Currency around the world

From country to country, prices are measured in different currencies. In Canada, the Canadian Dollar (CAD) is used. In the United States of America, the U.S. Dollar (USD) is used.

Complete the Country and Currency Organizer in your notebook or using the following fillable and printable document for your thoughts.

Use the abbreviations for currencies to complete the table corresponding to each country’s name.

Currency exchange rate

There are certainly more countries in the world than the ones explored in the Minds On section of this activity. Were you able to think of countries that were not displayed? If so, did you determine the currency acronym related to the country?

Exchange rates are variable and are reported on daily by news outlets. Most often in Canadian news reports, the value of the Canadian dollar is compared to the U.S. dollar. The U.S. is our neighbouring country, and we share a strong relationship when it comes to travel and trade.

If you are planning a trip to a different country, you will need to exchange currency. Depending on the type of currency you want to buy and the amount needed, you may have to order it ahead of time. This can be done at a local bank or a currency exchange business. Currency exchange businesses are located in malls and at airports. Always be sure to compare exchange rates, as these may differ slightly from bank to bank or bank to currency exchange businesses.

Calculating currency conversion

A traveler has $300 Canadian dollars (CAD) and would like to convert this to USD. The exchange rate on the day the money will be exchanged is 1 CAD = 0.80 USD. This means that on the exchange day, 1 Canadian dollar would be approximately equal to 80 American cents.

Note: A simple online search may not yield the accurate exchange rate, as it might be reflective of the stock exchange. Accurate currency exchange rates are available on the Bank of Canada’s online currency converter.

How much would the traveler receive in USD using 0.80 as the exchange rate? This example can be solved using two different strategies.

Strategy 1 – Cross multiply

Set up the equation:

$\frac{\$300 \text{CAD}}{1 \text{CAD}}=\frac{x}{0.80 \text{USD}}$

Multiply the numerator on the left by the denominator on the right, and then multiply the numerator on the right by the denominator on the left.

$300\times 0.80=x$

$=\$240$

Therefore, the traveler would receive $240 USD with the current exchange rate.

Strategy 2 – Multiply the decimal tenth

To multiply a decimal tenth by a whole number, numbers with a decimal tenth can be represented as a multiple of 10. Begin by splitting the exchange rate into the decimal tenth form.

$0.8=0.1\times 8$

Then,

$0.1\times 300=30$

Then multiply,

$8\times 30=\$240$

Therefore, the traveler would receive $240 USD with the current exchange rate.

Note: This second method will only work if the exchange rate is in decimal tenth form. If there are hundredths in the question, a further step would be required.

Exchange rate practice problems from CAD

Now, try it for yourself!

If you would like, you can complete the next series of word problems using TVO Mathify. You can also use your notebook or the following fillable worksheet.

Using either of the two strategies or a multiplication strategy that you are familiar with, calculate the following currencies using the exchange rates provided.

1. A traveler has $1,000 CAD and would like to convert this amount into Indian Rupees (the currency of India). The exchange rate is 1 CAD = 87 Indian Rupees. What would they receive in Indian Rupees?
2. A traveler has $500 CAD and would like to convert this amount to USD (the currency of the United States of America). The exchange rate is 1 CAD = 0.75 USD. What would they receive in American dollars?
3. A traveler has $700 CAD and would like to convert this amount into Thai Baht (the currency of Thailand). The exchange rate is 1 CAD = 23 Thai Baht. What would they receive in Thai Baht?
4. Once you have calculated the above currencies using the sample conversion rates provided, check the Bank of Canada’s rate for each currency. How does it compare if the traveler wanted to exchange $1,000 CAD to Indian Rupees, USD, and Thai Baht?

Further currency exchange calculations

Now that you’ve had the opportunity to determine the conversion of Canadian dollars to various currencies, try calculating in reverse to determine how much you will receive in Canadian dollars.

If you would like, you can complete the next series of word problems using TVO Mathify. You can also use your notebook or the following fillable and printable document.

Exchange rate practice problems to CAD

Using either of the two strategies or a multiplication strategy that you are familiar with, calculate the following currencies using the exchange rates provided.

1. A traveler has $224 Jamaican Dollars. The exchange rate is 1 CAD = 112 Jamaican Dollars. How much do they receive in Canadian dollars?
2. A traveler has $680 American dollars. The exchange rate is 1 CAD = 0.34 USD. How much do they receive in Canadian dollars?
3. A traveler has €1,200 Euro (European currency). Determine today’s exchange rate by looking it up online. How much do they receive in Canadian dollars?
4. A traveler has $1,000.00 Canadian dollars. Determine today’s exchange rate by looking it up online. How many Euro will they receive upon conversion?

Reflection

As you read the following descriptions, select the one that best describes your current understanding of the learning in this activity. Press the corresponding button once you have made your choice.

Now, expand on your ideas by recording your thoughts using a voice recorder, speech-to-text, or writing tool.

When you review your notes on this learning activity later, reflect on whether you would select a different description based on your further review of the material in this learning activity.

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