Economics Multiple Choice Question – 28 April 2023

A depreciation of the exchange rate of the pound sterling against the US dollar from £1 : $1.50 to £1 : $1.00 must mean that…..?

Select ONE answer:

1. the pound will be undervalued.
2. US imports from the UK will become more expensive.
3. UK imports from the US will become cheaper.
4. dollars will become more expensive in terms of pounds.

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 4

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

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