Quelpr
6 marksBalance of Payments and Exchange Rates

CSEC Economics · May/June 2014 · Paper 2 · Question 3(c)

Describe TWO disadvantages that may accrue to a Caribbean country moving from a fixed exchange rate to a floating exchange rate system.

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Other parts of this question

  1. 3(a)(i)Define the term 'exchange rate revaluation'.[2 marks]
  2. 3(a)(ii)Define the term 'managed exchange rate'.[2 marks]
  3. 3(b)State the name of the protectionist measure that limits the quantity of goods entering a country.[1 mark]
  4. 3(d)Analyse ONE benefit of using devaluation to correct a balance of payments problem.[4 marks]

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