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CAIE A-Level Economics AS 6.4.1 Exchange Rate Questions

Practise defining an exchange rate as the price of one currency in terms of another with CAIE Economics AS questions and mark schemes.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Define an exchange rate as the price of one currency expressed in terms of another currency.

CAIE A-Level Economics AS 6.4.1 Exchange Rate Questions question 1

[Maximum number: 1]

The following exchange rates were recorded in the foreign exchange market.

£1=€1.208$1=€0.727€1=$1.375\begin{aligned} & £ 1=€ 1.208 \\ & \$ 1=€ 0.727 \\ & € 1=\$ 1.375 \end{aligned}

Within which range of values should £ 1 exchange for $ ?

A

£ 1= less than $ 0.50

B

£1=between $0.50 and $1

C

£ 1= between $ 1 and $ 1.50

D

£ 1= more than $ 1.50

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