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Cambridge IGCSE Economics practice

What primarily determines the value of a floating exchange rate?

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MCQ

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cambridge_mcq

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Topic

Foreign exchange rates

Exam-style question

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What primarily determines the value of a floating exchange rate?.

  1. A.Government policy
  2. B.Market forces
  3. C.Central bank intervention
  4. D.Fixed rates

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Paper 2 structured question: Foreign exchange rates

Paper 2Structured Questions4 marks

Description

Exchange Rate Systems

This question requires you to analyze the differences between floating and fixed exchange rate systems, including their advantages and disadvantages.

  1. a

    Explain the main differences between floating and fixed exchange rate systems.

    Aim for approximately 4 distinct marking points.

    [4]