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?
✓ Correct answer
A: 114
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill International economic issues and see which topics are most likely to come up next.
Sign up free →