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GCSE Mathematics · key term
The rate used to convert an amount in one currency into an equivalent amount in another currency.
Used by OCR
Specification 5.02a · Paper 1 (Foundation), Paper 2 (Foundation), Paper 3 (Foundation), Paper 4 (Higher), Paper 5 (Higher), Paper 6 (Higher)
Revise: Simple Direct Proportion and CurrencyAn exchange rate gives a constant multiplicative relationship between two currencies at a stated time.
Write the exchange rate with its direction before calculating. If £1 = €1.18, multiply pounds by 1.18 to get euros and divide euros by 1.18 to get pounds.
Sense-check the direction and size of the answer. More items at the same price per item should cost more, while converting back through the same exchange rate should recover the starting amount.
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