Shrewd economy measure by head of exchequer (4)
I believe the answer is:
cute
'shrewd' is the definition.
(I've seen this before)
'economy measure by head of exchequer' is the wordplay.
I cannot quite see how this works, but
'economy' could be 'cut' (both can mean a cost-saving measure) and 'cut' is located in the answer.
'measure' could be 'e' (e is a kind of measure) and 'e' is located in the answer.
This accounts for all the letters.
This explanation may well be incorrect...
Can you help me to learn more?
(Other definitions for cute that I've seen before include "Charming, quaint" , "Daintily pleasing" , "Attractive and quaint (4" , "Appealing -- cunning" , "Sweet, attractive" .)