Exchange rates (Edexcel GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
ShowHide
Practise the questions
12 questions from this quiz
What does an exchange rate represent?
What does an exchange rate represent?
The cost of purchasing foreign currency
A UK firm buys 2, what is the cost in pounds?
A UK firm buys 2, what is the cost in pounds?
£400
A UK firm sells £300 worth to USA. If £1 = $2, how many dollars do they receive?
A UK firm sells £300 worth to USA. If £1 = $2, how many dollars do they receive?
$600
What common mistake do students make when calculating the pound cost of imports?
What common mistake do students make when calculating the pound cost of imports?
They multiply instead of divide
How does a falling pound affect UK exporters?
How does a falling pound affect UK exporters?
British goods become less expensive abroad
Why does UK tourism benefit when the pound falls in value?
Why does UK tourism benefit when the pound falls in value?
UK becomes more affordable for visitors
What challenge do import-dependent businesses face when the pound falls?
What challenge do import-dependent businesses face when the pound falls?
Higher costs for foreign materials
How does a rising pound affect UK importers?
How does a rising pound affect UK importers?
Foreign materials become cheaper
What challenge do UK exporters face when the pound rises?
What challenge do UK exporters face when the pound rises?
Products become more expensive abroad
What is a weaker pound often called?
What is a weaker pound often called?
Depreciating or devaluing currency
Which type of business prefers a weaker pound?
Which type of business prefers a weaker pound?
Manufacturing companies that export
Which businesses favour a stronger pound?
Which businesses favour a stronger pound?
Retailers importing goods