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IGCSE Economics 0455 · Government and the macroeconomy · 13

0455.4.4.1 — definition of money supply and monetary policy.: past paper questions

28 real questionsasked in 4 of the last 10 exam series2019–2026usually: Discuss, Analyse, Identify, Define, Explain

Real questions on 0455.4.4.1 — definition of money supply and monetary policy.

The newest 20 of 28 written questions. Open one to see it on the real paper.

  1. 0455/22 · May/June 2026 · Q3d[8]

    Discuss whether or not a reduction in bank lending will harm an economy.

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  2. 0455/21 · October/November 2025 · Q1g[6]

    Discuss whether or not an increase in interest rates will harm the Swiss economy.

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  3. 0455/21 · October/November 2025 · Q3c[6]

    Analyse reasons why central banks are important for an economy.

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  4. 0455/22 · October/November 2025 · Q4a[2]

    Identify two policy measures a central bank could use to maintain price stability.

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  5. 0455/12 · October/November 2024 · Q18[1]

    What is the money supply?

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  6. 0455/12 · October/November 2024 · Q23[1]

    Which country is most likely to be following a policy of preventing deflation?

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  7. 0455/23 · October/November 2024 · Q5d[8]

    Discuss whether or not a cut in the interest rate will reduce inflation.

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  8. 0455/12 · October/November 2023 · Q19[1]

    What is likely to happen when the rate of interest increases?

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  9. 0455/21 · October/November 2023 · Q5a[2]

    two monetary policy measures.

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  10. 0455/22 · May/June 2023 · Q2c[6]

    Analyse how an increase in bank lending can benefit an economy.

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  11. 0455/22 · February/March 2023 · Q1g[6]

    Discuss whether or not a central bank should aim for a low inflation rate.

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  12. 0455/12 · October/November 2022 · Q18[1]

    A central bank reduces interest rates. What would not be a consequence of this action?

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  13. 0455/22 · October/November 2022 · Q5d[8]

    whether or not a decrease in the rate of interest will increase a country’s GDP.

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  14. 0455/22 · May/June 2022 · Q2b[4]

    two functions a central bank performs for its government.

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  15. 0455/23 · May/June 2022 · Q5a[2]

    Define monetary policy.

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  16. 0455/22 · February/March 2022 · Q1e[4]

    Analyse the role of the Bermudian Monetary Authority (BMA).

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  17. 0455/21 · May/June 2021 · Q5c[6]

    Analyse how a central bank could avoid deflation.

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  18. 0455/23 · October/November 2020 · Q2c[6]

    Analyse how a cut in the interest rate could reduce poverty.

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  19. 0455/11 · October/November 2019 · Q17[1]

    What is an example of expansionary monetary policy?

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  20. 0455/21 · October/November 2019 · Q5a[2]

    Define monetary policy.

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What examiners said

The strongest answers here analysed how an increase in bank lending could increase economic growth, lower inflation, reduce unemployment and improve the current account balance. A number of candidates wasted time by exploring why an increase in bank lending may harm an economy. This was not required.

— Examiner report, May/June 2023, 0455/22 Q2(c) (Cambridge)

Candidates found this quite a challenging question. There were several ways candidates could have approached the question. They could have examined the benefits of low inflation and contrasted this with the disadvantages of a low inflation rate and/or of a central bank using contractionary monetary policy to achieve it. They could also have examined the disadvantages and advantages of high inflati...

— Examiner report, February/March 2023, 0455/22 Q1(g) (Cambridge)

Question 18 was answered correctly by 39 per cent of the candidates who chose option C. 14 per cent chose option A, 30 per cent chose option B and 17 per cent chose option D. Possibly some candidates did not notice that the question asked what would not be a consequence of a reduction in interest rates. A reduction in interest rates could well cause an increase in borrowing and spending and this c...

— Examiner report, October/November 2022, 0455/12 Q18 (Cambridge)

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0455.4.4.1 — definition of money supply and monetary policy. — IGCSE Economics 0455 past paper questions | AssessPro