A-LevelEconomicsInternational Trade and Global EconomyMay/June 2022Paper 1 Q231 Mark

A country operates a fixed exchange rate system. What will put pressure on the country to devalue its currency?

Q: What topic does this question test?

This question tests International Trade and Global Economy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Adecrease in the country's inflation rate relative to the inflation rates of other countries

Bdecrease in the tariffs on its products imposed by other countries

Can increase in its current account balance of payments deficit with other countries

Dan increase in the country's interest rate relative to the interest rates of other countries

✓ Correct Answer

The correct answer is C: an increase in its current account balance of payments deficit with other countries

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests International Trade and Global Economy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2022 examination, Paper 1 Variant 2.

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