Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

The value of the US dollar against other currencies is determined by demand and supply. What is this statement describing?

  • Aan alternative method of trade protection
  • Bthe determination of the exchange rate in a fixed exchange rate system
  • Cthe determination of the exchange rate in a floating exchange rate system
  • Dthe increasing globalisation of international trade

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