logo

Cambridge IGCSE Economics practice

What type of exchange rate is determined by market forces?

Try the question first, then check the answer and practise the same topic again.

Show answerForeign exchange rates revisionRevise the key idea

At a glance

MCQ

Type

cambridge_mcq

Style

Topic

Foreign exchange rates

Exam-style question

Try this first

What type of exchange rate is determined by market forces?.

  1. A.Fixed exchange rate
  2. B.Floating exchange rate
  3. C.Pegged exchange rate
  4. D.Managed float exchange rate

Answer and explanation

Attempt the question first, then reveal the model answer and explanation.

Common mistake

No common mistake is linked to this question yet.

Related flashcards

Flashcard 1 of 6

Press Space to flip, arrows to move

Related practice questions

Question 1 of 5

Choose an answer, get feedback, then move sideways through the set.

0 of 3 attempted

Paper 2 structured question: Foreign exchange rates

Paper 2Structured Questions1 marks

Description

Exchange Rate Systems

There are two primary types of exchange rate systems: floating and fixed. A floating exchange rate is determined by market forces, while a fixed exchange rate is set by the government.

  1. a

    State the two types of exchange rate systems.

    Aim for approximately 1 distinct marking point.

    [1]