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A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2009 · Q281 Mark

Country X trades with only two countries, the USA and Japan. 90% of the country's trade is with the USA and 10% is with Japan. The original value of the trade-weighted exchange rate index is 100. The value of country X's currency against the US$ rises by 10%. The value of country X's currency against the Japanese yen rises by 50%. What will be the value of country X's new trade-weighted exchange rate index?

A114
B115
C130
D160

✓ Correct answer

A: 114

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About this question

Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2009 Paper 1 Variant 2, question 28.

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