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Economics IGCSEPDF 53
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existing shares to be bought and
sold between investors (secondary
market), providing liquidity for
shareholders.
Indicating Economic
Performance: The general trend of
What is the most important function of a central bank?
A. controlling the money supply
B. issuing bank notes and coins
C. lending to commercial banks
D. lending to the public
Analyse how commercial banks can make a profit. [6]
Discuss whether or not the services provided by a central bank are more
important than those provided by commercial banks. [8]
Define ‘barter’.
Explain two characteristics an item needs to have to be successful as money.
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While B and C are functions, controlling the money supply is the central bank's
most crucial macroeconomic role as it is key to managing inflation and overall economic
stability. D is incorrect as central banks do not lend to the general public.
share prices (e.g., on indices like the
FTSE 100 or Dow Jones) is often
seen as an indicator of business
confidence and the health of the
economy.
2. Structured Question
1. Multiple Choice (Paper 1)
2. Structured Question (Paper 2)
(a)
[2]
(b)
[4]
(c)
(d)
1. Multiple Choice
Answer:A. controllingthemoneysupply
Note:
Solved Answers (Note Form)
Unsolved Past Paper Questions