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The balance of payments and exchange rates
Practice Questions

40 CXC CAPE Economics questions on The balance of payments and exchange rates, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for The balance of payments and exchange rates.

Try 2 sample questions on The balance of payments and exchange rates

Question 1 · 1 mark · Difficulty 1/3

What is the balance of payments?

  1. The record of all transactions between a country's residents and the rest of the world over a period
  2. The total foreign currency held by the central bank
  3. The government's spending against its revenue over a year
  4. The difference between a country's exports and its imports of goods
Show answer & explanation
✓ Answer: A — The record of all transactions between a country's residents and the rest of the world over a period
Award 1 mark. It always balances, so a balance of payments problem means a persistent current account deficit rather than accounts that fail to add up.
Question 2 · 1 mark · Difficulty 1/3

Which items make up the current account?

  1. Foreign direct investment, portfolio flows and reserves
  2. Trade in goods and trade in services only
  3. Exports, imports and the government budget balance
  4. Trade in goods, trade in services, primary income and secondary income
Show answer & explanation
✓ Answer: D — Trade in goods, trade in services, primary income and secondary income
Award 1 mark. Naming all four separately earns marks that a general reference to trade does not.
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20 questions · 25 min · free

CXC CAPE Economics: The balance of payments and exchange rates FAQ

Is Kramizo free for CXC CAPE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix The balance of payments and exchange rates practice with other Economics topics or even switch to a totally different CXC CAPE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the The balance of payments and exchange rates questions aligned to the official CXC CAPE Economics syllabus?
Every question is written against the published CXC CAPE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CXC CAPE.
How is The balance of payments and exchange rates typically tested on CXC CAPE Economics papers?
The balance of payments and exchange rates appears across multiple question types on real CXC CAPE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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