Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Country X carries out 60% of its trade with country Y and 40% of its trade with country Z. The starting value of country X’s trade-weighted exchange rate index is 100. What will be its revised trade-weighted exchange rate index if its currency loses 20% of its value against the currency of country Y and gains 10% in value against the currency of country Z?

  • A84
  • B90
  • C92
  • D116

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