CIPS Exam A6 Topic 1 Question 68 Discussion

Actual exam question for CIPS's A6 exam

Question #: 68
Topic #: 1

[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 Catarina at Dec 04, 2024, 12:48 PM

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Tiffiny

5 days ago

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

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Solange

12 days ago

I agree with Tabetha, because monetary policy involves managing the money supply and interest rates to achieve economic goals.

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Mirta

13 days ago

I agree with Olga. Monetary policy is definitely about the government's influence on interest rates, not taxation or public services.

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C) The government controlling economic activity by influencing the rate of interest seems like the best answer. Monetary policy is all about the central bank's management of the money supply and interest rates.

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Pa

2 days ago

So, it's more about controlling the economy through interest rates than taxation or public service provision.

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Magnolia

3 days ago

Yes, monetary policy involves managing the money supply and interest rates.

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Paul

8 days ago

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

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Tabetha

19 days ago

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

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