Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

The exchange rate for the South African rand and the Botswana pula decreased by $5.7\%$ between August 2014 and August 2015. What would be the immediate consequence of this?

  • ABotswana’s level of protection would fall.
  • BBotswana’s tourists travelling to South Africa would find it less expensive.
  • CSouth Africa’s imports would be cheaper.
  • DSouth Africa’s tourists travelling to Botswana would receive more pula per rand.

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