Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

In $2009$ the exchange rate for the Singapore dollar shifted from $1.49$ Singapore dollars $= 1$ US dollar to $1.43$ Singapore dollars $= 1$ US dollar. What effect would this have on Singapore's import prices and export prices?

  • Aprices paid by Singapore for imports: decrease; prices paid to Singapore for exports: decrease
  • Bprices paid by Singapore for imports: decrease; prices paid to Singapore for exports: increase
  • Cprices paid by Singapore for imports: increase; prices paid to Singapore for exports: decrease
  • Dprices paid by Singapore for imports: increase; prices paid to Singapore for exports: increase

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