What this practice covers
These questions are drawn from past Cambridge IGCSE papers and filtered to foreign exchange rates. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on foreign exchange rates, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Using devaluation for a market movement; that is depreciation.
- Getting SPICED backwards.
- Saying a depreciation is simply good, ignoring imported inflation.
- Forgetting that a depreciation raises the cost of imported raw materials for domestic firms.
- Ignoring elasticity when judging the effect on the current account.
- Confusing demand for and supply of the currency. Remember imports supply the domestic currency.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Foreign Exchange Rates revision notes.