Economic Factors LO6

What is the term used to describe the price of one currency expressed in another currency?

• Exchange rate

• Interest rate

• Inflation rate

• Conversion rate

What is a strong pound good for?

• Imports

• Exports

• Domestic sales

• Tourism

Why might exports seem more expensive with a stronger pound?

• Increased production costs

• Higher exchange rate

• Lower demand

• Increased tariffs

What is the effect on UK exports when the pound is strong?

• Exports become dearer

• Exports become cheaper

• Exports remain the same

• Exports increase in volume

What is the mnemonic used to remember the effects of a strong pound?

• SPICED

• SPICE

• SPICY

• SPICES

What are foreign exchange transaction costs ?

• Bank fees

• Shipping costs

• Commission businesses pay for foreign currency

• Advertising expenses

Strong pound imports

What is 'inflation'?

• a sustained increase in the average price level of a country

• prices falling

• the number of people out of work

• interest rate increases

The retail price index and ? are used to measure the change in prices?

The Consumer Price Index is calculated from what

• A selected basket of goods and services.
• The total income of consumers.
• A random selection of fruits.
• The average salary of workers.