What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to money and banking. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 3 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on money and banking, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Saying banks lend out depositors' money one to one, missing the creation of new deposits.
- Confusing the credit multiplier with the income multiplier from 9.2.
- Using the reserve ratio the wrong way round, dividing by 10 rather than by 0.10.
- Treating the theoretical maximum as what actually happens.
- Saying QE is the central bank printing money to give to the government.
- Listing the four functions of money without explaining the double coincidence of wants.
- Confusing liquidity with profitability. The most liquid assets typically earn the least, which is precisely the trade-off a bank manages.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Money and Banking revision notes.