NSC Tourism Communication & Customer Care: With reference to the exchange r

Question

With reference to the exchange rate table above, identify the strongest currency.

**Answer:**
The strongest currency listed in the exchange rate table is the Euro (€) as it has the highest value when compared to the South African Rand.

---

3.2.1 Give ONE reason why the bank selling rate of the currencies in the table is higher than the bank buying rate.

**Answer:**
The bank needs to make a profit when it sells currencies or foreign exchange (FOREX).

---

3.2.2 In the table above, identify the TWO countries where South Africans will receive the greatest value for their money.

**Answer:**
- Czech Republic (Czech koruna)
- Egypt (Egyptian pound)

---

3.3 Ms Nobuhle Maliti lives in South Africa and wants to visit the United States of America (USA). She has R58 000,00 for the trip.

Her return flight ticket will cost R26 000, the USA visa and travel insurance cost will cost R8 000,00 and the tour package for the USA is R23 100.

3.3.1 Calculate, in rand, the total cost of Ms Maliti's trip to the USA.

**Answer:**
Total cost = Flight ticket + Visa/Insurance + Tour package

Total cost = R26 000 + R8 800 + R23 100 = R57 900

---

3.3.2 Will Ms Nobuhle Maliti have enough money for the trip?

**Answer:**
Yes, she will have remaining funds as her budget of R58 000 exceeds the total cost of R57 900, leaving her with R100 extra.

---

3.3.3 Ms Maliti exchanges R58 000 for USD at the OR Tambo International Airport.

Using the exchange rate table above, calculate the amount of US dollars Ms Maliti received when she exchanged the R58 000.

**Answer:**
Amount in USD = Amount in R / Exchange rate for USD

Amount in USD = R58 000 / 14.11 = USD 4 110.56

---

3.3.4 When Ms Maliti returned to South Africa she had USD 150 left which she exchanged at the OR Tambo International Airport.

Calculate the amount of rand she received.

**Answer:**
Amount in R = Amount in USD x Exchange rate for USD

Amount in R = USD 150 x 14.11 = R2 115.00

With reference to the exchange rate table above, identify the strongest currency - NSC Tourism - Question 3 - 2018 - Paper 1

Worked Solution & Example Answer:With reference to the exchange rate table above, identify the strongest currency - NSC Tourism - Question 3 - 2018 - Paper 1

Identify the strongest currency.

Give ONE reason why the bank selling rate of the currencies in the table is higher than the bank buying rate.

Identify the TWO countries where South Africans will receive the greatest value for their money.

Calculate, in rand, the total cost of Ms Maliti's trip to the USA.

Will Ms Nobuhle Maliti have enough money for the trip?

Calculate the amount of US dollars Ms Maliti received when she exchanged R58 000.

Calculate the amount of rand she received when exchanging USD 150.

Join the NSC students using SimpleStudy...