A-LevelEconomicsExchange RatesFeb/Mar 2017Paper 1 Q231 Mark
A country has a fixed exchange rate. What is likely to result in a deterioration in its balance of payments?
Adecrease in interest rates in foreign countries
Bdecrease in the country's interest rates
Cdecrease in the country's National Income
Dan increase in the income of foreign countries
✓ Correct Answer
The correct answer is B. 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...
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