Exchange Rate and Foreign Exchange Market FOREX Simulation and Online Assignment

Definition/Background

Exchange rates are the value of one currency for the purpose of conversion to another. It is essentially the value of one country’s currency in relation to another country’s currency. Exchange rates often fluctuate over a period of time, which benefits certain groups while harming other groups. The foreign exchange market is a decentralized market that is often referred to as the FOREX.

Objective

Students will exchange one currency for another and determine the impact of fluctuation in the exchange rate over time based on actual, historical exchange rates.

Materials included in product:

1. List of countries for students to research exchange rates.

2. US Dollars (clip art) for students to exchange.

3. Blank foreign currency for students to fill out after exchange of currency.

4. Data sheet for students to complete, which indicates the impact of fluctuations in exchange rates.

5. Exchange rate worksheet as a follow up assignment.

6. Teacher instructions with visual illustration of simulation

7. Instructions for how to fill out foreign currency

8. Debriefing Questions

Topics covered:

1. Foreign Exchange

2. Exchange Rates

3. Net Exports