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A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2025 · Q271 Mark

When is a country's exchange rate most likely to fall?

AWhen its current account surplus exceeds that of its trading partners.
BWhen its inflation rate exceeds that of its trading partners.
CWhen its interest rate exceeds that of its trading partners.
DWhen its unemployment rate exceeds that of its trading partners.

✓ Correct answer

B: When its inflation rate exceeds that of its trading partners.

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About this question

Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2025 Paper 1 Variant 2, question 27.

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