Exchange Rates 1
1.1 Mr Gwabeni intends to visit his friend in the United States. He has R30 000 to spend
while he is there. The exchange rate on that date is 1 dollar ($) = R13,97
1.1.1 Explain the term exchange rates within the context above. (2)
1.1.2 State whether the rand is stronger or weaker than the dollar. (2)
1.1.3 Calculate how much his spending money is worth in dollars. (2)
1.2 TABLE 1 below indicates the exchange rate between South Africa (SA) and some other
high-ranking countries.
TABLE 1: EXCHANGE RATE BETWEEN SA AND SOME SIX COUNTRIES
Exchange rate of SA and other Countries October 02, 2017
09:00
CURRENCY UNITS PER ZAR ZAR PER UNIT
US Dollar 0,073482 13,608770
European Euro 0,062562 15,984219
British Pound 0,055187 18,120130
Indian Rupee 4,811223 0,207847
Australian Dollar 0,094072 10,630196
Canadian Dollar 0,091895 10,881951
[Source: [Link]]
Use the information above to answer the questions that follow.
1.2.1 On which date was the exchange rate recorded? (2)
1.2.2 Determine the amount of South African rands (ZAR) that are equivalent to
1US Dollar. (2)
1.2.3 Name the currency used in Australia. (2)
1.2.4 Express 10,881951 as a whole number. (2)
1.3 Consider the exchange rates table provided below:
1.3.1 Explain the term exchange rate. (2)
1.3.2 Identify the name of the currency used in Botswana. (2)
1.3.3 Write down the ratio of the US Dollars to the Rand. (2)
1.3.4 How many Angolan Kwanza will be received if R3000,00 is exchanged? (2)
Marking Guidelines
1.1.1 It is the price for which the currency of one country can be exchanged for another
country’s currency
1.1.2 Rand is Weaker
Dollar is Stronge
1.1.3 R30 000 ÷ R13,97
= R2 147,46
1.2.1 October 02, 2017
1.2.2 13,608770
1.2.3 Australian Dollar
1.2.4 11
1.3.1 The value of one country’s currency compared to the other country’s currency
1.3.2 Pula
1.3.3 $1 : R12,8765
1.3.4 Angolan Kwanza = R3 000 × 13,09 Kz
= 39 270Kz
Exchange Rates 2
1.1 The exchange rate between South Africa and Great Britain on 07 June 2021 is
shown below:
Use the information above to answer the questions that follow:
1.1.1 Explain what the term exchange rate means. (2)
1.1.2 State if the rand is weaker or stronger against the British pound. (2)
1.2 A developer, Mr. Zuma, has to install solar geysers into 1 250 houses (one
solar geyser per house) that he is building in a new housing development. He
asks solar geyser manufacturers in TWO countries for a quote.
TABLE 2: EXCHANGE RATES OF CURRENCIES
Country Currency Price per Exchange rate
geyser
India Indian Rupee 15 000 INR 1 ZAR = 0,20 INR
(INR)
China Chinese Yuan 1 893,33 CNY 1 CNY = ZAR 2,02
(CNY)
Source: [Link]
NB: ZAR = South-African Rand
Use the information in TABLE 2 to answer the following questions:
1.2.1 Identify the country with the strongest currency. (2)
1.2.2 Calculate the total amount (in Rands) that the developer will pay if he
buys the geysers from India. (4)
1.3 Rafael Nadal raises a mammoth amount of €14 million for coronavirus victims
in Spain which was equivalent to R292 318 460 in South Africa. PPE –
Personal protective equipment Use the table below and answer the questions
that follow.
TABLE 3: CURRENCY EXCHANGE TABLE
Use the information above to answer the questions that follow.
1.3.1 Determine which currency is the weakest according to the table? (2)
1.3.2 Write down R292 318 460 in words. (2)
1.3.3 Explain why there are more than two digits after the decimal comma. (2)
1.3.4 Show, by means of calculations that €14 million is indeed equal
R292 318 460. (3)
1.3.5 Rafael Nadal request that the donation money be used for PPE’s, to
staff payment, purchase ventilators in the ratio 1:2:4, respectively.
Determine the amount in rand that needs to be spent on ventilators in
Spain. (3)
Marking Guidelines
1.1.1 The value of one currency relative to the value of another currency
1.1.2 Weaker
1.2.1 Chinese Yuan
1.2.2 Cost / Koste = 15 000 INR × 1250 House
= 18 750 000 INR
= 18 750 000 ÷ 0,20
= R 93 750 000
OR
For 1 geyser: 1 ZAR = 0,20 INR
15 000
=¿R75 000
0,2M
R75 000 × 1 250 = R93 750 000
1.3.1 Yen
1.3.2 Two hundred and ninety-two million three hundred and eighteen thousand four
hundred and sixty rand
1.3.3 To have a more accurate value, especially when it is a large amount of money
1.3.4 1€ = R20,87989
?€ = R292 318 460
R 292 318 460
?€ =
R 20,87989
= €14 000 000
1.3.5 Amount to be spent on ventilators
4
R292 318 460 ×
7
= R167 039 120
Exchange Rates 3: Informal Test
1.1 Masakhane received a donation of £500 (British Pounds) GBP from a non-
profit organisation following their request for assistance. TABLE 6 shows the
bank exchange rates and bank charges at the time of exchange.
TABLE 6: EXCHANGE RATES AND BANK CHARGES
Use TABLE 6 above to answer the questions that follow.
1.1.1 Identify the exchange rate the bank will use to exchange Masakhane’s (2)
£500.
1.1.2 Calculate the Rand amount Masakhane will receive from £500. (5)
1.2 Andile received a donation from his brother who works in Rwanda. The
donation was 745 614,04 Rwanda Francs (RWF). The bank deducted 10% for
bank charges. Andile states that he will receive R12 750. Verify the statement
with the necessary calculations.
Use the exchange rate R 0,019 = 1 RWF (6)
[13]
Marking Guidelines
1.1.1 GBP £1 = R17,268
1.1.2 GBP £1 = R17,268
£500 = R?
R500 × 17,268
= R8 634
3
Bank charges = x 8 634
100
= R259,02
Masakhane community will receive = 8 654-259,02
= R8 374,98
1.2 R0,019 = 1 RWF
R? = 745 614,04 RWF
R? = 0,019 × 745 614,04
= R14 166,66676
10
Bank charges = 14166,66676 ×
100
= R1 416,666676
Andile received = R14 166,66676 – 1 416,66676
= R12 750
Statement is valid.