A-LevelEconomicsInternational Trade and FinanceOct/Nov 2016Paper 1 Q231 Mark
An increase or decrease in exchange rates can take place in both a floating and a fixed exchange rate system but different terminology is used for each system. What is the correct terminology? decrease in floating increase in fixed A depreciation appreciation B depreciation revaluation C devaluation appreciation D devaluation revaluation
Adepreciation
appreciation
Bdepreciation
revaluation
Cdevaluation
appreciation
Ddevaluation
revaluation
✓ Correct Answer
The correct answer is B: depreciation revaluation
📋 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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