The table below shows the average exchange rate and currency valuation estimates for four nations in comparison to the US Dollar in July 2022.
| Currency | Average exchange rate to US 1 | Currency valuation estimate |
|---|---|---|
| Canadian Dollar | 1.29 | Undervalued by 11% |
| Indian Rupee | 79.60 | Undervalued by 53% |
| South African Rand | 16.80 | Undervalued by 60% |
| Swedish Krona | 10.30 | Undervalued by 28% |
Which one of the following can be concluded from the data?
The Swedish Krona has depreciated by 28% against the US Dollar.
The South African Rand has been officially devalued by 60% against the US Dollar.
The Indian Rupee has depreciated the most against the US Dollar.
The Canadian Dollar has the closest purchasing power parity to the US Dollar.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.