Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 22

Which policy pursued by a central bank represents a contractionary monetary policy?

1. Aa reduction in the interest rate at which it will lend to banks
2. Ba reduction in the minimum cash to deposit ratios of banks
3. Cthe purchase of foreign currency to influence the country's exchange rate
4. Dthe sale of government bonds in the open market

As printed in the paper