CAPE Economics Unit 2 · 2007 · Paper 2 · Question 6(b)(ii)
State three advantages and three disadvantages of a fixed exchange rate system.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 6(a)Discuss five arguments that may be used by Caribbean countries in order to keep out imports from foreign countries.[25 marks]
- 6(b)(i)Explain how the exchange rate is determined in a fixed exchange rate system.[7 marks]
- 6(b)(iii)Explain how the exchange rate is determined in a free-floating exchange rate system.[6 marks]
- 6(b)(iv)State three advantages and three disadvantages of a free-floating exchange rate system.[6 marks]
More practice: the rest of this paper · more Balance of Payments and Exchange Rates questions · all CAPE Economics Unit 2 past papers