This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Click to read the article below and then answer the questions:
The bad news for the pound is not all in the price
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‘The argument is that sentiment is so widely bearish that all the bad news is in the price and the currency is notably oversold.’ Explain what is meant by ‘bearish’
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Using an exchange rate diagram, analyse the effects of ‘widely bearish’ sentiment on the value of sterling
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With reference to Chart 1, calculate the percentage change in the value of sterling during the period shown
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‘The UK is now running a (current account) deficit equivalent to 8 per cent of GDP.’ Analyse the consequences for the current account of a weak pound
Gavin Clarke, Emmanuel College
