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CAIE A-Level Economics 11.2.1 Exchange rate measures

Practise measuring nominal, real and trade-weighted exchange rates from definitions, currency tables and weighted index data.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • calculate percentage appreciation or depreciation from currency-per-dollar tables
  • interpret a trade-weighted index using trading partner weights and currency changes

11.2.1—Exchange rate measures question 1

[Maximum number: 1]

What is a trade-weighted exchange rate?

A

the price of one currency against a basket of other currencies

B

the price of one currency in terms of another

C

the price of one currency in terms of its real purchasing power

D

the price of one currency being determined by state intervention

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