Exchange Rate Teacher Resources
As international travel becomes more popular and businesses become more global understanding factors that influence international economics, especially the currency exchange rate, becomes increasingly more important. Activities that focus on the exchange rate, the price of one nation’s currency when valued against another’s, are a great way to prepare 21st century learners for the world they will inherit.
You might introduce a study of exchange rates with a lesson about the types of coins and bills used in different countries. Follow up with a worksheet that asks kids to use the exchange rate to convert U.S. dollars to other currencies and foreign currencies into U.S. dollars. Bring global economics into the classroom with lessons that asks potential travelers to use exchange rates to compare the cost of bus fares in cities around the world or compare prices in Austria, China, and India.
With an understanding of exchange rates, young economists can examine how money affects global commerce and gain an understanding of the Impossible Trinity, the relationships among exchange rates, interests rates, and money flow.
A great way to end a study of the exchange rate is with this amusing activity that asks students to consider why we even need money.