Economics GCSE
Exchange rates
What Exchange rates means in Economics GCSE, as defined for AQA.
Definitions of Exchange rates
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Reference: AQA
A strong rate makes exports expensive and imports cheap, while a weak rate boosts export demand and makes imports more expensive.
The value of a currency, which in a floating system is determined by the market forces of supply and demand.
Topics that use Exchange rates
- Balance of payments (AQA GCSE)
- Exchange rates (AQA GCSE)
Related terms
- Balance of payments
- Balance of trade
- Current account
- Current account deficit
- Current account surplus
- Economic growth
- Expenditure-reducing policies
- Foreign exchange markets
Using Exchange rates in the exam
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