O-LevelEconomicsInternational trade and globalisation2281/12 · Oct/Nov 2023 · Q291 Mark

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

ADemand for imports increases.

BDomestic interest rates rise.

CDomestic savings increase.

DMore tourists visit the country.

✓ Correct answer

A: Demand for imports increases.

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Topic: International trade and globalisation, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2023 Paper 1 Variant 2, question 29.

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