IGCSE Business Mid Lesson Plenary PEST 1

An increase in the interest rate will lead to a reduction in profits for most businesses.

• True

• False

A depreciation in the value of a country’s currency will benefit all businesses in the economy.

• True

• False

An appreciation in the value of a country’s currency will generally benefit exporters.
True or false?

• True

• False

If a country’s currency depreciates, imported goods will become cheaper for domestic consumers.
True or false?

• True

• False

An increase in interest rates is likely to reduce consumer spending.
True or false?

• False

• True

A strong domestic currency can make it harder for local businesses to compete with foreign imports.
True or false?

• False

• True