IBonomics2026-W17
Foreign-exchange diagram questions pull down accuracy — practise shifts and flows
This week students scored well overall but showed concentrated errors on foreign-exchange diagram questions (Unit 4.5) involving inflation, remittances and demand/supply shifts.
Published May 3, 2026
Total attempts
195
Unique users (aggregate)
40
Average score
80.0%
Overall question accuracy
77.9%
Avg time per question
53 s
Lowest correct rate (top item)
18% (FX: relative inflation)
1. Weekly Overview
Good average performance, specific weakness in FX diagrams
Aggregate results show a solid mean score (~80%) but the weakest items cluster in Global Economy (Unit 4.5). Students handle straightforward import/export shifts well, yet struggle with questions that combine inflation differentials, remittance flows and expectations — and those items also take longer on average.
Student takeaway: Focus revision on how specific transactions and expectations shift demand or supply in the foreign-exchange market (Unit 4.5).
2. Key Patterns
Main Insights
FX diagram mechanics are the main weakness
The lowest‑scoring items are all in Global Economy (Unit 4.5) and ask for shifts in the foreign‑exchange market when transactions or expectations change.
Advice: Practice mapping specific transactions (imports/exports, capital flows, remittances) to demand/supply shifts and explain the direction in one sentence before drawing the diagram.
Students handle direct trade shifts well but struggle with layered flows
Questions that involve a single, clear change in foreign demand for US goods had high correct rates (including multiple items at 100%), while questions combining several flows (remittances, pensions, inflation expectations) show mixed performance.
Advice: Separate multi‑part scenarios into individual flows (goods, capital, transfers) and label which side of the FX market each affects before answering.
Long response times flag hesitation on some FX and remittance items
Several FX and remittance questions show much higher average times than the overall mean, suggesting students pause or work through multi-step reasoning on these items.
Advice: Timed practice on similar FX diagram problems (60–90s per item) will build fluency and reduce hesitation.
3. Revision Plan
Priority Areas
Foreign-exchange market shifts (demand vs supply) · 4.5
Concentrated low accuracy on diagram questions about price movements.
Action: Do 10 diagram exercises: identify the transaction (export/import/capital/transfer), state the immediate effect (more/less demand or supply for currency), then draw the shift and final price.
Relative inflation and purchasing power effects · 4.5
Lowest correct rate on question about faster domestic inflation vs trading partners.
Action: Review how higher domestic inflation affects exports/imports and currency demand; write two short explanations (words + diagram) for each scenario.
Capital flows & expectations (speculation) · 4.5
Mixed performance on expectation-driven currency moves.
Action: Practice 6 questions linking expected future returns to present capital flows and immediate FX price shifts.
Current account transfers (remittances, pensions) · 4.5
Half-correct rate and long times on remittance-flow question indicate conceptual confusion.
Action: Do 5 worked examples showing how remittances and cross‑border income receipts enter the current account and affect currency demand/supply.
4. Question Evidence
Featured Questions
Most Wrong Questions
| Question | Topic | Unit | Attempts | Correct | Wrong | Avg Time |
|---|---|---|---|---|---|---|
| US inflation rises faster than in its main trading partners. What is the likely impact on the price of the dollar in the foreign exchange market? | Global Economy | 4.5 | 22 | 18.2% | 81.8% | 15.7 s |
| A Buy American campaign reduces US imports of South African wine. What happens to the dollar in the foreign exchange market? | Global Economy | 4.5 | 20 | 35.0% | 65.0% | 57.1 s |
| More Mexican workers in the USA send money home while more US retirees in Mexico send pension income back to the USA. How would you show these remittance flows on the diagram? | Global Economy | 4.5 | 24 | 50.0% | 50.0% | 2.2 min |
| A recession in South Africa causes firms there to cut back sharply on imports of US machinery. In the foreign exchange market for the US dollar (USD) against the South African rand, what happens to the demand curve for USD? | Global Economy | 4.5 | 15 | 26.7% | 73.3% | 22.1 s |
| Currency traders expect the US dollar to strengthen in the near future and start buying large amounts of dollars now. What is the likely impact on the price of the dollar in the foreign exchange market? | Global Economy | 4.5 | 23 | 56.5% | 43.5% | 34.3 s |
Most Correct Questions
| Question | Topic | Unit | Attempts | Correct | Wrong | Avg Time |
|---|---|---|---|---|---|---|
| More Americans choose to holiday in Indonesia and increase their spending there. How does this affect the US dollar in the foreign exchange market? | Global Economy | 4.5 | 39 | 74.4% | 25.6% | 47.4 s |
| European firms sharply increase their purchases of US-made AI software. In the foreign exchange market for the US dollar (USD) against the euro, what happens on the diagram? | Global Economy | 4.5 | 22 | 100.0% | 0.0% | 22.0 s |
| A trade dispute leads China to reduce its imports of US soybeans. In the foreign exchange market for the US dollar (USD) against the Chinese yuan, what shift occurs on the diagram? | Global Economy | 4.5 | 19 | 100.0% | 0.0% | 27.0 s |
| China tightens controls on trading the yuan, and many speculators move their funds into US dollar assets instead. What is the likely impact on the price of the dollar in the foreign exchange market? | Global Economy | 4.5 | 27 | 70.4% | 29.6% | 19.1 s |
| A US fast food chain expands its restaurant network in Indonesia. How does this outward FDI affect the dollar in the foreign exchange market? | Global Economy | 4.5 | 29 | 65.5% | 34.5% | 27.2 s |
Most Time Spent Questions
| Question | Topic | Unit | Attempts | Correct | Wrong | Avg Time |
|---|---|---|---|---|---|---|
| Which of the following is NOT a common reason for government intervention in markets? | Microeconomics | 2.7 | 4 | 100.0% | 0.0% | 24.2 min |
| What happens to aggregate demand if the government raises income taxes on households, reducing their disposable income? | Macroeconomics | 3.2 | 7 | 100.0% | 0.0% | 9.8 min |
| A student says: “When demand for concert tickets increases, firms will increase their supply, so prices will fall back down.” Using a demand and supply diagram, what actually happens when demand for concert tickets rises? | Microeconomics | 2.1 | 5 | 60.0% | 40.0% | 8.5 min |
| Which of the following is a demand-side effect of supply-side policies? | Macroeconomics | 3.7 | 10 | 90.0% | 10.0% | 5.1 min |
| What do households provide to firms in the circular flow of income? | Introduction to Economics | 1.1 | 3 | 66.7% | 33.3% | 4.3 min |
5. Conclusion
Next steps this week
Spend short, focused sessions on FX diagram practice: break scenarios into single flows, state the direct effect on demand or supply, then draw the shift. Aim for timed drills (1 minute per question) on Unit 4.5 to build speed and accuracy.
Note: This weekly report is automatically generated and may contain mistakes. Always double-check key points before using them for revision.
This report summarises anonymized, aggregate quiz activity and item-level statistics from the specified weekly collection; it does not include or imply any individual student data.