international exchange rates. Ten-fifteen Saudi Arabian Riyals (copies from sheet provided). You may want to appoint one student as the banker to exchange currencies and one student to serve as a tally keeper.). Ask them if what you have distributed is money. . Importers often must obtain the currency of the exporters country to purchase the goods to be imported. .
Indicate to students that the price of the mints is one Classroom Buck. . An exchange rate is the price of one nations currency in terms of another nations currency. . How can we best express the relationship of riyals to bucks? Bag(s) of M Ms, or mints, or similar small, inexpensive candies or equally divisible goods like almonds or peanuts.
Usually, one or more students will quickly try to buy the classroom Buck with their riyals.). Ten-fifteen Classroom Bucks (copies from sheet provided). This interaction determines market prices and thereby allocates scarce goods and services.
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Overview, many international exchanges of goods and services are facilitated by forex, indices des devises the exchange of the currencies of the trading countries. . (Some students may chose to hold onto their Bucks and not buy a mint. . Bag should easily be enough for three classes.). Ask What was a Buck worth in this activity? Lesson Description: This activity provides an opportunity for students to participate in a simulated foreign exchange market. . Foreign exchange markets allocate international currencies. Just as in any market many factors can influence either the supply of, or the demand for, a given currency and this will affect the international exchange rate of the currency. What happened to the value of the riyal relative to the buck in rounds 2 and 3? In the classroom activity, why do you think the value of the riyal decreased relative to the buck? Record the prices paid for Bucks in round two. Given the number of countries, currencies, and trading relationships in the world, this is a complicated process. . Money is anything widely accepted as final payment for goods and services.
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