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

22 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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Lemuel

7 days ago

I agree with you, 'B' seems to be the best definition of monetary policy.

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Janine

11 days ago

I think 'B' is the correct answer. It's about controlling the money supply and interest rates.

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Mozell

1 months 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

1 months 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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Freida

User 1: I think it's B too, it's all about controlling money supply and borrowing costs.

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Mozell

1 months 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

1 months ago

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

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Ammie

1 months 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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