0455
Money & Banking
Microeconomic Decision Makers · 2 question types
Exam Frequency Analysis
Past paper frequency (2018 to 2024)
This topic accounts for approximately 4% of your exam marks.
new
Rare
New4%
New emphasis in the 2027 syllabus; the functions and characteristics of money and the roles of central and commercial banks are now examined directly. Guidance based on specimen materials.
Money is no longer only cash. The main forms are:
- Cash: notes and coins, the most acceptable and portable form.
- Bank deposits: money held in current accounts, spent directly using debit cards, cheques, direct transfers and mobile payments. Most money in a modern economy is in this form.
- Near : assets that cannot be spent directly but can be quickly turned into cash, such as money in a savings (deposit) account, which must first be withdrawn or transferred into a current account before it can be spent.
The growth of digital and contactless payments means that the share of cash is falling, but the underlying functions of money are unchanged.