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(a)
Using the information provided in the Table 2 below:
Table 2:
Year
Spot Exchange Rate
January 2021
2.99 RM/S$
September 2021
3.11 RM/S$
(i)
Indicate whether the Ringgit Malaysia will appreciate or depreciate relative to the
Singapore dollar.
(2 marks)
(ii)
Find the amount in percentage-change terms of appreciation/depreciation.
(2 marks)
(iii)
Explain the impact of the exchange-rate change on Singapore consumers purchasing
power over Malaysian goods and services relative to their purchasing power over
Singaporean goods and services.
(2 marks)
Answer & Explanation
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