Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Country X conducts trade with just two countries: Nigeria and Malaysia. 80 % of the nation’s trade is with Nigeria, while 20 % is with Malaysia. The starting value of the trade-weighted exchange rate index is 100. Country X’s currency appreciates by 10 % against the Nigerian Naira. Country X’s currency appreciates by 50 % against the Malaysian Ringgit. What will be the value of country X’s new trade-weighted exchange rate index?

  • A115
  • B118
  • C130
  • D160

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI