A-LevelEconomicsInternational Trade and Exchange RatesOct/Nov 2025Paper 1 Q261 Mark
A country with a floating exchange rate has a large deficit on the current account of the balance of payments. What is most likely to decrease as a consequence of this deficit?
Acompetitiveness of the country's products
Blevel of employment in the country
Cprices of exports from the country
Drate of inflation in the country
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of international trade and exchange rates within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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