You’ve seen the first part of this lesson for free. Log in and subscribe to unlock the rest, plus every other lesson, worksheet and checkpoint paper.
See Plans →An exchange rate tells you how much of one currency you get for another. For example, £1 = €1.15 means one pound buys 1.15 euros.
To convert £ → foreign currency: multiply by the rate.
To convert foreign currency → £: divide by the rate.
A bureau de change may charge commission — a fee for exchanging money. This is often built into the rate they offer you. They display two rates:
WE BUY — the rate at which they buy foreign currency from you (when you sell leftover holiday money back).
WE SELL — the rate at which they sell you foreign currency (when you buy holiday money).
You always get the worse deal: when buying holiday money you use the lower sell rate; when selling currency back you use the lower buy rate.
To compare prices in different currencies, convert both to the same currency and then compare. Always use a consistent exchange rate.
A common approach: convert the foreign price into pounds, then compare with the UK price.
Work out each answer and type it in. Click Check to see how you did.
| # | Question | Answer | Result |
|---|---|---|---|
| 1 | £200 at rate £1 = €1.15 → euros | ||
| 2 | €460 ÷ 1.15 → pounds (£) | ||
| 3 | £150 at rate £1 = $1.27 → dollars | ||
| 4 | $254 ÷ 1.27 → pounds (£) | ||
| 5 | £300 at bureau sell rate €1.12/£ → euros | ||
| 6 | £500 at rate £1 = €1.15 → euros | ||
| 7 | €575 ÷ 1.15 → pounds (£) | ||
| 8 | £250 at rate £1 = $1.27 → dollars | ||
| 9 | $381 ÷ 1.27 → pounds (£) | ||
| 10 | £120 at bureau sell rate €1.12/£ → euros |