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4.1.8 Exchange rates
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Exchange rate systems

Exchange rate systems

An exchange rate is the price of one currency measured in another currency. In a floating exchange rate system, demand and supply in the foreign exchange market determine the currency's value. An increase in demand for a currency causes it to appreciate, while a decrease in demand causes it to depreciate, other things being equal.

4.1.8 Exchange rates Lesson

  1. A Level
  2. /Economics
  3. /4.1.8 Exchange rates

Step-by-step lessons covering Edexcel A A Level Economics 4.1.8 Exchange rates for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.