
The diagram shows demand for pounds shifting from D1 to D2 while supply shifts from S1 to S2. Which outcome is certain?
The pound appreciates
The pound depreciates
The equilibrium quantity of pounds traded increases, but the exchange-rate effect is uncertain
Both exchange rate and quantity remain unchanged
21 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.