The table below shows the average exchange rate and currency valuation estimates for four nations in comparison to the Euro (€) in October 2023.
| Currency | Average exchange rate to €1 | Currency valuation estimate |
|---|---|---|
| Japanese Yen (¥) | 160.00 | Undervalued by 42% |
| Swiss Franc (CHF) | 0.95 | Overvalued by 18% |
| Brazilian Real (BRL) | 5.30 | Undervalued by 31% |
| Australian Dollar (AUD) | 1.65 | Undervalued by 14% |
Which one of the following can be concluded from the data?
The Japanese Yen has depreciated by 42%42\%42% against the Euro over the preceding year.
The Swiss Franc is the currency furthest from its purchasing power parity rate with the Euro.
The Australian Dollar is closest to its purchasing power parity rate with the Euro.
The Central Bank of Brazil has officially devalued the Brazilian Real by 31%31\%31% against the Euro.
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.