The Value of a Currency in Relation to Other Currencies (Grade 11 NSC Matric Mathematical Literacy): Flashcards
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Practise the cards
10 cards from this deck
Strong currency definition
Strong currency definition
One unit exchanges for more than one unit of another currency
Weak currency definition
Weak currency definition
One unit exchanges for less than one unit of another currency
Buying power definition
Buying power definition
What you can afford considering prices and income earned locally
How to determine which currency is stronger
How to determine which currency is stronger
Compare ratios; if many units needed for one unit, that's weaker
How to measure true cost across countries
How to measure true cost across countries
As a percentage of local income
When to use selling rate
When to use selling rate
When buying foreign currency from the bank
When to use buying rate
When to use buying rate
When selling foreign currency to the bank
Currency conversion formula
Currency conversion formula
Amount needed = Amount to convert Exchange rate
Why exchange rates don't show the whole story
Why exchange rates don't show the whole story
Must compare prices to local income, not just convert currencies
Stronger currency & local expense relationship
Stronger currency & local expense relationship
Not automatically more expensive; must consider local income levels