0455.6.3.1 — definition of foreign exchange rate Floating and fixed systems.: past paper questions
Real questions on 0455.6.3.1 — definition of foreign exchange rate floating and fixed systems.
The newest 20 of 36 written questions. Open one to see it on the real paper.
- 0455/23 · May/June 2026 · Q4d[8]
Discuss whether or not a fall in the foreign exchange rate of a currency is an advantage for an economy.
See it on the paper → - 0455/21 · October/November 2025 · Q1f[5]
Analyse the relationship between the global GDP growth rate and the change in the value of the Swiss franc.
See it on the paper → - 0455/23 · October/November 2025 · Q1h[6]
Discuss whether or not a government should try to stop its country’s foreign exchange rate falling in value. Section B Answer any three questions. Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied.
See it on the paper → - 0455/21 · May/June 2025 · Q5d[8]
Discuss whether or not having a floating exchange rate benefits an economy.
See it on the paper → - 0455/22 · February/March 2025 · Q4c[6]
Analyse the causes of an increase in the demand for foreign currency.
See it on the paper → - 0455/12 · October/November 2024 · Q29[1]
The price of the US dollar in terms of other currencies is set by the forces of demand and supply. To what does this statement refer?
See it on the paper → - 0455/23 · October/November 2024 · Q5c[6]
Analyse the possible causes of a fall in a country’s foreign exchange rate.
See it on the paper → - 0455/22 · May/June 2024 · Q1h[6]
whether or not a rise in the value of the Tunisian dinar would benefit the Tunisian economy.
See it on the paper → - 0455/12 · October/November 2023 · Q29[1]
Which factor would cause a country’s exchange rate to fall?
See it on the paper → - 0455/12 · October/November 2023 · Q30[1]
Many European firms employ workers from the Philippines. These workers send part of their income to relatives in the Philippines. In which part of the balance of payments current account for the Philippines would these transactions be recorded?
See it on the paper → - 0455/21 · May/June 2023 · Q4d[8]
whether or not a rise in a country’s foreign exchange rate would benefit its economy.
See it on the paper → - 0455/22 · May/June 2023 · Q4b[4]
Explain two causes of an increase in the value of a country’s floating foreign exchange rate.
See it on the paper → - 0455/22 · February/March 2023 · Q1a[1]
Calculate the value of US imports from China in 2020.
See it on the paper → - 0455/12 · October/November 2022 · Q27[1]
The table shows some details from a country’s balance of payments. The country has no secondary income (current transfers). What is the country’s balance on its current account?
See it on the paper → - 0455/21 · October/November 2022 · Q3d[8]
Discuss whether or not a country will benefit from having a fixed foreign exchange rate system.
See it on the paper → - 0455/22 · October/November 2022 · Q1a[1]
how many dollars 6400 Nigerian naira would have bought in 2019.
See it on the paper → - 0455/22 · October/November 2022 · Q5c[6]
how a fall in a country’s foreign exchange rate could increase its inflation rate.
See it on the paper → - 0455/21 · May/June 2022 · Q2a[2]
foreign exchange rate.
See it on the paper → - 0455/22 · February/March 2022 · Q2c[6]
Analyse how a fall in a country’s foreign exchange rate could reduce a deficit on the current account of its balance of payments.
See it on the paper → - 0455/11 · October/November 2021 · Q30[1]
What is an immediate effect for a country of a fall in its foreign exchange rate?
See it on the paper →
What examiners said
Responses to this question varied. A small number of candidates were confused by the concept of a floating exchange rate. Many responses were limited to the difference between a strong and weak currency without answering the question with respect to the effects of the floating exchange rate regime. The focus was often on the relatively higher or lower price of imports or exports based on the chang...
— Examiner report, May/June 2025, 0455/21 Q5(d) (Cambridge)
It was pleasing how well this question was answered. In the past candidates have struggled with questions on the foreign exchange rate but these time there were many good answers. These included some particularly good analysis of the effects of an increase in the interest rate and foreign direct investment.
— Examiner report, February/March 2025, 0455/22 Q4(c) (Cambridge)
Most candidates understood what was meant by a country’s foreign exchange rate, but a sizeable minority did not. Even where they did understand, quite a few candidates gave an incorrect explanation of the impact of a rise in the foreign exchange rate. They stated that the result would be that exports would be cheaper and imports more expensive and then described the consequences of that, which did...
— Examiner report, May/June 2023, 0455/21 Q4(d) (Cambridge)
Past papers, syllabus and examiner reports © UCLES (Cambridge University Press & Assessment). Questions are matched to topics from the official syllabus. AssessPro is independent and not endorsed by Cambridge.