GCSE Maths Practice: currency-conversion

Currency Conversion in GCSE Maths

Currency conversion is an important GCSE Maths topic because it connects ratios and proportional reasoning to everyday financial situations. Whether you are travelling abroad, shopping online, or comparing prices between countries, being able to convert currencies accurately is a useful real-world skill.

What Does an Exchange Rate Mean?

An exchange rate tells you how much one unit of a currency is worth in another currency. For example, if the exchange rate is £1 = €1.10, this means that every pound can be exchanged for one euro and ten cents. Exchange rates are usually given directly in GCSE questions, so there is no need to memorise them.

Choosing the Correct Operation

One of the most important skills in currency conversion is deciding whether to multiply or divide.

• If the exchange rate is greater than 1, converting from pounds to euros will make the amount larger.
• This means you should multiply the amount in pounds by the exchange rate.

Before calculating, it is good practice to think: Should my answer be bigger or smaller?

Worked Example (Different Numbers)

Suppose the exchange rate is £1 = €1.25.

How many euros is £32?

Step 1: Write the calculation: 32 × 1.25

Step 2: Multiply: 32 × 1.25 = 40

Step 3: Add the currency symbol → €40.00

Another Example

If £1 = €0.85 and someone exchanges £60:

60 × 0.85 = 51 → €51.00

Common Mistakes Students Make

• Dividing instead of multiplying: This often happens when students rush and forget the direction of the conversion.
• Incorrect rounding: Money values should usually be given to two decimal places.
• Missing the currency symbol: GCSE mark schemes expect the correct symbol.
• Not estimating first: Estimation helps catch calculation errors.

Real-Life Context

Currency conversion appears in many everyday situations, such as:

• Budgeting spending money for a holiday
• Comparing prices on international websites
• Understanding prices shown in airports and banks
• Managing travel expenses for school trips

Frequently Asked Questions

Will GCSE exams include complicated exchange rates?
At Foundation level, exchange rates are usually simple decimals such as 1.1 or 0.8.

Do I need to memorise any rates?
No. The exchange rate will always be provided in the question.

Should I always round my answer?
Yes. When dealing with money, answers should normally be written to two decimal places.

Study Tip

Always estimate before calculating. For example, rounding the exchange rate to 1 helps you quickly check whether your final answer is reasonable.