O-LevelEconomicsInternational trade and globalisation2281/11 · May/June 2012 · Q401 Mark

Which factor would cause a country’s exchange rate to fall?

Ademand for imports increase

Bdomestic interest rates rise

Cdomestic savings increase

Dmore tourists visit the country

✓ Correct answer

A: demand for imports increase

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Topic: International trade and globalisation, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2012 Paper 1 Variant 1, question 40.

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