Practice Impact of exchange rate changes - 6.1 | Chapter: International Economics | IB MYP Grade 10: Individuals & Societies - Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is an exchange rate?

πŸ’‘ Hint: Think about how we trade money internationally.

Question 2

Easy

What happens when a currency appreciates?

πŸ’‘ Hint: Consider what this means for buying imports.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What type of exchange rate is determined by market forces?

  • Fixed
  • Floating
  • Both

πŸ’‘ Hint: Remember the definition of both exchange rates.

Question 2

True or False: A strong currency always benefits a country's exports.

  • True
  • False

πŸ’‘ Hint: Consider how pricing affects demand.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A country has a fixed exchange rate system but sees a consistent deficit in its current account. Discuss the potential implications of this scenario.

πŸ’‘ Hint: Think about long-term effects on foreign reserves.

Question 2

Analyze how a sudden depreciation of a national currency affects local industries that depend on imported raw materials.

πŸ’‘ Hint: Consider the ripple effects on final product pricing.

Challenge and get performance evaluation