Day: August 7, 2017

Business Studies Multiple Choice Question – 7 August 2017

A UK business sells goods in Spain. The exchange rate between the pound and Euro increases from €1.5 to €2.

Which TWO of the following would be the MOST LIKELY results of this change in the exchange rate for a UK retailer?

Select TWO answers:

  1. The price of the goods in Spain will increase
  2. The price of the goods in Spain will decrease
  3. The business will sell more abroad
  4. The business will sell less abroad
  5. The business will sell less in the UK

When exchanging from pounds to a foreign currency the rule is……?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 1 & 4 – The cost of selling a good worth £20 from the UK to Spain at an exchange rate of €1.5 will be €30. The cost of selling a good worth £20 from the UK to Spain at an exchange rate of €2 will be €40, a cost increase of €10.

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