Demand for UK exports rises while UK residents buy fewer foreign assets. Which pair of exchange-market effects is most likely?
Demand for pounds falls, supply of pounds rises and the pound depreciates
Demand for pounds rises, supply of pounds falls and the pound appreciates
Demand for pounds rises, supply of pounds rises and the pound must depreciate
Demand for pounds stays unchanged, supply of pounds falls and the pound depreciates
48 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.