Foreign Exchange Market Copyright © Texas Education Agency, All Rights Reserved.

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3 Purpose of Assignment SWBAT Student will be able to… Explain the impact of the common European currency. Explain how a foreign exchange market works. Copyright © Texas Education Agency, All Rights Reserved.

4 Need to Know Terms Impact Common European Currency Foreign Exchange Market Copyright © Texas Education Agency, All Rights Reserved.

Instruction What if the world used a single monetary system? Would that be bad? Would that be good? How would it affect our nation? How would it affect you? What if that system was the Euro and not the US dollar? What if the system was the US dollar and not the Euro? Do you know how much $1 will get you in Euros? Is this current rate good or bad for the US dollar? Copyright © Texas Education Agency, All Rights Reserved.

Instruction The History and Possible Impact of the Common European Currency conomic_and_monetary_affairs/introducin g_euro_practical_aspects/l25007_en.htm conomic_and_monetary_affairs/introducin g_euro_practical_aspects/l25007_en.htm coin.com/eurocoins/introduction.asp coin.com/eurocoins/introduction.asp Copyright © Texas Education Agency, All Rights Reserved.

7 Common Currency Discussion Questions Let’s say you are given the task of creating a common currency… What would you call it? Would you have one type or different types? What would you name it/them? What material would you use to make it? What symbols would be represented? Is it durable? Is it sustainable? Is it portable? Why did you choose this form? With electronic transfers of funds becoming more and more accepted, do we still need a currency? Copyright © Texas Education Agency, All Rights Reserved.

Foreign Exchange Market How it Works Copyright © Texas Education Agency, All Rights Reserved.

9 Forex Discussion Questions Do you understand how the Foreign Exchange Market works? What is the one key piece of information you need to know to be able to deal in the foreign exchange market? What are some things you learned from the video? What is some information you learned from reading about the European currency? What is some Copyright © Texas Education Agency, All Rights Reserved.

10 Review Can you explain the impact of the common European currency on us as a nation? On you as an individual? Can you explain how a foreign exchange market works? Copyright © Texas Education Agency, All Rights Reserved.

11 Extensions Currency… to standardize or to not standardize. Use the activity outlined on slide 6 as an extension activity. As a class project, have students develop a common currency the class can use for doing their “jobs”. Students can get “paid” from this point forward in the year and then they can buy things at the end of the year. Or, as a class project, have students divide into different countries and each country develop their own currency. Have them decide whose currency should be the standard by which the others are measured and determine their own exchange rates. Once the standards are set, you an allow for trading of money (Forex) and give them daily numbers for their exchange rates. At the end of the course, they can buy items that you’ve provided or had donated, with their final amounts. Copyright © Texas Education Agency, All Rights Reserved.