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Pearson Edexcel International · IGCSE · Economics

Government Economic Policies: Fiscal and Monetary
Practice Questions

40 Pearson Edexcel International IGCSE Economics questions on Government Economic Policies: Fiscal and Monetary, each with instant feedback and a full examiner-style mark scheme.

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Try 2 sample questions on Government Economic Policies: Fiscal and Monetary

Question 1 · 1 mark · Difficulty 1/3

Which of these is a supply-side policy?

  1. Raising interest rates
  2. Increasing the rate of VAT
  3. Cutting the money supply
  4. Improving education and training
Show answer & explanation
✓ Answer: D — Improving education and training
Award 1 mark. Better education and training make workers more productive, raising the economy's capacity, so they are supply-side policies. Raising interest rates and cutting the money supply are monetary policy, and raising VAT is fiscal policy aimed at demand.
Question 2 · 1 mark · Difficulty 1/3

Who usually sets interest rates in a country?

  1. Commercial banks acting together
  2. The finance ministry each year
  3. The central bank
  4. Large firms on the stock market
Show answer & explanation
✓ Answer: C — The central bank
Award 1 mark. In many countries an independent central bank, such as the Bank of England, sets the main interest rate to meet an inflation target. Commercial banks follow it when setting their own rates, while finance ministries run fiscal policy.
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Pearson Edexcel International IGCSE Economics: Government Economic Policies: Fiscal and Monetary FAQ

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Are the Government Economic Policies: Fiscal and Monetary questions aligned to the official Pearson Edexcel International IGCSE Economics syllabus?
Every question is written against the published Pearson Edexcel International IGCSE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real Pearson Edexcel International paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from Pearson Edexcel International.
How is Government Economic Policies: Fiscal and Monetary typically tested on Pearson Edexcel International IGCSE Economics papers?
Government Economic Policies: Fiscal and Monetary appears across multiple question types on real Pearson Edexcel International IGCSE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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