Economic Influences (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is an exchange rate?
What is an exchange rate?
Price of one currency in terms of another
A UK firm buys goods for £50,000. If £1 = €1.20, what is the cost in euros?
A UK firm buys goods for £50,000. If £1 = €1.20, what is the cost in euros?
€60,000
A UK business imports 1.50, what is the cost in pounds?
A UK business imports 1.50, what is the cost in pounds?
£300,000
When the pound appreciates, what happens to UK exports?
When the pound appreciates, what happens to UK exports?
More expensive for foreign buyers
When the pound appreciates, what happens to imports?
When the pound appreciates, what happens to imports?
Cheaper for UK buyers, demand rises
When the pound depreciates, what happens to UK exports?
When the pound depreciates, what happens to UK exports?
Cheaper for foreign buyers, demand rises
What does SPICED stand for?
What does SPICED stand for?
Strong Pound, Imports Cheaper, Exports Dearer
Who benefits when a currency depreciates?
Who benefits when a currency depreciates?
Exporters
What commission do financial institutions typically charge for currency conversion?
What commission do financial institutions typically charge for currency conversion?
Around 2%
What is the main challenge of fluctuating exchange rates for businesses?
What is the main challenge of fluctuating exchange rates for businesses?
Creates uncertainty for planning & budgeting