A-LevelEconomicsInternational economic issues9708/12 · May/June 2011 · Q261 Mark

A country experiences changes in the value of its exports and imports of goods and its inflow of incomes and transfers. These are shown in the table. Which set of changes is most likely to cause a depreciation in its floating exchange rate?

Aexport value: fall, import value: fall, net inflow of incomes and transfers: fall

Bexport value: fall, import value: rise, net inflow of incomes and transfers: fall

Cexport value: rise, import value: fall, net inflow of incomes and transfers: rise

Dexport value: rise, import value: rise, net inflow of incomes and transfers: rise

✓ Correct answer

B: export value: fall, import value: rise, net inflow of incomes and transfers: fall

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, May/June 2011 Paper 1 Variant 2, question 26.

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