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CAIE IGCSE Economics 4.3.1 Definitions of Money Supply and Monetary Policy Questions

Practise Cambridge IGCSE Economics by defining money supply and explaining how monetary-policy tools influence total demand and inflation.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Define money supply as the total quantity of money available within an economy.
  • Explain how monetary policy uses money supply, interest rates or exchange rates to influence total demand and inflation.

CAIE IGCSE Economics 4.3.1 Definitions of Money Supply and Monetary Policy Questions question 1

[Maximum number: 1]

What is the money supply?

A

the total quantity of foreign currency available within the economy

B

the total quantity of money available within the economy

C

the total quantity of money issued by the central bank

D

the total quantity of money within commercial banks

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