Currency and Exchange Rates

Unknown Grade45 minutes

Learning Objective

I can explain how currency exchange rates affect international trade and pricing of goods.

Practice Questions

This lesson includes 5 practice questions to reinforce learning.

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1. Explain what happens to the price of American goods in China when the Chinese yuan depreciates against the U.S. dollar.

2. Describe how a depreciation of the Chinese yuan could affect the behavior of Chinese consumers regarding American imports.

3. If the U.S. government increases borrowing and interest rates rise, how might this affect the demand for Chinese goods in the United States?

...and 2 more questions

Educational Video

Introduction to currency exchange and trade | AP Macroeconomics | Khan Academy

Khan Academy

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