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4.3 Exchange rates

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Question 13

An overseas investment fund loses confidence in UK assets and cancels a planned purchase of UK government debt. The money it had planned to invest remains in the fund's home currency.

What is the most likely effect on the market for pounds?

[1]
A

Supply of pounds shifts right

B

Demand for pounds shifts right

C

Demand for pounds shifts left

D

Supply of pounds shifts left

Markscheme

4.3 Exchange rates Questions

  1. GCSE
  2. /Economics
  3. /4.3 Exchange rates

53 exam-style questions on OCR GCSE Economics 4.3 Exchange rates, covering 4.3.1 Draw how exchange rates are determined, 4.3.2 Analyse how exchange rates are determined, 4.3.3 Calculate currency conversion, 4.3.4 Analyse exchange rate data, and 4.3.5 Effect of exchange rate changes. Each one has a worked solution and a mark scheme showing where the marks go.

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