1. The Role of the International Monetary System Copyright © Texas Education Agency, 2012. All Rights Reserved.

2. 2 “Copyright and Terms of Service” Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2012. All Rights Reserved.

3. 3 Purpose of Assignment SWBAT (Student Will Be Able To) Describe the role of the International Monetary Fund (IMF). Argue for and against floating exchange rates. Argue for and against fixed exchange rates. Calculate foreign exchange rates. Copyright © Texas Education Agency, 2012. All Rights Reserved.

4. 4 Need to Know Terms International Monetary Fund (IMF) Pro Con Exchange Rate Floating Exchange Rate Fixed Exchange Rate Foreign Exchange Rate Calculate Copyright © Texas Education Agency, 2012. All Rights Reserved.

5. 5 Instruction What is the IMF? http://www.youtube.com/watch?v=f1z3cGxSv_ E&list=UUIYhr3JsLYfKkCM7- W5B6DA&index=10&feature=plpp_video http://www.imf.org/external/ Copyright © Texas Education Agency, 2012. All Rights Reserved.

6. 6 Class Discussion 0 After watching the video, what are three key points that stood out to you? 0 Based on the website, what are three pieces of information you found interesting? Copyright © Texas Education Agency, 2012. All Rights Reserved.

7. 7 Instruction Flexible and Fixed Exchange Rates … the Pros and Cons Flexible ProsFlexible Cons Independent monetary policy Low elasticities Promotes economic development Unstable conditions Promotes international trade Adverse effect on economic structure Fixed ProsFixed Cons Promotes international trade Outmoded system Necessary for small nations Discourages foreign investment Removes speculation Not a genuinely fixed system Copyright © Texas Education Agency, 2012. All Rights Reserved.

8. 8 How Exchange rates might affect you… Pick five countries you would like to visit. Determine how much money you would like to take with you (in US dollars). Go to http://www.xe.com/ucc/ and find out how much money you will receive in destination country.http://www.xe.com/ucc/ Amount in US Dollars=________ Country 1=Amount= Country 2=Amount= Country 3=Amount= Country 4=Amount= Country 5=Amount= Copyright © Texas Education Agency, 2012. All Rights Reserved.

9. 9 Sample Pick five countries you would like to visit. Determine how much money you would like to take with you (in US dollars). Go to http://www.xe.com/ucc/ and find out how much money you will receive in destination country.http://www.xe.com/ucc/ Amount in US Dollars=$2000 Country 1=JamaicaAmount=175,039.99 Country 2=TaiwanAmount=59,959.66 Country 3=Great BritainAmount=1,300.56 Country 4=Amount= Country 5=Amount= Copyright © Texas Education Agency, 2012. All Rights Reserved.

10. 10 Review  Can you identify the role of the International Monetary Fund (IMF)?  Can you argue for (pros) and against (cons) fixed exchange rates?  Can you argue for (pros) and against (cons) flexible exchange rates?  Can you calculate foreign exchange rates? Copyright © Texas Education Agency, 2012. All Rights Reserved.

11. 11 Extensions 0 International Monetary Fund (IMF) Visit the International Monetary Fund website and find out; 1) when the USA joined the fund and 2) the date of the last transaction made by the USA. 0 Exchange Rates Visit Currency Converter website we did before, but go to travel expenses calculator. Choose a country from which you just visited and calculate the cost to you based on the method of payment you chose and the date you traveled. Copyright © Texas Education Agency, 2012. All Rights Reserved.

12. 12 Formal Assessment Rubric Copyright © Texas Education Agency, 2012. All Rights Reserved.