Foreign Exchange Markets and Establishment of Foreign Exchange Rates (Grade 12 NSC Matric Economics): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does a foreign exchange rate represent?
What does a foreign exchange rate represent?
Price of one currency in terms of another
Why does the foreign exchange market operate 24 hours a day?
Why does the foreign exchange market operate 24 hours a day?
Different time zones keep centres open
What occurs at the equilibrium point in a foreign exchange market?
What occurs at the equilibrium point in a foreign exchange market?
Quantity demanded equals quantity supplied
Which activity creates demand for foreign currency?
Which activity creates demand for foreign currency?
South African tourists spending overseas
If the rand moves from 1 USD = R10 to 1 USD = R9, what has occurred?
If the rand moves from 1 USD = R10 to 1 USD = R9, what has occurred?
Rand appreciation
What is the key difference between revaluation and appreciation?
What is the key difference between revaluation and appreciation?
Revaluation is government action
How does a central bank weaken an overvalued currency through direct intervention?
How does a central bank weaken an overvalued currency through direct intervention?
Sells foreign exchange
If terms of trade index rises from 120 to 125, what has happened?
If terms of trade index rises from 120 to 125, what has happened?
Terms of trade improved
Which sector dominates South African exports?
Which sector dominates South African exports?
Manufacturing at 50.29%
Which region is South Africa's largest trading partner?
Which region is South Africa's largest trading partner?
Asia with 44.2% imports, 45.3% exports