A-LevelEconomicsInternational Trade and Exchange RatesFeb/Mar 2021Paper 1 Q211 Mark
A country replaces a floating exchange rate system with a managed floating exchange rate system. Which statement is correct?
AIts central bank would have to intervene more frequently in the foreign exchange market.
BIts central bank would need to hold fewer foreign currency reserves.
CThe value of its currency would be determined by its major trading partners.
DThe value of its currency would be determined by the value of the US dollar.
✓ Correct Answer
The correct answer is A. 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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