1. 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

2. 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)

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

4. 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

5. 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.

6. 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

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

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