Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIPS Exam L3M1 Topic 2 Question 32 Discussion

Actual exam question for CIPS's L3M1 exam
Question #: 32
Topic #: 2
[All L3M1 Questions]

Monetary policy deals with:

Show Suggested Answer Hide Answer
Suggested Answer: C

Government decisions and actions regarding the level of interest rates and supply of money in the economy.

Fiscal policy relates to taxation and its relationship to government expenditure.

The other two suggested answers: exchange rates and unemployment rates are a factor of other poli-cies; the size of coins and banknotes is beyond the scope of your syllabus and my knowledge. :)


by Sheridan at Mar 19, 2025, 11:22 PM

Limited Time Offer

25%

Off

Get Premium L3M1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Bulah
6 days ago
I believe it's about the size of banknotes and coins, so option B.
upvoted 0 times
...
Tesha
11 days ago
I'm not sure, but I think it's about exchange rates and unemployment.
upvoted 0 times
...
Sharee
14 days ago
Haha, option B? Seriously? That's like saying monetary policy is about the size of the coins in your pocket.
upvoted 0 times
...
Franchesca
14 days ago
I agree with Devorah, option C seems to be the correct answer.
upvoted 0 times
...
Devorah
17 days ago
I think monetary policy deals with government decisions on interest rates and money supply.
upvoted 0 times
...
Alberto
18 days ago
I'm going with C as well. Governments use monetary policy to influence economic conditions through interest rates and money supply.
upvoted 0 times
...
Heike
20 days ago
Definitely C. Monetary policy is all about controlling the money supply and interest rates, not exchange rates or banknotes.
upvoted 0 times
France
5 days ago
I agree, monetary policy is mainly about controlling interest rates and the money supply.
upvoted 0 times
...
...
Ludivina
28 days ago
I think the correct answer is C. Monetary policy deals with government decisions and actions regarding the level of interest rates and supply of money in the economy.
upvoted 0 times
Pamella
14 days ago
So, the government uses monetary policy to influence the economy.
upvoted 0 times
...
Brock
18 days ago
That's correct, it's important for controlling inflation and economic growth.
upvoted 0 times
...
Ellsworth
19 days ago
I agree, monetary policy is all about interest rates and money supply.
upvoted 0 times
...
...

Save Cancel