Quelpr
4 marksMonetary Theory and Policy

CAPE Economics Unit 2 · 2016 · Paper 2 · Question 4(a)(ii)

Question 4 covers money, the money market, and consumer debt.

Outline TWO motives for holding money.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 4(a)(i)State THREE functions of money.[3 marks]
  2. 4(b)Explain TWO ways in which the fluctuating value of money affects an economy.[6 marks]
  3. 4(c)Outline TWO ways in which a surplus of money affects the money market.[4 marks]
  4. 4(d)The widespread use of credit cards has resulted in huge debts as people spend far more than they earn. Discuss TWO potential economic consequences of a large…[8 marks]

More practice: the rest of this paper · more Monetary Theory and Policy questions · all CAPE Economics Unit 2 past papers