Exchange Rates Practice
A currency is just another good with a price. Shift demand and supply in the foreign-exchange market and watch the dollar appreciate or depreciate. Then answer five exam-style questions on interest-rate differentials, trade effects, currency conversion, and defending a fixed exchange rate.
One tile of the full the open economy unit.
The course teaches the open economy interactively — drag the graphs, practice with feedback, and spaced reviews bring it back before you forget. Free.
Interactive graph
Pick a shock — higher interest rates, a taste for imports, foreign investment — and follow the shift through to the new exchange rate.
Five practice questions
Pick an answer, then click Check answer to see the explanation.
Question 1 of 5
Interest rates in the United States rise while rates in the euro area are unchanged. What happens in the foreign-exchange market for dollars?
Question 2 of 5
The Japanese yen appreciates against other currencies. What is the likely effect on Japan's trade?
Question 3 of 5
A German car costs €40,000. The exchange rate moves from €1 = $1.25 to €1 = $1.10. What happens to the car's price in dollars?
Question 4 of 5
A country pegs its currency to the US dollar. Speculators start selling the currency, putting downward pressure on it. To defend the peg, the central bank must:
Question 5 of 5
Incomes abroad rise and foreigners buy more American goods. In the foreign-exchange market for dollars, what happens?
What the course adds
Beyond this one page
The open-economy unit has dozens of practice questions on exchange-rate determination, the balance of payments, the J-curve, and fixed versus floating regimes. Each session pulls from your weak spots — not the same five questions every time.
Spaced reviews
FSRS brings every concept back right before you'd forget. ~50% better retention than re-reading.
Per-concept mastery
Performance Factor Analysis tracks each sub-skill separately — you see which version of the idea is still wobbly.
Diagnostic placement
A short test skips you past what you already know. No re-learning the basics.
For instructors
Assign this to your class
Free, no account needed for students. Paste either snippet into Canvas, Moodle, Blackboard, Google Classroom, or your slide deck.
Sends students to the full page with the worked example and related lessons.
Inlines just the interactive widget in your LMS — no nav, no footer, no signup wall.
Want 50+ more problems with instant feedback?
The full Econ Academy open-economy unit includes adaptive practice, spaced repetition, and mastery tracking so you stop forgetting what you just learned.