Economics 9708 · AS & A Level · 6.4

6.4 — practice question

(a)[2]

Compare the exchange rate of the S$ against the US$ from the beginning of 1980 to the beginning of 2010.

(b)[4]

Analyse the possible changes in the demand for and the supply of the S$ that could account for the trends in its exchange rate between 1997 and 2007.

(c)[4]

Explain two ways in which an appreciating exchange rate can help to reduce inflation.

(d)[4]

Using the extract, consider whether Singapore has both a floating and a fixed exchange rate system.

(e)[6]

Discuss whether an economy will benefit from a fall in its exchange rate.

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