This exam tips covers Exchange Rate Tips within Exchange Rates for GCSE Mathematics. Revise Exchange Rates in Ratio & Proportion for GCSE Mathematics with 12 exam-style questions and 22 flashcards. Use this page as part of a wider topic revision path rather than treating it as an isolated fact. It is section 6 of 8 in this topic. Treat this as a marking guide for what examiners are looking for, not just a fact list.
Exchange Rate Tips
- Check the direction: Make sure you're multiplying or dividing correctly
- Commission timing: Some apply commission to original amount, others to converted amount
- Round sensibly: Currency amounts usually round to 2 decimal places
- Compare total cost: Include all fees when comparing exchange services
- Inverse rates: If given EUR/GBP = 0.87, then GBP/EUR = 1 ÷ 0.87 = 1.15
- Multi-step conversions: GBP → USD → JPY requires two exchange rates
- Real-world context: Consider whether rates seem reasonable (£1 ≈ $1.20-1.30)
Practice questions for Exchange Rates
The exchange rate is £1 = €1.15. How many euros would you get for £100?
The exchange rate is £1 = $1.25. A jacket costs £89 in the UK and $105 in the USA. In which country is the jacket cheaper? Show your working.
Quick recall flashcards
What is a fixed fee in currency exchange?
A set amount charged regardless of the transaction size (e.g., £5 per transaction).
What is an exchange rate?
The rate at which one currency can be exchanged for another currency.