CIPS Exam A6 Topic 2 Question 60 Discussion

Actual exam question for CIPS's A6 exam

Question #: 60
Topic #: 2

[All A6 Questions]

Which of the following best describes the term 'monetary policy'?

AThe government controlling economic activity by regulating the level of taxation

BThe government controlling economic activity by influencing public service provision

CThe government controlling economic activity by influencing the rate of interest

DThe government controlling economic activity by regulating monopolies.

Show Suggested Answer

Suggested Answer: B

by Sherell at Sep 09, 2024, 06:59 PM

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Domonique

2 months ago

I believe it's C as well, because regulating the rate of interest is a key tool in managing the economy.

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Carma

2 months ago

I'm not sure, but I think it's between A and C.

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Ivory

2 months ago

Haha, I thought monetary policy was the government controlling how much money I have in my pocket. Guess I need to study economics a bit more.

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Lindsey

2 months ago

Haha, I thought monetary policy was the government controlling how much money I have in my pocket. Guess I need to study economics a bit more.

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Bev

2 months ago

C) The government controlling economic activity by influencing the rate of interest

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Tamar

2 months ago

A) The government controlling economic activity by regulating the level of taxation

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3 months ago

C) The government controlling economic activity by influencing the rate of interest. This is the textbook definition of monetary policy.

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Vallie

2 months ago

No, those fall under fiscal policy. Monetary policy is specifically about interest rates.

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Vi

2 months ago

So, it's not about taxes or public services then?

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Olive

2 months ago

I agree, monetary policy is all about controlling the economy through interest rates.

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Alona

2 months ago

I think the answer is C) The government controlling economic activity by influencing the rate of interest.

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