Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

A shift in a country's foreign exchange rate led to a fall in the value of its currency. Which outcome is not likely to occur?

  • AThe costs of imported raw materials will fall.
  • BThe country’s export trading position will become more competitive.
  • CThe country’s residents will find it more expensive to take holidays abroad.
  • DThe current account deficit will be unchanged.

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