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Exchange rates

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Question 3

The European Union is Cape Verde's main trading partner, accounting for around 70% of Cape Verde's total international trade. Tourism, largely from EU countries, accounts for approximately 25% of Cape Verde's gross domestic product (GDP) and employs over 35% of its workforce.

Cape Verde maintains a fixed exchange rate system, pegging the Cape Verdean Escudo (CVE) to the Euro (EUR).

Evaluate, using an appropriate diagram(s), whether it is beneficial for Cape Verde to operate a fixed exchange rate system.

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Markscheme

Exchange rates Questions

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

30 exam-style questions on OCR A Level Economics Exchange rates. Each one has a worked solution and a mark scheme showing where the marks go.

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