Accounting Multiple Choice Question – 6 July 2025

Which of the following is an aspect of fiscal policy measures by the government?

Select ONE answer:

1. To raise short-term interest rates in the money markets
2. To support the exchange rate of the country’s currency
3. To control growth in the money supply
4. To alter rates of taxation

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > Fiscal policy is concerned with the government’s tax income, expenditure and borrowing (to make up the difference between income and expenditure).

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