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Monetary and Fiscal Policy

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Monetary and Fiscal Policy

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 28, 2021 at 5:09 pm #612163
    ilham9089
    • Topics: 211
    • Replies: 165
    • ☆☆☆

    Could you please explain these?

    March 1, 2021 at 8:07 am #612237
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49611
    • ☆☆☆☆☆

    These are actually assumed knowledge from Paper BT (was F1).

    Fiscal policy is the way the government controls the economy through the level of taxes charged.

    Monetary policy is the way the economy is controlled by managing the amount of money in the economy – mainly through raising or lowering interest rates, or by controlling the amount of money banks are allowed to lend.

    March 1, 2021 at 2:27 pm #612343
    ilham9089
    • Topics: 211
    • Replies: 165
    • ☆☆☆

    So I should study the Macro and micro economic chapter from F1? Is there any other assumed knowledge (I’m aware of investment appraisal from F2) that I need to know?

    March 1, 2021 at 4:05 pm #612386
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49611
    • ☆☆☆☆☆

    Not really – those are the main aspects of assumed knowledge.

    (But appreciate that apart from investment appraisal, which is always asked in Paper FM to a higher level and is covered in detail in my free lectures, there will only ever be very few questions in the exam that are revision from Paper F1 and they will only ever be 2 marks questions – it would be very unusual for there to be more than 2 or 3 questions relating to Paper F1 knowledge. But since everyone gets different questions in the same exam I suppose there could be 1 or 2 more questions but it is unlikely).

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