Cambridge IGCSE Economics practice

Paper 2 structured question: Foreign exchange rates

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

At a glance

Paper

Marks

Topic

Foreign exchange rates

Exam-style question

Try this first

Paper 2Structured Questions3 marks

A country is experiencing a depreciation of its currency.

Description

As the currency depreciates, the prices of exports and imports are affected, influencing consumer behavior and trade balance.

a
Explain how currency depreciation affects export prices and demand.
Your answer
Aim for approximately 3 distinct marking points.
[3]

0 of 1 part answered

Answer every part before opening the mark scheme.

Common mistake

No common mistake is linked to this question yet.

Flashcard 1 of 6

Press Space to flip, arrows to move

Paper 2Structured Questions1 marks

Description

The domestic currency has appreciated against foreign currencies, leading to changes in the prices of imports and exports.

a
State the effect of currency appreciation on import prices.
Your answer
Aim for approximately 1 distinct marking point.
[1]