Interest & Exchange Rates 1.0 / 5 based on 1 rating ? Business StudiesInterest RatesExchange RatesGCSEEdexcel Created by: rashed98Created on: 02-05-14 20:14 What is an exchange rate? The price of buying foreign currency 1 of 8 If the value of the pound decreases, who will be affected? UK importers of materials 2 of 8 If the value of the pound increases, who will benefit most? UK importers of materials 3 of 8 What is an interest rate? The percentage reward or payment over a period of time that is given to savers on savings or paid by borrowers on loans 4 of 8 Interest rates are most likely to be cut when the economy is: Entering a recession 5 of 8 A business is most likely to be badly affected by a rise in interest rates if it has: High borrowings at a variable rate 6 of 8 In the UK, the base interest rate is set by... Monetary Policy Commitee 7 of 8 What is meant by a fixed interest rate? An interest rate which will not change at whatsoever over the life of a loan 8 of 8
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