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How did everyone find 2883 today?

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Reply 40
Avatar for epoxi
epoxi
lodzinski
It would technically alter money supply, but a bit too technical for an AS paper - may not be on the mark scheme.


That's a shame, but from the impression I've got from my teachers is that examiners often use their discretion.
you would hope so, I mean it does answer the question well, it would be pretty harsh to penalise you if it isn't on the mark scheme.
Reply 42
Avatar for funtime em
funtime em
epoxi
Would money supply depend on exchange rates?

(In other words would "Vary Exchange Rates" be a decent answer?)


tbh, im not sure exchange rates wld be a monetary policy (if tht was the question!!) cos u cant really control exchange rates other thn by interest rates can u? if increase interest rates then hot money flow into UK so sterling will be stronger (SPICED - strong pound imports cheap exports dear)... same the other way round, if reduce R of I then money flow out of economy so WPIDEC (weak pound, imports dear, exports cheap)... so the echange rates r controlled by interest rates, meaning not monetary policy in itself... is controlled by monetary but isnt part of the policy.
the only two forms of monetary policy we have been taught are rate of interest (obviously!) and supply of M4 (cash and credit).. how would supply of m4 be controlled by exchange rate?
please dnt think im being nasty btw!!! im just confused, wondered if ive completely missed something?!? if i have then please let me know n explain how??:dontknow:
most of the paper went pretty well but i messed up the last question, did not leave enough time so i wrote very little..just over a page...

for the monetary policy question, i wrote decreasing i.r. and/or increasing the money supply.

with decreasing i.r. i wrote how it would only work with demand deficient u/e and not with others such as structural where training may be needed..

if i've improved by 10 ums i will be happy....
Reply 44
Avatar for rocky_k
rocky_k
funtime em
tbh, im not sure exchange rates wld be a monetary policy (if tht was the question!!) cos u cant really control exchange rates other thn by interest rates can u? if increase interest rates then hot money flow into UK so sterling will be stronger (SPICED - strong pound imports cheap exports dear)... same the other way round, if reduce R of I then money flow out of economy so WPIDEC (weak pound, imports dear, exports cheap)... so the echange rates r controlled by interest rates, meaning not monetary policy in itself... is controlled by monetary but isnt part of the policy.
the only two forms of monetary policy we have been taught are rate of interest (obviously!) and supply of M4 (cash and credit).. how would supply of m4 be controlled by exchange rate?
please dnt think im being nasty btw!!! im just confused, wondered if ive completely missed something?!? if i have then please let me know n explain how??:dontknow:


Basically your wrong lol, the reason for that is simply cos exchange rates was actually given on the mark scheme in a previous year so it must be right
flawed logic if ever I heard it - technically you could use exchange rate as it could cause people abroad to hold fewer pounds,causing a shift in MS in terms of the market for loanable funds - its a ropey point though and would require examiner's discretion.
Reply 46
Avatar for funtime em
funtime em
yeah i asked my teacher too, thats pretty much what he said... he also said tht obv it is part of it cos exch rate will always be affected by r of i so when changing r of i you must always consider the impact of exch rates basically!!
so yep, i was wrong lol.
Reply 47
Avatar for NazB
NazB
1
ahhhh..I did the IR question lol...does any one know how z full marks for 15 marks question could be achieved in the IR dropping frm 4.75?%to 4.5% could done lol???thankx
i thought i messed this paper up and got 118/120...marking must have been off...

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