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A Level Economics:

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Aoa I don't know if you are a teacher or not but I think you are so I would please ask your help to please shine some light as to how I should revise for my alevel economics exam which I will be taking next session 2014 may/june

I will be giving As and A2 at the same time as I don't think much of it will be a burden on me, I live abroad so I don't have access to good Pakistani tutors and I am studying privately without any guidance from anyone, other than the fact that I get some help from the kind students over here on this website.

I would like to know how should I start on revising for this subject as pretty much is similar to olevel economics, and I can solve most of the mcq's in paper 1, which gives me the hint that I have studied well in olevels for this subject. I have tried making notes and then revising and it does not work on me at all as usually the content is very long and then I revise in the last minute, so I need some suggestions as to how I should overcome this and how to better understand all the new concepts that alevel economics has to bring

Would appreciate this alot

Kind Regard
 
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Hope your preparation for June 2014 is going well. If you people have any doubts then do post here.
 
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Hope all of you are doing well. Continue your hardwork to ensure a wonderful grade in economics.
 
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in an opean economy ,the domestic money supply is increased at a rate in excess of the growth of the country
to maintain fixed exchange rate it will be necessary to
A)the central bank to sell foreign currency and buy domestic currency
B)the central bank to buy foreign currency and sell domestic currency
C)the rate of intrest to be reduced
D)An outflow of capital to be encouraged
 
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in an opean economy ,the domestic money supply is increased at a rate in excess of the growth of the country
to maintain fixed exchange rate it will be necessary to
A)the central bank to sell foreign currency and buy domestic currency
B)the central bank to buy foreign currency and sell domestic currency
C)the rate of intrest to be reduced
D)An outflow of capital to be encouraged
I think A is the best answer because whenever there is increased supply, demand of currency should be matched to maintain fixed exchange rate. buying more domestic currency means increasing the demand for domestic currency in an artifical way.
 
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I think A is the best answer because whenever there is increased supply, demand of currency should be matched to maintain fixed exchange rate. buying more domestic currency means increasing the demand for domestic currency in an artifical way.
why cant i be C ?
 
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in an opean economy ,the domestic money supply is increased at a rate in excess of the growth of the country
to maintain fixed exchange rate it will be necessary to
A)the central bank to sell foreign currency and buy domestic currency
B)the central bank to buy foreign currency and sell domestic currency
C)the rate of intrest to be reduced
D)An outflow of capital to be encouraged
 
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Dear let me see the question first.
in an opean economy ,the domestic money supply is increased at a rate in excess of the growth of the country
to maintain fixed exchange rate it will be necessary to
A)the central bank to sell foreign currency and buy domestic currency
B)the central bank to buy foreign currency and sell domestic currency
C)the rate of intrest to be reduced
D)An outflow of capital to be encouraged
 
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why cant i be C ?

It cant be C because if the rate of interest is reduced, the foreign investors will be less-willing to invst in country's banks and the demand for the currency will reduce... in turn higher rates of interest elsewhere may force the people to invest abroad increasing supply of the currency this will reduce the rate of exchange even further and will not fulfil the requirment of maintaining a fixed exchange rate.
 
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when supply of currency is higher then higher demand will only help to maintain the exchane rate at fixed level. while in C lower interest rate will reduce demand and there will be further depreciation of currency. interest rate is directly related to the demand for currency and inversly related to supply of currency
 
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