Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Country X makes 60% of its trade with country Y and the remaining 40% with country Z. Its trade weighted exchange rate index initially stands at 100. If its currency loses 20% of its value against the currency of Y and gains 10% against the currency of Z, what would the new trade weighted exchange rate index value be?

  • A84
  • B90
  • C92
  • D116

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