A UK animation studio charges a Japanese client for a film in pounds. The studio leaves its price unchanged, but the client now pays fewer yen than before.
What is a likely explanation for this outcome?
The pound appreciated, so each pound now buys fewer yen
The pound depreciated, so each pound now buys fewer yen
The pound appreciated, so each pound now buys more yen
The pound depreciated, so each pound now buys more yen
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.