F1.1 Identify and compare exchange rates, and convert foreign currencies to Canadian dollars and vice versa.
Activity 1: A Trip Outside of Canada
Present a scenario to the students by simulating a preparation for a trip outside of Canada. Explain to the students that the destination has not yet been chosen, but that they will do a small survey on the value of the Canadian dollar and its equivalence in foreign currencies to compare the exchange rate between these various countries. Ask students to work in groups. Their task is to choose four different foreign currencies and list them in a table with their exchange rate for a Canadian dollar. In the second column of the table, ask the students to indicate the exchange rate for a Canadian dollar and the equivalence in the four other foreign currencies.
For example, 1 CAD = 0.65 EUR, 1 CAD = 0.80 USD, 1 CAD = 0.60 GBP and 1 CAD = 80 JPY.
Then ask students to estimate the value of 10 CAD in each foreign currency. Ask students how they did the estimation. What benchmarks were used? Did all students use the same strategies? Then ask students to estimate the value of 56 CAD in each foreign currency. Did they use the same strategies for this estimation? Then ask students to verify their estimate by doing the conversion calculation to the foreign currency. When is it necessary to have an exact converted amount, and when is an estimate sufficient?
Then have students do calculations to find the value of larger amounts, which they will indicate in the 3rd column of the chart. For example, how much is 100 CAD, 500 CAD and so on. Have students present their chart to the class and compare it with the currencies chosen by the other groups.
Activity 2: A Gift Purchased Online
Share the following scenario:
Riona is shopping online for a unique gift for her mother. The websites she is browsing are from countries other than Canada. She finds an item for €35 on a website from France. As she continues her search, she comes across an American website where she finds the same item for $39. How much are the two items worth in Canadian dollars? Which of the two websites offers the better deal?
Ask students to solve this problem as a team. Then lead a discussion about the issues of shopping online when prices are in other currencies. Have students research online stores from other countries, look at the currencies, and see if converting them still matches the value or purchase to the original budget in Canadian money.