Influences On A Business - Unit 2

Question 1

what is an exchange rate?

Answer 1

an exchange rate is the price at which noe currency can be traded for another.

Question 2

what does an exchange rate tell you?

Answer 2

it tells you how currencies compare. it determines how expensive it is to buy other currencies

Question 3

what are exchange rates affected by?

Answer 3

they are affected by the economy of the country that uses the currency and by the global economy. this means they can change over time.

Question 4

what does it mean if the pound decreases?

Answer 4

if the pound decreases, you will be able to buy fewer dollars (or other currency) for the same price as before.

Question 5

what does it mean if the pound is weaker?

Answer 5

it means it is good for exporters, but bad for importers.

Question 6

what does it mean if the pound increases?

Answer 6

an increase in the pound makes exports more expensive and imports cheaper. it is just the opposite of the pound decreasing.