What is not a form of money?
- a banknote
- a cheque
- a coin
- a credit card
Show answer and explanation
Answer: D. a credit card
A credit card is a means of borrowing and of accessing money, not money itself.
O Level Economics: Money, banking and finance, questions with answers
Practise 19 real questions on Money, banking and finance from 2021 to 2026. See the answer and explanation as soon as you answer.
19real questions
17multiple choice
9exam sessions
About Money, banking and finance in O Level Economics
Money, banking and finance is one of the 8 main topics in our O Level Economics (Cambridge (CAIE) 2281) question bank, and about 5% of its real questions come from it. Tayyari Karo has 19 real questions on this topic from 2021 to 2026, from Paper 1, Paper 2; 17 are multiple choice and marked instantly, and the rest are structured questions with a model answer. By difficulty: 11 easy, 8 medium.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
Try 6 real questions
These are real past-paper questions. Think of your answer first, then open the explanation.
What is not a role of the central bank?
- to act as the lender of last resort
- to hold deposits from the general public
- to issue notes and coins
- to manage the gold reserves of the country
Show answer and explanation
Answer: B. to hold deposits from the general public
Accepting deposits from the general public is the job of commercial banks, not the central bank.
What would be least likely to act as a store of value during a period of rapid inflation?
- cash
- gold
- property
- shares
Show answer and explanation
Answer: A. cash
Rapid inflation destroys the purchasing power of cash, while real assets tend to hold value.
What would be most likely to encourage saving?
- a rise in the exchange rate
- a rise in the goods and services tax rate
- a rise in the income tax rate
- a rise in the interest rate
Show answer and explanation
Answer: D. a rise in the interest rate
A higher interest rate increases the reward for saving.
Which activity is correctly linked to the organisation that provides it?
- central bank - regulate the rate of inflation
- central bank - set direct tax rates
- commercial bank - manage the government's financial accounts
- commercial bank - safeguard the country's foreign reserves
Show answer and explanation
Answer: A. central bank - regulate the rate of inflation
Central banks conduct monetary policy to control inflation; tax rates are set by government.
Which statement about different income groups is correct?
- High-income groups do not need to borrow money.
- High-income groups save less money than low-income groups.
- Low-income groups find it easier to borrow than high-income groups.
- Low-income groups save a smaller percentage of their income than high-income groups.
Show answer and explanation
Answer: D. Low-income groups save a smaller percentage of their income than high-income groups.
The average propensity to save rises with income, so low-income groups save a smaller proportion of income.
Sessions with Money, banking and finance questions
| Session | Paper 1 | Paper 2 |
|---|---|---|
| May/June 2026 | – | 1 |
| May/June 2025 | 2 | – |
| Oct/Nov 2025 | 2 | – |
| Oct/Nov 2024 | 2 | – |
| May/June 2023 | 3 | – |
| Oct/Nov 2023 | 2 | – |
| May/June 2022 | 1 | – |
| Oct/Nov 2022 | 4 | 1 |
| May/June 2021 | 1 | – |
Common questions
What does the Money, banking and finance topic cover on this page?
19 real O Level Economics (2281) questions on Money, banking and finance from 2021 to 2026, from Paper 1, Paper 2. Each one shows the year, session and paper it came from.
Do I get the answers and explanations?
Yes. Every question shows the correct answer and a short explanation the moment you answer.
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