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Questions on exchange rate policy


Gender pay gap

80% of UK companies and public sectors organisations pay women less than men.

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Exchange rate policy

Question 1

Using diagrams, explain what would happen to a country's currency, other things being equal, if:

  1. There are more tourists into the country.

  2. Foreign speculators sell the currency.

  3. A country's interest rates rise relative to those of its major trading partners.

Question 2

Assess the possible effects of a sustained fall in the value of a country's currency on a specific exporting firm in that country. You will need at least one diagram to support your answer.


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Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

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Costs and benefits of customs unions.

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Savings ratio

Savings ratio falls to lowest level on record.

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