Understanding Exchange Rate Notation
Part of Exchange Rates · GCSE GCSE Mathematics revision
This deep dive covers Understanding Exchange Rate Notation 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 3 of 8 in this topic. Use this deep dive to connect the idea to the wider topic before moving on to questions and flashcards.
Topic position
Section 3 of 8
Practice
12 questions
Recall
22 flashcards
Understanding Exchange Rate Notation
Direct vs Indirect Quotes
Direct quote (from UK perspective): £1 = $1.25 means 1 pound buys 1.25 dollars
Indirect quote: $1 = £0.80 means 1 dollar buys 0.80 pounds
Common Exchange Rate Formats
| Format | Meaning | Example |
|---|---|---|
| GBP/EUR = 1.15 | 1 pound = 1.15 euros | £100 = €115 |
| EUR/GBP = 0.87 | 1 euro = 0.87 pounds | €100 = £87 |
| USD/GBP = 0.75 | 1 dollar = 0.75 pounds | $100 = £75 |
Basic Currency Conversion
To convert FROM base currency TO quote currency:
Amount in quote currency = Amount in base currency × Exchange rate
Example: £200 to euros at £1 = €1.15
€ amount = £200 × 1.15 = €230
To convert FROM quote currency TO base currency:
Amount in base currency = Amount in quote currency ÷ Exchange rate
Example: €230 to pounds at £1 = €1.15
£ amount = €230 ÷ 1.15 = £200
Keep building this topic
Read this section alongside the surrounding pages in Exchange Rates. That gives you the full topic sequence instead of a single isolated revision point.
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
12 questions on Exchange Rates — practise free
Instant marking, adaptive difficulty, and 22 spaced repetition flashcards. Free until your GCSEs.
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