Foreign Exchange

Riyals for candy…

1. What was a “Buck” worth in this simulation? -One Candy Bar

2. What was a “Riyal” worth? - A fraction of a“Buck.”

3. How could we best express the relationship of “Riyals” to “Bucks”? - Lets look at our chart.

4. How was the value of “Riyals” to “Bucks” determined in round #1? - Supply/demand. - Competition. - Market interaction. -*International exchange rates are determined the same way.

5. What happened to the value of the “Riyal” relative to “Buck” in rounds 2 and 3? - Value decreased = it took more “Riyals” to obtain a“Buck.”

6. Did the “Buck” gain in value? NO, throughout the simulation a “Buck” was worth one candy bar. =

Calculating Foreign Exchange Amount in Foreign Currency = Amount in U.S. Dollars Current Exchange Rate

Current Exchange Rates Child number 2 and 3 were sent to a boarding school in the Philippines …… Its currency is the Philippine Peso. Their Exchange Rate = 44.60 350 Pesos = $7.85 44.60 Did Ms. Duke make a good choice? Current Exchange Rates http://www.exchangerate.com/

Strong Dollar Exports Imports

Weak Dollar Exports Imports

Why is the world upset at China? Why would small countries want a depreciated dollar on the U.S. dollar? Why is the world upset at China?

So where should senior trip be? France? England? How about Sri Lanka! 1 Dollar = 104 Rupees