What is a likely effect of a depreciation of the pound on a UK firm importing raw materials?
Its imported inputs become cheaper in pounds
Its imported inputs become more expensive in pounds
Its export price automatically rises abroad
Its demand for pounds increases
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.