DP Economics
Question SPM.1.SL.TZ0.a
| Date | May specimen first teaching 2021 | Marks available | [Maximum mark: 10] | Reference code | SPM.1.SL.TZ0.a |
| Level | SL | Paper | 1 | Time zone | TZ0 |
| Command term | Explain | Question number | a | Adapted from | N/A |
a.
[Maximum mark: 10]
SPM.1.SL.TZ0.a
Explain two factors which influence the value of a currency in a floating exchange rate system.
[10]
Markscheme
Answers may include:
- Definition: floating exchange system.
- Explanation: an explanation of how the value of a floating exchange rate is determined, including demand for exports and imports, speculation, relative interest rates, remittances, portfolio flows, relative inflation rates, foreign direct investment.
- Diagram: demand and supply diagram to show determination of an exchange rate.
