chapter 4 financial mathematics. money markets match the country with the currency eur usd gbpinr...

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Chapter 4

Financial mathematics

Money markets

Match the country with the currency

EUR

USD

GBPINR

AUD

CAD

CHF

CNY

MYR

DKK

PLN

JPY

KWD BRL

Is the money market ethical?

When you exchange currency using a trading company, some don’t charge a fee.

Exchange rate1 GDP = 1.18725

Sell rate 1.1263 Buy rate 1.2872

How does it work?

So exchanging currency doesn’t have to cost anything.

Is this true?

Banking

What is interest?

Why do you earn it? Why do you pay it?

Inflation

Inflation is a measure of how prices are rising

Cost in 1980 in the UK: 0.33 GDP

If the inflation rate had been 2.8% since then, what would the price be today?

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During 1980, the rate of inflation in the UK peaked at 21.9%.If that had been the rate since then, how much would a loaf of bread cost today?

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