Exchange rates

Q4 Choose which of four aggregate demand and short-run supply sketches fits a large fall in a currency's value.

Q7(c) Analyse two ways Argentina's central bank could stop the peso falling further, using the peso-dollar chart.

Q12(b) Explain what an exchange rate is, using the passage on Japan's weak currency.

Q2 Name what happens when the UAE lowers its pegged dirham rate against the dollar (devaluation and alternatives).

Q10 Evaluate what can drive one currency down against another, as the Pakistani rupee fell 27% versus the dollar in 2022.

Q6 Choose the AD and SRAS diagram showing what a large rise in a currency's value does to prices and output.

Q2(a) Give one explanation for a managed exchange rate being adopted, using Extract D on Ghana's cocoa and chocolate industry.

Q8 Evaluate ways of stopping a currency losing value, after the yen's 35% slide against the dollar.

Q5 Identify which currency trades Japan's central bank would make to prop up a sliding yen against the dollar.

Q7(c) Examine two likely consequences of the rupee weakening against the dollar in the first half of 2022.

Q6 Identify the currency transactions India's central bank would make to strengthen the rupee against the dollar.

Q8 Evaluate the economic effects on a developed country when its currency strengthens, as the dollar did against the euro.

Q1 The US dollar appreciated about 10% against the euro in 2021. Identify the likely cause. (falling speculator confidence in the USA / slower US growth / capital flight to the eurozone / a higher US base rate relative to the eurozone)

Q2 The euro fell from EUR1 = $1.23 to EUR1 = $1.13 during 2021. Identify what could have caused this depreciation.

Q5 Canada's central bank aimed to lower the Canadian dollar against sterling in May 2021. Identify the combination of buying and selling it would use.

Q4(a) Give the meaning of an exchange rate (2-mark definition).

Q4(b) Sterling moved from $1.53 in January 2015 to $1.22 by October 2019: which percentage change is that? (0.31% / 20.26% / 25.41% / 79.74%)

Q1(d) Evaluate a falling pound at both micro and macro level, applying it to restaurants or food delivery firms.

Q7(b) Set out an analysis of two non-interest-rate reasons the Turkish lira weakened, using Figure 3 and Extract A.

Q3(a) Using a chart of the sterling–dollar exchange rate, identify the overall change from 1 January 2018 to 1 January 2019. (appreciation / depreciation / devaluation / revaluation)

Q10 For a country you choose, evaluate what currency depreciation does economically (context: the Turkish lira shedding almost 40% versus the US dollar, January–August 2018).

Q3 State the most probable consequence, other things equal, of the Australian dollar's 7.4% slide versus the US dollar over June 2018 to October 2019.

Q3(b) Under a floating regime, which movement in the Argentine peso would capital flight most probably cause? (appreciation / depreciation / devaluation / revaluation)

Q1(a) Using Extract A, explain the ways Turkey's central bank acts in foreign exchange markets to stop the lira swinging too far either way.

Q1(b) Examine two motives behind Turkey's wish to stop the lira sliding steeply against other currencies.

Q4 Floating sterling moved from £1 = $1.53 in January 2015 down to £1 = $1.26 four years later; name what happened (devalued / revalued / depreciated / appreciated).

Q6(b) Examine what sterling's shift in value has probably done to the UK economy, using Extract A alongside Figure 1.

Q8 How far will a weaker pound shape future UK economic growth? (context: sterling at a 30-year low versus the dollar, off more than 10% after the referendum).

Q6(a) Using Figure 1, find the euro's percentage movement against the pound between early 2009 and early 2015.

Q1(a) Turning to Figure 2, give one reason the Chilean peso's exchange rate shifted across 2013 to 2015.