plumiCentral banks and monetary policy: AQA A‑Level Economics questions
Every AQA A-Level Economics exam question on 4.2.4.3 Central banks and monetary policy, 2020–2025, with its mark scheme and examiner’s report.
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![June 2025 AS Paper 2, question 17: Which one of the following is most likely to contribute to a decision by the Bank of England’s Monetary Policy Committee to increase Bank Rate? [1 mark] A A dec](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71352-jun25-a-17-qp.webp)
![June 2024 Paper 2, question 10: Assess whether an increase in the money supply is always damaging for an economy. [25 marks] Essay 1 In November 2022, the Bank of England warned there was a ri](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71362-jun24-e1-10-qp.webp)
![June 2024 AS Paper 2, question 14: Which one of the following statements regarding UK monetary policy is true? [1 mark] A The central bank considers the government’s fiscal policy when setting Ba](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71352-jun24-a-14-qp.webp)
![June 2023 Paper 3, question 18: Which one of the following is a policy that the Bank of England is most likely to undertake if it wants to increase the money supply? [1 mark] A Increase its pu](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71363-jun23-a-18-qp.webp)
![November 2021 Paper 2, question 14: Assess policies which can be used to reduce cyclical instability in the UK. [25 marks] Essay 3 Commercial banks provide financial services for both individuals](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71362-nov21-e3-14-qp.webp)
All 23 questions on Central banks and monetary policy, as a list
- June 2025, AS Paper 2, Q17 (1 mark): Which one of the following is most likely to contribute to a decision by the Bank of England’s Monetary Policy Committee to increase Bank Rate? [1 mark] A A dec
- June 2024, Paper 2, Q10 (25 marks): Assess whether an increase in the money supply is always damaging for an economy. [25 marks] Essay 1 In November 2022, the Bank of England warned there was a ri
- June 2024, AS Paper 2, Q14 (1 mark): Which one of the following statements regarding UK monetary policy is true? [1 mark] A The central bank considers the government’s fiscal policy when setting Ba
- June 2024, AS Paper 2, Q18 (1 mark): Between October 2022 and July 2023, the value of the US Dollar (US$) in terms of the Swiss Franc (CHF) changed from US$ 1 = CHF 1 to US$ 1 = CHF 0.87. All other
- June 2024, AS Paper 2, Q22 (4 marks): A homeowner has an interest-only mortgage of £225 000. The annual interest rate paid on their mortgage has increased from 2% to 4.3%. Calculate the increase in
- June 2024, AS Paper 2, Q25 (10 marks): Extract B (lines 11–12) states: ‘In response, as inflation rose above the target rate, the Bank of England's Monetary Policy Committee acted by increasing Bank
- June 2024, AS Paper 2, Q26 (25 marks): Extract C (lines 17–18) states: ‘These policies could restrict economic growth in the short term and increase the likelihood of the economy going into recession
- June 2023, Paper 2, Q05 (2 marks): Using the data in Extract D (Figure 3), calculate the value of bonds that had been purchased by November 2020 for every £1 worth of bonds purchased by November
- June 2023, Paper 2, Q06 (4 marks): Explain how the data in Extract D (Figure 4), show that the growth in quantitative easing (shown in Figure 3) may have been successful in helping the UK achieve
- June 2023, Paper 2, Q08 (25 marks): Extract F (lines 18–19) states: ‘Some say that the use of QE is a dangerous addiction and its overuse can lead to problems in the future.’ Using the data in the
- June 2023, Paper 3, Q06 (1 mark): A central bank has raised interest rates as part of monetary policy. Which one of the following policy objectives is this most likely to assist the government i
- June 2023, Paper 3, Q18 (1 mark): Which one of the following is a policy that the Bank of England is most likely to undertake if it wants to increase the money supply? [1 mark] A Increase its pu
- June 2023, AS Paper 2, Q25 (10 marks): Extract B (lines 7–9) states: ‘With this in mind, the government sets the target rate of inflation that the Bank of England’s Monetary Policy Committee (MPC) ha
- June 2023, AS Paper 2, Q26 (25 marks): Extract C (lines 18–19) states: ‘It remains to be seen whether very low interest rates are good for the economy.’ Use the extracts and your knowledge of economi
- June 2022, AS Paper 2, Q09 (1 mark): An economy has a positive output gap and the government decides to increase interest rates. Which one of the following outcomes is most likely to result from th
- June 2022, AS Paper 2, Q12 (1 mark): The Bank of England decides to raise interest rates to bring inflation back to its target rate. This policy is less likely to be effective if at the same time A
- June 2022, AS Paper 2, Q20 (1 mark): A government wanting to use monetary policy to reduce deflation could decrease the A exchange rate. B minimum wage. C money supply. D rate of indirect tax. [1 m
- November 2021, Paper 2, Q06 (4 marks): Explain how the data in Extract D (Figures 3 and 4) show why the South Korean central bank may have been considering a further cut in its base rate of interest.
- November 2021, Paper 2, Q14 (25 marks): Assess policies which can be used to reduce cyclical instability in the UK. [25 marks] Essay 3 Commercial banks provide financial services for both individuals
- November 2021, Paper 3, Q14 (1 mark): The Bank of England’s Monetary Policy Committee increases Bank Rate to reduce the risk of an increase in inflationary pressure in the economy. All other things
- November 2020, Paper 3, Q10 (1 mark): All other things being equal, in which one of the following circumstances is the Bank of England most likely to raise Bank Rate to maintain financial stability?
- November 2020, AS Paper 2, Q16 (1 mark): Output of the UK economy is at the normal capacity level and the Bank of England decides to implement measures to restrict the supply of credit to households. T
- November 2020, AS Paper 2, Q21 (3 marks): Define ‘falling exchange rate’ in Extract B (line 7). [3 marks] Context 1 Total for this context: 50 marks THE UK RETAIL INDUSTRY Extract A: UK retail sales, pe
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