CIPS Exam A6 Topic 4 Question 70 Discussion

Actual exam question for CIPS's A6 exam

Question #: 70
Topic #: 4

[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 Jules at Jan 26, 2025, 06:41 AM

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Yuette

3 days ago

I'm with the others on this one. Monetary policy is all about the central bank's management of interest rates. Easy peasy!

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Cyndy

8 days ago

Haha, D) regulating monopolies? That's more like antitrust policy. These exam questions can be tricky, but C is the obvious choice here.

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Tamekia

12 days ago

Yeah, I agree with Wilford. Monetary policy is definitely about interest rates, not taxes or public services. This one's pretty straightforward.

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C) The government controlling economic activity by influencing the rate of interest is clearly the correct answer here. Monetary policy is all about the central bank manipulating interest rates to achieve economic goals.

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Melynda

10 days ago

Yes, monetary policy is all about the central bank manipulating interest rates to achieve economic goals.

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Fallon

11 days ago

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

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Kirk

25 days ago

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

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Adelle

26 days ago

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

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Glory

30 days ago

I agree with Lashon, because monetary policy involves controlling interest rates.

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Lashon

1 months ago

I think the answer is C.

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