Quelpr

Balance of Payments and Exchange Rates · CAPE Economics Unit 2

51 past-paper questions on Balance of Payments and Exchange Rates, part of Growth, Sustainable Development and Global Relations, from every CAPE Economics Unit 2 paper on Quelpr.

Practise Balance of Payments and Exchange Rates
  1. 1(a)4 marks· CAPE Economics Unit 2 · 2006 · Paper 1Explain TWO of the specified macro-economic variables.
  2. 14(a)2 marks· CAPE Economics Unit 2 · 2006 · Paper 1If the exchange rate is 1 Kor to 1 Tol, determine the imported price of steel and corn for Lowland.
  3. 14(b)2 marks· CAPE Economics Unit 2 · 2006 · Paper 1If the exchange rate is 1 Kor = 3 Tols, determine the imported price of steel and corn for Highland.
  4. 6(b)(i)7 marks· CAPE Economics Unit 2 · 2007 · Paper 2Explain how the exchange rate is determined in a fixed exchange rate system.
  5. 6(b)(ii)6 marks· CAPE Economics Unit 2 · 2007 · Paper 2State three advantages and three disadvantages of a fixed exchange rate system.
  6. 6(b)(iii)6 marks· CAPE Economics Unit 2 · 2007 · Paper 2Explain how the exchange rate is determined in a free-floating exchange rate system.
  7. 6(b)(iv)6 marks· CAPE Economics Unit 2 · 2007 · Paper 2State three advantages and three disadvantages of a free-floating exchange rate system.
  8. 6(a)6 marks· CAPE Economics Unit 2 · 2008 · Paper 2Define the following terms: Balance of trade, Trade deficit, Trade surplus.
  9. 6(b)(iii)3 marks· CAPE Economics Unit 2 · 2008 · Paper 2Explain what is meant by The exchange rate.
  10. 6(c)10 marks· CAPE Economics Unit 2 · 2008 · Paper 2Discuss TWO types of exchange rates and give examples in EACH case of Caribbean countries that use them.
  11. 6(d)10 marks· CAPE Economics Unit 2 · 2008 · Paper 2Discuss TWO policy options that a country can use in order to correct a trade deficit.
  12. 1(a)(iv)4 marks· CAPE Economics Unit 2 · 2009 · Paper 2Define balance of payments and state how it is measured.
  13. 6(c)10 marks· CAPE Economics Unit 2 · 2009 · Paper 2Discuss TWO types of exchange rates and for EACH type, name ONE Caribbean country that uses it.
  14. 6(d)16 marks· CAPE Economics Unit 2 · 2009 · Paper 2Discuss TWO major benefits of EACH type of exchange rate discussed in (c) above.
  15. 6(e)10 marks· CAPE Economics Unit 2 · 2009 · Paper 2Analyse ONE positive and ONE negative consequence of a devaluation of your country's currency.
  16. 6(d)6 marks· CAPE Economics Unit 2 · 2010 · Paper 2Discuss TWO policy options that a country can use in order to correct a trade deficit.
  17. 4(b)(iii)2 marks· CAPE Economics Unit 2 · 2011 · Paper 2Explain how government borrowing on the domestic market to finance large fiscal deficits can affect the country's exchange rate.
  18. 4(c)4 marks· CAPE Economics Unit 2 · 2011 · Paper 2State two reasons why Caribbean residents often have a very high demand for the United States (US) dollar rather than their own domestic currency.
  19. 5(c)(i)1 mark· CAPE Economics Unit 2 · 2011 · Paper 2Define the term 'balance of payments'.
  20. 5(c)(ii)6 marks· CAPE Economics Unit 2 · 2011 · Paper 2Describe three ways in which the recent global financial crisis has negatively impacted the balance of payments of Caribbean countries.
  21. 6(a)(i)2 marks· CAPE Economics Unit 2 · 2011 · Paper 2Explain what is meant by 'exchange rate'.
  22. 6(a)(ii)3 marks· CAPE Economics Unit 2 · 2011 · Paper 2Give three examples of actual exchange rates that currently exist between Caribbean currencies and the US dollar.
  23. 6(a)(iii)4 marks· CAPE Economics Unit 2 · 2011 · Paper 2Distinguish between 'fixed exchange rates' and 'floating exchange rates'.
  24. 6(a)(iv)4 marks· CAPE Economics Unit 2 · 2011 · Paper 2State two advantages of a fixed exchange rate and two advantages of a floating exchange rate.
  25. 6(a)(i)2 marks· CAPE Economics Unit 2 · 2012 · Paper 2Explain the difference between a 'current account transaction' and a 'capital account transaction' in the balance of payments statement.
  26. 6(a)(ii)a)3 marks· CAPE Economics Unit 2 · 2012 · Paper 2Using the data in the table, calculate the current account balance.
  27. 6(a)(ii)b)2 marks· CAPE Economics Unit 2 · 2012 · Paper 2Using the data in the table, calculate the overall balance of payments.
  28. 6(b)8 marks· CAPE Economics Unit 2 · 2012 · Paper 2Outline FOUR ways in which a global recession may impact the main accounts of the balance of payments.
  29. 6(d)6 marks· CAPE Economics Unit 2 · 2012 · Paper 2Discuss TWO policy options that a country may use to correct a trade deficit.
  30. 6(c)(i)3 marks· CAPE Economics Unit 2 · 2013 · Paper 2Describe fixed exchange rates and identify ONE Caribbean country which uses them.
  31. 6(c)(ii)3 marks· CAPE Economics Unit 2 · 2013 · Paper 2Describe floating exchange rates and identify ONE Caribbean country which uses them.
  32. 6(a)(i)4 marks· CAPE Economics Unit 2 · 2014 · Paper 2Distinguish between 'nominal exchange rate' and 'real exchange rate'.
  33. 6(a)(ii)2 marks· CAPE Economics Unit 2 · 2014 · Paper 2Assume that the nominal exchange rate between Trinidad (TT) and Barbados (BBD) currency is TT 3 equivalent to BBD 1 and Barbados is the domestic country. Given that a bottle of wine costs TT $60 in Trinidad and BBD…
  34. 6(a)(iii)a)1 mark· CAPE Economics Unit 2 · 2014 · Paper 2State the effect on the price of Jamaican goods relative to foreign goods.
  35. 6(a)(iii)b)1 mark· CAPE Economics Unit 2 · 2014 · Paper 2State the effect on Jamaican imports.
  36. 6(a)(iii)c)1 mark· CAPE Economics Unit 2 · 2014 · Paper 2State the effect on Jamaican exports.
  37. 6(b)4 marks· CAPE Economics Unit 2 · 2014 · Paper 2Use the diagram below to explain the effect of an increase in demand for imported cars in Trinidad and Tobago on the demand for foreign exchange and the price of the TT dollar (nominal exchange rate).
  38. 3(c)6 marks· CAPE Economics Unit 2 · 2016 · Paper 2Describe TWO ways in which inflation impacts a country's balance of payments.
  39. 5(a)3 marks· CAPE Economics Unit 2 · 2016 · Paper 2Explain what is meant by a 'current account deficit'.
  40. 5(b)6 marks· CAPE Economics Unit 2 · 2016 · Paper 2Explain TWO ways in which Caribbean countries could improve performance on their current account.
  41. 5(c)(i)4 marks· CAPE Economics Unit 2 · 2016 · Paper 2Outline TWO ways in which expenditure-switching policies may be used to correct balance of payments disequilibrium.
  42. 5(c)(ii)4 marks· CAPE Economics Unit 2 · 2016 · Paper 2Outline TWO ways in which expenditure-reducing policies may be used to correct balance of payments disequilibrium.
  43. 5(d)8 marks· CAPE Economics Unit 2 · 2016 · Paper 2Discuss ONE positive and ONE negative effect of a current account deficit on a country.
  44. 6(c)8 marks· CAPE Economics Unit 2 · 2016 · Paper 2Discuss the effectiveness of devaluation and quota policies in addressing trade deficits.
  45. 3(a)(i)2 marks· CAPE Economics Unit 2 · 2017 · Paper 2Define the term 'balance of payments'.
  46. 3(a)(ii)3 marks· CAPE Economics Unit 2 · 2017 · Paper 2List THREE main accounts that are included in the balance of payments.
  47. 3(c)8 marks· CAPE Economics Unit 2 · 2017 · Paper 2Discuss TWO policy options that a country may adopt to correct a trade deficit and boost employment.
  48. 3(b)(i)2 marks· CAPE Economics Unit 2 · 2018 · Paper 2Outline ONE major component of the current account in the balance of payments (BOP).
  49. 3(b)(ii)3 marks· CAPE Economics Unit 2 · 2018 · Paper 2Explain how the official reserves account is used in the balance of payments.
  50. 3(d)12 marks· CAPE Economics Unit 2 · 2018 · Paper 2Analyse THREE consequences of balance of payments disequilibria.
  51. 3(b)(iii)3 marks· CAPE Economics Unit 2 · 2021 · Paper 2Explain the concept: Exchange rate depreciation.

Related topics in Growth, Sustainable Development and Global Relations