Economics Year 13 revision Day 26 - Exchange Rates
On day 26 of the Year 13 Recap we review the material surrounding exchange rates and the systems that prevail around the global economy.
An exchange rate is a price at which one currency exchanges for another. Businesses, holidaymakers, governments and policymakers all keep a keen eye on the exchange rate as it has important knock-on effects for each of these agents.
However, the most important thing you need to know about exchange rates is to talk about the chain of reasoning when the exchange rate either rises and falls. This reasoning will be influenced by the type of exchange rate system that prevails, but having a good understanding of how exchange rates work allows you to consider secondary effects of any policy or economic event.
Here Jack guides you through the revision slide on exchange rates: