CAIE A-Level Economics 11.2.1 Exchange rate measures

CAIE A-Level Economics 11.2.1 Exchange rate measures
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

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

How this is tested

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

Question 25

[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