d) Factors influencing floating exchange rates

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supply and demand fluctuation factors
Paper 2- UK economy performance & policies > Theme 4: A global perspective > 4.1 International economics > 4.1.8 Exchange rates > d) Factors influencing floating exchange rates
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what are Floating exchange rates determined by?
the interaction of demand and supply and affected by changes in demand and supply.
an increase in supply of pounds to S1 causes a decrease in the value of the pound
increase in supply may be due to increase in imports to the UK and increased selling of the pound
a decrease in the demand for pounds to D1 causes a decrease in the value of the pound to P1
decrease in demand may be due to decrease in exports from the UK and decreased buying of the pound

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d) Factors influencing floating exchange rates

Subdecks (1)

supply and demand fluctuation factors

Cards (11)

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