CIPS Exam A6 Topic 5 Question 67 Discussion

Actual exam question for CIPS's A6 exam

Question #: 67
Topic #: 5

[All A6 Questions]

Which of the following best defines the term 'monetary policy'? (2 marks)

AThe control of taxation

BThe control over the amount of money in circulation and the cost of borrowing

CThe control of numbers of people unemployed compared to those employed

DThe control of wealth distribution

Show Suggested Answer

Suggested Answer: B

by Serita at Nov 14, 2024, 10:31 AM

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Kristeen

8 days ago

Ha! 'C' is clearly the answer. Monetary policy is all about balancing employment numbers, isn't it? The Fed loves to play with those unemployment stats.

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Mozell

19 days ago

Hmm, I think 'D' is the right answer. Wealth distribution is a critical aspect of monetary policy, don't you think? Or maybe I've been studying too much Marx lately...

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Gail

22 days ago

Definitely 'B' - the control over the money supply and borrowing costs is the core of monetary policy. It's the textbook definition.

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Mozell

22 days ago

I'm not sure, but I think it's either A or B. Can someone explain why it's not A?

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Valda

24 days ago

I agree with Ammie. Monetary policy is all about controlling the money supply and interest rates.

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Ammie

25 days ago

I think the answer is B) The control over the amount of money in circulation and the cost of borrowing.

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