1. Name: _____________
Why Trade Money?
Activity One
Directions:
1. Indicate the quantity of each item that you want to buy.
2. Multiply the quantity by the price and enter the total amount that would be spent in the foreign currency.
3. Using the exchange rate at the currency exchange bank, convert to the amount in U.S. dollars.
4. Calculate the total U.S. dollar cost of your lunch.
Example:
• Lindsey purchases 3 Tijuana Tacos.
• The price is 15.30 pesos, so the amount she would spend in pesos would be 45.90
(15.30 x 3 = 45.90).
• The exchange rate is 1 U.S. dollar equals 12.7 pesos (1 USD = 12.7 MXN).
• The total amount of U.S. dollars required to purchase the three tacos would be 45.90 pesos divided by 12.7 pesos,
which equals 3.61 U.S. dollars.
Item Quantity Price Total Amount in Amount in U.S.
Foreign Currency dollars
Down Under Cheese 4.5 Australian dollars
Hoppers
Great Barrier Reef Finger 2.70 Australian dollars
Foods
Outback Pot Stickers 3.60 Australian dollars
Sydney Spicy Shrimp 1.80 Australian dollars
Tijuana Taco 15.30 pesos
Chihuahua Enchilada 18.36 pesos
Burrito Yucatan 22.44 pesos
Fajitas de Francisco 35.70 pesos
Nachos del Zapatistas 20.40 pesos
Refried Beans de Hidalgo 8.16 pesos
French Onion Soup 1.80 euros
Greek Salad 2.52 euros
Black Forest Dark 2.25 euros
Chocolate Cake
Italian Spaghetti and 2.70 euros
Meatballs
Spanish Flan (dessert) 1.98 euros
Belgian Chocolates 3.60 euros
Stonehenge Stew 2.10 pounds
London Lamb Chops 4.23 pounds
Welsh Watercress Salad 3.4 pounds
Scottish Sheep Sizzlers 3.4 pounds
English Channel Tea and 4.21 pounds
Crumpets
Freezing Cold Coffee 40.23 rubles
Moscow Mango Juice 50.63 rubles
Masterpiece
Siberia Strawberry 54.32 rubles
Smoothie
St. Petersburg Soda 43.54 rubles
TOTAL COST OF LUNCH IN U.S. DOLLARS: _______________

2. Name: ___________________
Why Trade Money?
Activity Two
Directions: After the activity on Foreign Exchange, review the key points of the lesson by answering
the questions below.
1. What is foreign exchange?
2. What is exchange rate?
3. Why does international trade require a system for exchanging
currencies between nations?
4. Why can’t U.S. citizens use their U.S. dollars to pay for goods and
services in other countries?
5. In a group of U.S. citizens wanted to pay for a tour in Berlin, Germany,
what must the citizens do to their U.S. dollars?
6. If 1 U.S. dollar equals 12.7 Mexican pesos and 1 U.S. dollar equals .74
European Union euros, what is the exchange rate between Mexican
pesos and European Union euros?