Economics Multiple Choice Question – 30 December 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Economics
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The current account of the balance of payments for Ruritania changed from £1,000M in 2019 to £-10,000M in 2020.

Assuming that nothing else changes, what is likely to be the impact in 2020 on GDP and the exchange rate in Ruritania?

Select ONE answer:

  1. GDP – falls & Exchange rate – appreciates
  2. GDP – falls & Exchange rate – depreciates
  3. GDP – rises & Exchange rate – appreciates
  4. GDP – rises & Exchange rate – depreciates

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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