A-level Paper 2, November 2020The National and Global Economy
A-level Paper 2, November 2020, Q3(b)
Which one of the following is most likely to happen to Argentina’s currency value as a result of capital flight, assuming it is operating with a floating exchange rate system?
Multiple choice1 mark
Context
In 2018, the International Monetary Fund (IMF) lent Argentina $57 billion as part of a bailout package to help prevent the country’s government defaulting on its debts. This financial crisis also caused significant capital flight out of Argentina’s economy.
AAppreciation
BDepreciation
CDevaluation
DRevaluation
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