Define the term exchange rate.
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Define the term exchange rate.
Exchange rates are used when comparing and converting between different currencies.
True or False?
Exchange rates can be written as ratios.
True.
Exchange rates can be written as ratios.
If you have the exchange rate £1 = $1.25 and want to convert £ into $, do you multiply or divide by 1.25?
If you have the exchange rate £1 = $1.25 and want to convert £ into $, you multiply by 1.25.
True or False?
If £1 = $1.25 then to convert $10 into £ you work out 10÷1.25.
True.
If £1 = $1.25 then to convert $10 into £ you work out 10÷1.25.
Deal 1 says that 8 pies cost $10.
Deal 2 says that 12 pies cost $14.
What is the first step to working out which deal is better?
Deal 1 says that 8 pies cost $10.
Deal 2 says that 12 pies cost $14.
To work out which deal is better, the first step is to work out the cost of 1 pie for each deal.
Deal 1 says that 1 pie costs $1.25.
Deal 2 says that 1 pie costs $1.32.
Which deal is better?
Deal 1 says that 1 pie costs $1.25.
Deal 2 says that 1 pie costs $1.32.
Deal 1 is better because it is cheaper to buy 1 pie.
True or False?
Deal 1 says that 1.2kg of flour costs $1
Deal 2 says that 1.3kg of flour costs $1
Deal 1 is better value for money.
False.
Deal 1 says that 1.2kg of flour costs $1
Deal 2 says that 1.3kg of flour costs $1
Deal 2 is better value for money because you get more flour for the same price.