A-LevelEconomicsInternational Trade and FinanceFeb/Mar 2020Paper 1 Q301 Mark
A country with a fixed exchange rate experiences a balance of payments surplus. Which policy measure will enable it to maintain its exchange rate?
Adecreasing government borrowing
Bdecreasing government spending
Cdecreasing the interest rate
Ddecreasing the money supply
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of international trade and finance 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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