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FINANCIAL

L I T E R A C Y

MRSTAV

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CHALLENGE ACCEPTED

First person to get up and do 5 push ups and shout “Mr. Stav Is The Best” each time they count

will get $115

$115

^JMD

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CHALLENGE ACCEPTED

First person to get up and do 5 push ups and shout “Mr. Stav Is The Best” each time they count

will get $115

$115

^JMD

JMD = Jamaican Dollars

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CHALLENGE ACCEPTED

Click here for the �CURRENT EXCHANGE RATE

Which means… $1 CAD 🇨🇦 = $116.58 JMD 🇯🇲

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EXCHANGE RATES

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EXCHANGE RATES

Exchange rates are the rate at which one currency can be exchanged for another

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EXCHANGING CURRENCIES

International Currencies have different values compared to Canadian currency
When we convert a currency from one country to another country, we are using EXCHANGE RATES

Important Note: Exchange rates can fluctuate daily

🇯🇲

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EXCHANGING CURRENCIES

What factors do you think contribute to the fluctuations in �exchange rates?

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EXCHANGE RATES

Exchange rates are determined by the supply and demand of a currency in the foreign exchange market
When demand for a currency is high…

its exchange rate will increase

When demand for a currency is low…

its exchange rate will decrease.

Also affected by:

Economic Factors
Political Factors
Interest Rates
Inflation
Government policies.

🇯🇲

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EXCHANGING CURRENCIES

Let’s calculate an exchange rate

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Bram and Natalie are in London, England 🇬🇧 to celebrate their cousin's birthday.
The hotel they are staying at costs �90 British pounds per night.

How many Canadian dollars will it cost them to stay at the hotel for one night?

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(this means that the Canadian dollar is worth LESS than the British Pound)

TRANSLATION:

1 Canadian Dollar = 0.58 British Pound

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To calculate exchange rates, �we can use division

Take the foreign value (90 pounds) and divide by the exchange rate (0.58)

£90 ÷ 0.58 = 155.172

Therefore, the hotel would cost �$155.17 in Canadian Dollars.

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If we only know how many Canadian dollars are equal to 1 British pound, we can use multiplication to determine the exchange rate.

but let’s pretend we only knew it the other way:

1 British Pound = 1.71 Canadian Dollar

In the previous example we knew:

1 Canadian Dollar = 0.58 British Pound

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To calculate exchange rates, �we can use division

Take the foreign value (90 pounds) and multiply it by the Canadian exchange rate per foreign currency (1.71)

£90 x 1.71 = 153.90

Therefore, the hotel would cost �$153.90 in Canadian Dollars.

HOLD UP!

Why are the answers different?

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Why were the answers different?

ROUNDING!

We used 0.58 and 1.71 �but really… the exchange rates have a lot more decimal places

0.58794559…

1.7008377…

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Why were the answers different?

= £90 ÷ 0.58794559

= 153.0753891699

= £90 x 1.7008377

= 153.075393

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If we only know how many Canadian dollars are equal to 1 British pound, we can use multiplication to determine the exchange rate.

Let's use multiplication to solve for the same scenario (The hotel costs 90

British Pounds per night). If we only know the reverse, then we must divide.

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Click to type