Quick Questions:1. How could a person buy items with cash

if she or he went to another country?

2. How would a person get the currency

from another country?

Students will learn about exchange rates and how they work.

FAMILY VACATIONUnderstanding Exchange Rates

Exchange Rate Summary

• An exchange rate is simply the cost of one form of currency in another form of currency.

• In other words, you exchange 1 Swiss franc for 80 Japanese yen, you really just purchased a different form of money.

Currency• Currencies allow us to consistently

express the value of an item across borders of countries, oceans, and cultures.

• We need exchange rates because one nation’s currency is not always accepted in another.

How to Figure Exchange Rates

Use the Formula below:

Practice #1: You spent 1,000 Yen Value to U.S. dollar is 108.45. What is the exchange rate (amount spent is US $)?You would divide the two numbers using the formula above.

The exchange rate is: $9.22 U.S. dollar

LATITUDE AND LONGITUDE REFRESHER

Closure

• Give me an acceptable

definition for: exchange

rate.

• The method used to

calculate the value of one

currency compared to

another.