• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

A Level Economics:

Messages
180
Reaction score
63
Points
38
the government might intervene by using pounds to buy foreign currencies and build up their foreign reserves. This will artificially increase the demand for foreign currencies relative to the pound, and so the value of the pound should fall
can someone please explain this for me?
 
Messages
1,260
Reaction score
676
Points
123
sir I should not ask this but , r u sure questions may come from your guesse paper ??
last time did it happen ??
m so confused :-S
Last year all three questions were from guess of 5 questions and I am expecting the same this year IA. But keep in mind its an estimation not a confirmation. Don't blame anyone if it does not happen. Its my best effort based on evaluation and observation of examiner of CIE. Wish u very best of luck!
 
Messages
8,392
Reaction score
9,461
Points
573
the government might intervene by using pounds to buy foreign currencies and build up their foreign reserves. This will artificially increase the demand for foreign currencies relative to the pound, and so the value of the pound should fall
can someone please explain this for me?
That's very simple. The government, if would supply pounds to buy the foreign currency, would depreciate the value of pound. Graphically, this can be represented as.
1.jpg
sorry for bad presentation, but I hope it helps in understanding what I was really trying to say.
 
Messages
1,260
Reaction score
676
Points
123
That's very simple. The government, if would supply pounds to buy the foreign currency, would depreciate the value of pound. Graphically, this can be represented as.
View attachment 26756
sorry for bad presentation, but I hope it helps in understanding what I was really trying to say.
Thanks for participation sir. It would be a little more easy to understand if we put the name of currency we are talking about, on x axis. Thanks for the help once again.
 
Messages
1,260
Reaction score
676
Points
123
No problem. :)
Ah yes! But like I said, I'm not to good with paint. :p
Oh its ok sir. But if u want to get skills in computer drawings then I may guide u free of cost on Akype, sir. You are helping the students of economics tu itna tu haq banta hai k ham bhe ap kaley kuch karein.:)
I am serious if u dont mind it then we can do it. Its very simple like ABC.
 
Messages
1,260
Reaction score
676
Points
123
Guess for Paper 4 by me will be avialable very soon Insha Allah. Send your requests on facebook.
 
Top