Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Country W does 50% of its trade with country X, 30% with country Y and 20% with country Z. The starting value of country W’s trade-weighted exchange rate is 100. Country W’s currency rises by 10% against the currency of country X, falls by 10% against the currency of country Y and stays the same against the currency of country Z. What is the new trade-weighted exchange rate?

  • A100
  • B102
  • C102.5
  • D200

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