Currency conversion reasoning: Practice 1

10 original teaching questions with answers and explanations.

Instructions for this set

Use the fictional rates supplied in each question. Ignore unstated charges. Apply fees in the stated currency and order; these are not live exchange quotes.

Feedback mode has no time limit or negative marking. The optional timed challenge allows 15 minutes and uses the scoring shown on its rules screen. Those settings are not official assessment rules.

Practise with feedback Optional timed challenge

  1. 1. At US$1 = GBP 0.80, how many pounds are received for US$450 with no fee?
    1. GBP 320
    2. GBP 360
    3. GBP 450
    4. GBP 562.50

    Reference: q-abce3f68-73 · Report this question

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    Answer: B. GBP 360

    Multiply dollars by pounds per dollar: 450 times 0.80 = GBP 360.
  2. 2. At GBP 1 = US$1.25, how many dollars are needed to buy GBP 320 with no fee?
    1. US$256
    2. US$350
    3. US$400
    4. US$420

    Reference: q-50193ce7-76 · Report this question

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    Answer: C. US$400

    Each pound costs US$1.25. Therefore 320 times 1.25 = US$400.
  3. 3. At EUR 1 = US$1.10, how many euros does US$660 buy with no fee?
    1. EUR 660
    2. EUR 726
    3. EUR 550
    4. EUR 600

    Reference: q-33152468-64 · Report this question

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    Answer: D. EUR 600

    Reverse the quoted direction: euros = 660/1.10 = EUR 600.
  4. 4. A transfer converts A$800 at A$1 = NZ$1.08. A fixed NZ$12 fee is deducted after conversion. What arrives?
    1. NZ$852
    2. NZ$864
    3. NZ$876
    4. NZ$788

    Reference: q-89e0ec1a-106 · Report this question

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    Answer: A. NZ$852

    Conversion gives 800 times 1.08 = NZ$864. Deduct the receiving-currency fee of NZ$12 to obtain NZ$852.
  5. 5. A C$15 fee is deducted from C$1,000 before converting the remainder at C$1 = US$0.75. What is received?
    1. US$735.00
    2. US$738.75
    3. US$750.00
    4. US$761.25

    Reference: q-6672803-104 · Report this question

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    Answer: B. US$738.75

    Convert C$985 after the fee. 985 times 0.75 = US$738.75.
  6. 6. US$900 is converted at US$1 = EUR 0.90. A 2% fee on the converted euros is then deducted. What is received?
    1. EUR 826.20
    2. EUR 792.00
    3. EUR 793.80
    4. EUR 810.00

    Reference: q-fb3fd8b5-108 · Report this question

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    Answer: C. EUR 793.80

    Converted amount is EUR 810. Keep 98% after the fee: 810 times 0.98 = EUR 793.80.
  7. 7. At GBP 1 = EUR 1.20 and EUR 1 = US$1.10, what does GBP 100 convert to, without fees?
    1. US$110
    2. US$120
    3. US$130
    4. US$132

    Reference: q-ce67f06-85 · Report this question

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    Answer: D. US$132

    Convert through euros: 100 times 1.20 times 1.10 = US$132.
  8. 8. Offer A converts US$500 at EUR 0.92 per dollar with a EUR 10 fee. Offer B uses EUR 0.90 with no fee. Which gives more euros?
    1. They give the same amount
    2. A by EUR 20
    3. A by EUR 10
    4. B by EUR 10

    Reference: q-2e0cf497-125 · Report this question

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    Answer: A. They give the same amount

    A gives 500 times 0.92 minus 10 = EUR 450. B gives 500 times 0.90 = EUR 450. The net amounts match.
  9. 9. A supplier wants EUR 720. At US$1 = EUR 0.90, how many US dollars are required, before any fee?
    1. US$720
    2. US$800
    3. US$810
    4. US$648

    Reference: q-211eac89-96 · Report this question

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    Answer: B. US$800

    Divide the required euros by euros per dollar: 720/0.90 = US$800.
  10. 10. A fictional rate changes from EUR 0.80 to EUR 0.84 per US dollar. How many additional euros does a US$1,000 transfer receive at the new rate, with no fees?
    1. EUR 80
    2. EUR 4
    3. EUR 40
    4. EUR 50

    Reference: q-1fe4ef9a-156 · Report this question

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    Answer: C. EUR 40

    The difference is EUR 0.04 per dollar. For US$1,000, that gives 1,000 times 0.04 = EUR 40 extra.

Review your method

Return to the currency conversion reasoning lesson and identify the reasoning step behind each mistake before repeating the set.

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