Economics Resources

Foreign Exchange

  • Explain why governments are sometimes concerned about the level of exchange rate of their country’s currency and discuss what policies they might adopt to influence the exchange rate. 
  • What might cause an appreciation of a floating exchange rate? 
  • Discuss whether an appreciation of a country’s exchange rate will always be beneficial to that country. 
  • Explain how the determination of a floating exchange rate differs from that of a fixed exchange rate.