Exchange Rates — Edexcel Past Paper Questions

Explain one reason why a country might operate a managed exchange rate. Refer to Extract D in your answer.

4.1.8 Exchange Rates

Evaluate the microeconomic and macroeconomic effects of a depreciation of the pound. Refer to restaurants or other food delivery services in your answer.

One of two options in Section A — candidates answered this or the other.

4.1.8 Exchange Rates

Explain how the Turkish central bank intervenes in the currency market to prevent ‘excessive appreciation or depreciation of the Turkish lira’ (Extract A, lines 7–8).

4.1.8 Exchange Rates · 4.4.3 Role of Central Banks

Examine two reasons why the Turkish government may want to avoid a significant fall in the exchange rate of the Turkish lira.

4.1.8 Exchange Rates

With reference to Extract A, explain the role of forward markets in currencies.

4.1.8 Exchange Rates · 4.4.1 Role of Financial Markets

With reference to Extract A and Figure 1, examine the likely impact of the change in the sterling exchange rate on the UK economy.

4.1.8 Exchange Rates

The British pound fell by over 10% to a 30-year low against the US dollar after the UK voted to leave the European Union. To what extent will this depreciation impact on future economic growth in the UK?

One of two options in Section C — candidates answered this or the other.

4.1.8 Exchange Rates · 2.5.1 Causes of Growth

With reference to Figure 1, calculate the percentage change in the value of the euro in pounds from the start of 2009 to the start of 2015.

4.1.8 Exchange Rates

Since mid-2015 the euro has appreciated. Assess the likely impact of an appreciation of the euro on the current account of the balance of payments for Eurozone countries.

4.1.8 Exchange Rates · 4.1.7 Balance of Payments

With reference to Figure 2, explain one likely reason for the change in the Chile peso exchange rate between 2013 and 2015.

4.1.8 Exchange Rates