Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 21

Country X conducts 60% of its trade with country Y and 40% of its trade with country Z. The initial value of the trade-weighted exchange rate index of country X is 100. What will be its new trade-weighted exchange rate index value if its currency falls in value by 20% against the currency of country Y and rises by 10% against the currency of country Z?

1. A84
2. B90
3. C92
4. D116

As printed in the paper