1. Foreign Exchange

2. Riyals for candy…

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

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

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

6. 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.

7. 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.”

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

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

10. 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

11. Strong Dollar
Exports
Imports

12. Weak Dollar
Exports
Imports

13. 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?

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