AQA · 7136 / 7135

Central banks and monetary policy

25questions
111marks
5series
2020–2023years

Central banks and monetary policy comes up in 25 questions across the AQA A Level and AS past papers (7136 / 7135), worth 111 marks between them. They run from 2020 to 2023 and appear on A Level Paper 2, A Level Paper 3.

Tariffs run from 1 to 25 marks. The commonest instructions are Multiple choice (16), Using the data (4), Explain how (2). Specification points covered: 4.2.4.1, 4.2.4.2, 4.2.4.3, 4.2.4.4.

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Jun 2023 8 questions

2 marksA Level · Paper 2 · Context 2

Compare bond purchase totals at two dates, expressing the later figure per pound of the earlier.

4.2.4.3Central banks and monetary policyUsing the dataWritten
4 marksA Level · Paper 2 · Context 2

Use chart data to judge whether expanded asset purchases helped meet the UK's policy goals.

4.2.4.3Central banks and monetary policyExplain howWritten
9 marksA Level · Paper 2 · Context 2

Diagram question on why tighter bank lending to households and firms can raise joblessness.

4.2.4.2Commercial and investment banksWith the help of a diagramWritten
25 marksA Level · Paper 2 · Context 2

Assess whether prolonged asset purchase programmes are harmful to Britain's economy.

4.2.4.3Central banks and monetary policyUsing the dataWritten
1 markA Level · Paper 3 · No choice

Match a rate rise to the policy goal it best serves.

4.2.4.3Monetary policyMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

State which terms monetarists treat as fixed in MV=PQ.

4.2.4.3Quantity theory of moneyMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Choose the action that expands the quantity of money.

4.2.4.3Monetary policyMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Choose the moral hazard example created by a central bank safety net.

4.2.4.4Financial system regulationMultiple choiceMultiple choice

Jun 2022 4 questions

1 markA Level · Paper 3 · No choice

Work out the inflation implied by the Fisher exchange equation.

4.2.4.3Quantity theory of moneyMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Identify the condition making systemic banking risk more likely.

4.2.4.4Financial system regulationMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Express a perpetual bond's yield from coupon and traded price.

4.2.4.1Financial assets and bond yieldsMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Add up which items on a bank's balance sheet are liquid.

4.2.4.2Commercial bank balance sheetsMultiple choiceMultiple choice

Nov 2021 6 questions

2 marksA Level · Paper 2 · Context 1

Work out the average yield on Greek government debt across the charted period.

4.2.4.1Financial markets and assetsUsing the dataWritten
4 marksA Level · Paper 2 · Context 2

Use chart data to explain why South Korea's monetary authority might lower borrowing costs again.

4.2.4.3Central banks and monetary policyExplain howWritten
15 marksA Level · Paper 2 · Essay 3

Explain what high street banks do within the wider economy.

4.2.4.2Commercial and investment banksExplainWritten
1 markA Level · Paper 3 · No choice

Deduce the type of institution from a simplified statement of what it owns and owes.

4.2.4.2Commercial and investment banksMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Likely consequence of raising the central bank's policy interest rate.

4.2.4.3Monetary policyMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Which description correctly defines where short-dated borrowing is arranged.

4.2.4.1Financial markets and assetsMultiple choiceMultiple choice

Nov 2020 3 questions

1 markA Level · Paper 3 · No choice

Work out current yield when a bond trades above par.

4.2.4.1Financial assets and bond yieldsMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Choose the situation prompting a rate rise to protect financial stability.

4.2.4.3Monetary policyMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

Define the risk-taking that arises when someone else absorbs the downside of a decision.

4.2.4.4Financial regulation and moral hazardMultiple choiceMultiple choice

Specimen 4 questions

9 marksA Level · Paper 2 · Context 2

Diagram question on why faster expansion might force borrowing costs upward.

4.2.4.3Central banks and monetary policyWith the help of a diagramWritten
25 marksA Level · Paper 2 · Context 2

Evaluate how well interest rate and money policy delivers stability in Britain.

4.2.4.3Central banks and monetary policyUsing the dataWritten
1 markA Level · Paper 3 · No choice

Rank a bank's holdings by how easily each converts to cash.

4.2.4.2Commercial and investment banksMultiple choiceMultiple choice
1 markA Level · Paper 3 · No choice

What happens to a gilt's price and its yield once market interest rates climb.

4.2.4.1Bond prices and yieldsMultiple choiceMultiple choice

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