correct":false,"explanation":"Lower interest rates are intended to stimulate demand, and the resulting increase in sales gives firms an incentive to recruit. Lower demand would instead risk reducing employment."}]},{"id":"58001f33-4cc3-40b9-9987-8968e029b952","cardType":"basic","points":2,"front":"Why might higher interest rates not directly fix inflation caused by energy or import costs?","back":"They do not directly make those costs fall.","mcqOptions":[{"text":"They do not directly make those costs fall.","correct":true,"explanation":"Energy and imported goods are direct costs for households and firms. Higher interest rates can reduce demand, but they do not directly lower the international prices or production costs causing this inflation."},{"text":"They do not directly make those costs rise.","correct":false,"explanation":"Higher interest rates may reduce demand and eventually slow some price rises, but they do not directly make energy or import costs rise. Those costs are the external source of inflation."},{"text":"They do not directly make those costs disappear.","correct":false,"explanation":"Interest rates affect borrowing, saving and demand, not the direct prices of imported goods or energy. They therefore cannot directly make those costs disappear, although they may weaken demand."},{"text":"They do not directly make those costs increase.","correct":false,"explanation":"Higher interest rates do not directly make energy or import costs increase; those costs depend on world prices, exchange rates and supply conditions. The correct point is that they do not make costs fall."}]},{"id":"22a2ff19-881f-47c4-892c-3caada4bea1e","cardType":"cloze","points":null,"front":"Higher interest rates usually benefit [ ] and hurt [ ].","back":"Higher interest rates usually benefit savers and hurt borrowers.","mcqOptions":[{"text":"Higher interest rates usually benefit savers and hurt borrowers.","correct":true,"explanation":"Savers receive more interest income when interest rates rise, while borrowers face higher repayments or borrowing costs. This transfers purchasing power towards savers and away from borrowers."},{"text":"Higher interest rates usually benefit borrowers and hurt savers.","correct":false,"explanation":"Higher interest rates generally benefit savers because their deposits earn more, but they hurt borrowers through higher repayments. The groups are reversed in this option."},{"text":"Higher interest rates usually benefit borrowers and hurt borrowers.","correct":false,"explanation":"Higher interest rates do not usually benefit both groups: savers gain interest income, whereas borrowers pay more. The option incorrectly treats borrowers as beneficiaries and savers as harmed."},{"text":"Higher interest rates usually benefit savers and hurt savers.","correct":false,"explanation":"Savers generally benefit from higher returns, so identifying them as the harmed group is a reversal. Borrowers are normally hurt because loans and variable-rate repayments become more expensive."}]},{"id":"3b8507f0-66b9-4b11-a6e3-57f7e8a58b7c","cardType":"basic","points":2,"front":"When can the real value of savings fall despite earning interest?","back":"When inflation is higher than the savings interest rate.","mcqOptions":[{"text":"When inflation is higher than the savings interest rate.","correct":true,"explanation":"If inflation exceeds the interest earned, prices rise faster than the savings balance. The money may increase in nominal terms but buy fewer goods and services, so its real value falls."},{"text":"When inflation is lower than the savings interest rate.","correct":false,"explanation":"When the savings interest rate exceeds inflation, the real value of savings normally rises because purchasing power grows faster than prices. The fall occurs when inflation is higher than interest."},{"text":"When inflation is equal to the savings interest rate.","correct":false,"explanation":"Equal inflation and interest rates leave the real value approximately unchanged, ignoring tax and other effects. A real fall requires inflation to exceed the savings interest rate."},{"text":"When the savings balance is falling despite the inflation rate.","correct":false,"explanation":"The nominal amount saved does not need to fall for its real value to decline. If inflation is higher than the interest rate, the balance buys less despite earning interest."}]},{"id":"4bc7b10b-9f77-44d7-9fd3-e581f243d0fc","cardType":"basic","points":2,"front":"Why might low interest rates fail to make firms invest?","back":"Firms may lack confidence that customers will buy.","mcqOptions":[{"text":"Firms may lack confidence that customers will buy.","correct":true,"explanation":"Low interest rates make borrowing cheaper, but firms invest only when they expect sufficient future sales and profits. A lack of confidence means they may postpone investment despite cheap finance."},{"text":"Firms may face higher borrowing costs that customers will buy.","correct":false,"explanation":"Low interest rates usually make borrowing cheaper rather than more expensive. Firms may still avoid investment because they lack confidence that customers will buy enough output."},{"text":"Firms may face higher tax rates that customers will buy.","correct":false,"explanation":"Low interest rates normally reduce the cost of finance, so higher taxation is not the main direct reason investment fails. Weak expectations of future demand are more important."},{"text":"Firms may lack confidence that customers will not buy.","correct":false,"explanation":"Low interest rates do not usually mean customers will buy too much; the concern is often insufficient demand. Firms may lack confidence that sales will justify new investment."}]},{"id":"a93595a3-95c0-4c99-95ba-4d3b161f7a8a","cardType":"cloze","points":null,"front":"A Bank Rate cut is most suitable when [ ] and [ ].","back":"A Bank Rate cut is most suitable when growth is weak and inflation is low.","mcqOptions":[{"text":"A Bank Rate cut is most suitable when growth is weak and inflation is low.","correct":true,"explanation":"A Bank Rate cut stimulates borrowing, spending and investment, so it is most appropriate when the economy needs demand support. Low inflation gives room to stimulate without worsening price pressures."},{"text":"A Bank Rate cut is most suitable when growth is weak and inflation is high.","correct":false,"explanation":"A rate cut can support weak growth, but high inflation is a reason for caution because cheaper borrowing may increase demand and price pressures. The suitable combination includes low inflation."},{"text":"A Bank Rate cut is most suitable when growth is strong and inflation is low.","correct":false,"explanation":"Strong growth usually creates less need for demand stimulus, while low inflation alone does not justify cutting rates. The policy is most suitable when growth is weak as well."},{"text":"A Bank Rate cut is most suitable when growth is strong and inflation is high.","correct":false,"explanation":"Strong growth and high inflation create conditions in which a rate cut could intensify excess demand and price rises. A cut is better suited to weak growth and low inflation."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Paper 1"},"heading":"3.6 Monetary policy","title":"Monetary policy Flashcards","topbar":{"backHref":"/gcse/economics/ocr/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"d7db59f4-f9c8-5533-b66a-5aba9d20087d","walled":"$L39"}],"$L3a","$L3b"]

3.6 Monetary policy Flashcards

3.6 Monetary policy Flashcards