Unit 4: The Global Economy
Topic 4.5: Exchange Rates Questions
Practice 20 exam-style questions for IB Economics Topic 4.5. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
11 mark
In a floating exchange rate system, the value of a currency is determined by:
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2026
Calculate the cost of the basket in the second country's currency.
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2026
A text says that the Sarnia real rose strongly after new oil discoveries.
Define the term appreciation.
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2026
Define the term depreciation of a currency.
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2026
State whether the vela appreciated or depreciated over the year.
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2026
A text explains that Talvane has pegged its dinar to the euro since 2012.
Define the term fixed exchange rate.
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2026
Calculate the cost of the shopping in US dollars.
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2026
A text explains that the Halden krona has floated freely since 2019.
Define the term floating exchange rate.
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2026
Define the term fixed exchange rate.
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2026
Define the term appreciation of a currency.
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In a fixed exchange rate system, the value of a currency is:
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2026
Describe the movement in the exchange rate shown by the data.
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A depreciation of a country's currency would most likely lead to:
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Distinguish between an appreciation and a depreciation of a currency.
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2026
Using the monthly figures given, state whether this currency gained or lost value against the US dollar between January and December.
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2026
Describe the movement in this currency over the year.
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2026
A text reports that the Oredon peso fell against the US dollar for a third year running.
Define the term depreciation.
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If a country's currency appreciates, which of the following is most likely to occur?
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2026
Define the term floating exchange rate.
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2026
Define the term overvalued currency.
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