Learning Objective: Today I will be able to compare exchange rates and the currency standards by searching currency rates online Agenda: Learning Objective Lecture: Ch. 18 Exchange Rates & Currency Standards. Truthloader: Gold Standard, Fiat, vs. Bitcoins. Exchanging Rates online Vocab./Study Guide No Exit Slip

Title Notes: Ch. 18.4 Exchange Rates and Currency Standards Foreign Exchange Global market in which currencies are exchanged. Ex. Dollars for pesos, vice versa Ex. Dollars for euros, vice versa Exchange rates Dollar price of purchasing a unit of another currency Ex. In 2000, $1 (US dollars for $10 (Mexican pesos)

Determinations of Exchange Rate Change Supply & Demand Currency depreciation $ price of a € increases Currency appreciation $ price of a € decreases

Buying Currency Speculators Arbitrageurs Buy low, sell high Like a game Arbitrageurs Take advantage of differences in exchange rates. Ex. If 1€ is $1.10 in New York, but in Paris it is $1.11. $10, 000, 000 in NY OR $10, 090, 909 in Paris

Truthloader: Gold Standard vs. Fiat vs. Bitcoin What was the most common currency standard? How much gold was $1 considered? Why did the American dollar changed standards? What is the problem with the fiat standard? Determine which currency standard is most beneficial to the US. https://www.youtube.com/watch?v=a7GJb0kufQI http://www.usdebtclock.org/

Currency Standards Gold Standard Fiat Standard Silver Standard Bitcoin Value of dollar based on gold fixed exchange rate Fiat Standard Value of dollar given by gov. Flexible exchange rate Silver Standard Value of dollar based on silver Ex. Pound currency= 1 lbs. of silver Bitcoin Virtual money

Exchange Rates How much is $1 (American dollars) worth in Mexico? France? Australia? Sri Lanka?

Exit Slip Which currency and currency standard do you prefer? Why, explain your preference?