A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2016 · Q231 Mark

At present, one unit of a country's currency exchanges for US1.20. The country aims to set its exchange rate at US1.00. Which combination of government actions in the foreign exchange market must achieve this aim?

Abuying US currency and buying its own currency

Bbuying US currency and selling its own currency

Cselling US currency and buying its own currency

Dselling US currency and selling its own currency

✓ Correct answer

B: buying US currency and selling its own currency

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.

Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2016 Paper 1 Variant 2, question 23.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content