UK inflation has risen above its target, and several decisions are then taken in the economy.
Which one of the following is a monetary policy decision?
A household moves its savings to a higher-paying account.
A firm delays buying machinery as its loan rate rises.
A commercial bank raises its overdraft interest rate.
The Bank of England raises Bank Rate.
116 exam-style questions on OCR GCSE Economics 3.6 Monetary policy, covering 3.6.1 What is monetary policy, 3.6.2 Monetary policy and macro objectives, and 3.6.3 Effects of monetary policy. Each one has a worked solution and a mark scheme showing where the marks go.