Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

During 2015, China was the largest importer of oil in the world. In August 2015, China lowered the value of its currency. What was likely to have happened?

  • AThe price of China’s exports fell and world oil prices rose as China’s demand decreased.
  • BThe price of China’s exports rose and world oil prices fell as China’s demand increased.
  • CThe price of China’s imports fell and world oil prices rose as China’s demand increased.
  • DThe price of China’s imports rose and world oil prices fell as China’s demand decreased.

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