Optional25 marks
Case study · Ghana – cocoa and chocolate production
Evaluate the microeconomic and macroeconomic effects of high interest rates in Ghana, or another developing country of your choice.
Specification point 4.4.3 · Theme 4
Role of central banks
The financial sector · A global perspective
Questions tagged to this specification point
5 questions
Essay questions
Long-form evaluation and discussion
Optional25 marks
ContextThe European Central Bank introduced a new round of quantitative easing (QE) in March 2020, purchasing up to €750 billion of assets. The objective of this QE was to reduce the serious risks to the effectiveness of monetary policy resulting from a significant recession. The European Central Bank’s target for inflation remains at ‘below but close to 2%’.
Evaluate the effectiveness of quantitative easing during ‘a significant recession’.
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Data-response questions
Questions built around exam extracts
12 marks
Case study · The UK economy
With reference to Extract B, discuss the use of quantitative easing in preventing deflation.
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15 marks
Case study · The UK economy since the financial crisis
Discuss whether providing substantial government financial support to banks is the best policy response during a financial crisis.
12 marks
Case study · The Eurozone economy
Discuss the likely success of the ECB’s quantitative easing programme in moving Eurozone inflation closer to ‘the central bank’s ceiling of 2%’ (Extract A, line 17).
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Short-answer questions
Focused calculations, explanations and diagrams
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Multiple-choice questions
Quick checks of economic understanding
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