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