Exchange Rate
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13 QuestionsShow answers
  • Question 1
    60 seconds
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    Q.

    The table gives the price of a paperback book as printed on its back cover.

    What is needed to make a clear comparison of the price in the four countries?

    answer choices

    consumer price indices

    exchange rates

    indirect tax rates

    inflation rates

  • Question 2
    30 seconds
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    Q.

    What would contribute to a fall in the value of the UK pound (£)?

    answer choices

    a fall in interest rates in other countries

    a rise in the number of foreign tourists visiting the UK

    the removal of import tariffs by the USA

    the value of UK imports increasing more than the value of UK exports

  • Question 3
    30 seconds
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    Q.

    What is meant by the depreciation of a currency?

    answer choices

    a fall in its external value

    a fall in its internal value

    a rise in its external value

    a rise in its internal value

  • Question 4
    45 seconds
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    Q.

    Two industries in Namibia are fishing and tourism. The value of the currency of Namibia fell in

    2001.

    If there were no other changes, what resulted from the fall?

    answer choices

    Imported goods in Namibian shops became cheaper.

    The price of Namibia’s fish sold in foreign markets became cheaper.

    The volume of Namibia’s exports decreased.

    Tourists were discouraged by higher prices in Namibia.

  • Question 5
    45 seconds
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    Q.

    What is not a main economic government objective?

    answer choices

    a balance of payments deficit

    economic growth

    full employment

    price stability

  • Question 6
    60 seconds
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    Q.

    There was an increase in the value of the United States (US) dollar against the South African

    Rand.

    What is a result of this?

    answer choices

    an increase in the number of exports from the US to South Africa

    an increase in the number of imports to the US from South Africa

    fewer people from the US spend holidays in South Africa

    more people from South Africa spend holidays in the US

  • Question 7
    60 seconds
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    Q.

    Which factor would cause a country’s exchange rate to fall?

    answer choices

    demand for imports increase

    domestic interest rates rise

    domestic savings increase

    more tourists visit the country

  • Question 8
    60 seconds
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    Q.

    What is likely to cause a rise in a country’s foreign exchange rate?

    answer choices

    a fall in its exports of goods and services

    a fall in its imports of goods and services

    a fall in its inflow of income

    a rise in its outflow of transfers

  • Question 9
    60 seconds
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    Q.

    The Mexican currency (the peso) has fallen in value against the US dollar.

    What will be the effect of this on the Mexican economy?

    answer choices

    a decrease in tariffs on imports

    a decrease in the price of exports

    a decrease in the price of imports

    a decrease in the volume of exports

  • Question 10
    60 seconds
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    Q.

    The UK pound depreciates against the US dollar from £1 = $1.80 to £1 = $1.50.

    What does this mean?

    answer choices

    UK imports from the US will cost less.

    US imports from the UK will cost more.

    UK pounds will be dearer in terms of US dollars.

    US dollars will be dearer in terms of UK pounds.

  • Question 11
    60 seconds
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    Q.

    One argument for protectionism is to prevent dumping.

    What is meant by dumping?

    answer choices

    countries paying low wages to their workers to gain price advantage

    countries providing poor working conditions for their employees to keep costs low

    countries selling products abroad at less than the cost of production

    countries selling products abroad that do not meet health and safety standards

  • Question 12
    45 seconds
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    Q.

    The table gives the retail price of a paperback book as printed on its back cover.

    What is needed to make a clear comparison of the price in the four countries?

    answer choices

    exchange rates

    indirect tax rates

    inflation rates

    retail price indices

  • Question 13
    45 seconds
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    Q.

    The value of the Pakistani rupee changes, from 60 rupees to US$1, to 50 rupees to US$1.

    What effect will this have on the price of Pakistani products sold in the US and the price of US

    products sold in Pakistan?

    answer choices

    price of Pakistani products

    sold in the US: increase


    price of US products sold in

    Pakistan: increase

    price of Pakistani products

    sold in the US: increase


    price of US products sold in

    Pakistan: reduce

    price of Pakistani products

    sold in the US: reduce


    price of US products sold in

    Pakistan: increase

    price of Pakistani products

    sold in the US: reduce


    price of US products sold in

    Pakistan: reduce

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