1. Exchange Rates
Answer all the questions below
1. Define Exchange Rates
2. Why do exchange rates exist?
3. What can influence the exchange rate of a currency?
4. Outline the concept of Hot Money, and how this can help an economy?
5. Analyse the impact on the economy if the pound is strong against other
currencies
6. Complete the table below
Country Exchange Rate
Finland £1 =
Mexico £1 =
Australia $1 =
India £1 =