A foreign exchange quotation changes from 1 US dollar = £0.74 to 1 US dollar = £0.79. What does this movement indicate about the pound?
It depreciated against the US dollar, so each pound bought fewer dollars.
It was unchanged against the US dollar, as only the dollar was being priced.
It depreciated against the US dollar, so each dollar bought fewer pounds.
It appreciated against the US dollar, as the sterling amount increased.
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.