A-LevelEconomicsExchange RatesMay/June 2010Paper 1 Q291 Mark
Following a long period of depreciation of the US$, both the US and UK monetary authorities raised their domestic interest rate. What will happen to the value of the exchange rate of the US$ in terms of UK£?
AIt will remain unchanged.
BIt will fall.
CIt will rise.
DThe outcome is uncertain.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep