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Cambridge IGCSE Economics practice

Paper 2 structured question: Monetary policy

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Attempt questionMonetary policy revisionRevise the key idea

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1

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Monetary policy

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Paper 2Structured Questions1 marks

Monetary policy is crucial for economic stability.

Description

Monetary Policy Tools

Monetary policy tools include adjustments to interest rates, changes in the money supply, and foreign exchange rate management.

  1. a

    State one tool of monetary policy.

    Aim for approximately 1 distinct marking point.

    [1]

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Paper 2 structured question: Monetary policy

Paper 2Structured Questions3 marks

Description

Impact of Monetary Policy

Monetary policy can influence inflation, employment, and economic growth through various tools.

  1. a

    Explain how changing the money supply can affect inflation.

    Aim for approximately 3 distinct marking points.

    [3]