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Cambridge IGCSE Economics

4.3Monetary policy

Monetary policy in Cambridge IGCSE Economics: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic22 practice questions1 lesson

Learning objectives

What the syllabus expects you to be able to do.

  1. 4.3.1Define the money supply and monetary policy.
  2. 4.3.2Describe monetary policy measures: changes in the interest rate, the money supply and the foreign exchange rate.
  3. 4.3.3Explain how monetary policy may help a government achieve its macroeconomic aims.

Lessons

  • Monetary policy: interest rates, money supply and the exchange rate

    30 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Monetary policy: sample question

1 mark

How is a rise in interest rates most likely to affect households?

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Turn Monetary policy into a strength.

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