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IB Economics HL 4.6.4 Current account and exchange rate Question Bank

Practise IB Economics HL 4.6.4 by applying current account and exchange rate concepts to exam-style questions.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • identify the relevant model, concept or evidence
  • apply the correct subject framework to the question
  • evaluate the result using clear evidence and subject terminology

4.6.4 (HL)—Current account and exchange rate question 1

[Maximum number: 2]

The following diagram illustrates the domestic market for rice in Country Alpha. This diagram will be used for several of the following questions.

Figure for Question 4.6.4 (HL)—Current account and exchange rate question 1 — IB Economics HL

The following table provides selected data from the balance of payments for Alpha for 2016.

Table 1

Table 1

Outline how Alpha's current account balance for 2016 is likely to affect the exchange rate of its currency.

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