Grade 10 Essential MathLesson 6: Currency Exchange

Canadian Dollar Other Foreign Currencies

Can you list some foreign currencies?

Why is it important to convert Canadian currencies to other currencies and vice versa?

Example 1: Philippine currency

$1 Canadian = 42.50 Pesos

How much would $100 be in this currency?

Example 2: US Dollar (USD)

1 U.S. dollar = 1.02609988 Canadian dollars

a) Is the Canadian dollar worth more or less than the US dollar?

b) How much is $100 CAD in USD?

Selling Rate vs. Buying Rate

International trade requires an organized system for exchanging money. The exchange rate between two currencies is used.

The exchange rate is either the bank selling or the bank buying rate.

You: with Canadian currency

You: with US dollars

Bank: has both Canadian and foreign currencies

Bank BUYS the foreign currency

Bank SELLS the foreign currency

When trying to decide whether to use the buying or selling rate....Always think about what the bank is doing with the foreign currency. Is the bank buying or selling the foreign currency?

You are planning to go on a trip to Australia so you change $1500 Canadian dollars to Australian. You realize that you don't have a passport so you won't be allowed to go, so you convert the Australian dollars back to Canadian. How much money do you lose from the exchanges?

$1312.68

$1328.30

$171.70

1 CAD CAD

Do the BUILD YOUR SKILLS Questions

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