CIPS A6 Exam - Topic 5 Question 92 Discussion

Actual exam question for CIPS's A6 exam

Question #: 92
Topic #: 5

[All A6 Questions]

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)

APeople spend more

BPeople spend less

CThe economy slows down

DThe cost of borrowing goes up

Show Suggested Answer

Suggested Answer: A

by My at Jun 22, 2026, 03:10 AM

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Lavonna

14 days ago

I’m leaning towards C. Lower rates might not help everyone.

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Jules

19 days ago

Definitely A! People will borrow more easily.

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Paris

25 days ago

I think A is the best choice. Lower rates mean more spending.

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Ernestine

30 days ago

Totally agree, A is the way to go!

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Melissia

1 month ago

But what if people are too scared to spend?

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Chantell

1 month ago

Lower rates usually mean more borrowing, so A makes sense.

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Corrinne

2 months ago

I don't know, isn't it risky to just assume that?

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Josphine

2 months ago

A) People spend more, definitely!

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Maddie

2 months ago

I thought decreasing interest rates would mean borrowing costs go down, not up, so D doesn’t make sense to me. I’m leaning towards A.

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Carlota

2 months ago

I feel like the answer could also be A, but I’m a bit confused because I remember something about how it could slow down the economy too.

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Dean

2 months ago

I remember a practice question where lower interest rates led to increased spending, so A seems likely, but I could see how it might not be straightforward.

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Bulah

2 months ago

I think decreasing interest rates usually encourages people to spend more, so I might go with A. But I'm not completely sure.

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