Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Country X carries out 60% of its trade with country Y and the other 40% with country Z. At the start, the trade weighted exchange rate index of country X is 100. What will its new trade weighted exchange rate index be if its currency rises in value by 20% against the currency of Y and falls by 10% against the currency of Z?

  • A84
  • B92
  • C108
  • D116

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