GCSE Maths Practice: currency-conversion

Question 8 of 10

Use the exchange rate to decide which option correctly converts pounds into euros.

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\( \begin{array}{l} \text{£1 = €1.10} \\ \text{Which option shows the correct number of euros for £100?} \end{array} \)

Select all correct options:

Estimate first to eliminate options that are clearly too high or too low.

Currency Conversion and Proportion

Currency conversion is a key Foundation GCSE Maths topic that links ratios, multiplication, and real-life financial understanding. You are often given an exchange rate and asked to calculate or identify the correct amount in another currency. These questions test both your calculation skills and your ability to reason sensibly about money.

Understanding the Exchange Rate

An exchange rate compares two currencies. For example, if £1 = €1.10, this means that one pound is worth one euro and ten cents. Exchange rates tell you how much the value changes when converting between currencies.

In GCSE questions, exchange rates are always provided, so your task is to apply them correctly rather than memorise them.

Deciding What to Do

Before doing any calculation, it is important to think logically about the size of the answer.

  • If the exchange rate is greater than 1, the value in euros will be greater than the value in pounds.
  • This tells you that multiplication is needed.

This quick check helps you avoid common mistakes, especially in multiple-choice questions.

Worked Example (Different Numbers)

Suppose the exchange rate is £1 = €1.15.

Which of the following is the correct value of £80 in euros?

Step 1: Estimate first: £80 is close to £100, so the euro value should be just over €90.

Step 2: Multiply: 80 × 1.15 = 92

Step 3: Write the answer as money → €92.00

Another Example

If £1 = €0.95 and someone exchanges £50:

50 × 0.95 = 47.5 → €47.50

Common Mistakes to Watch Out For

  • Choosing an option without calculating: Always check with maths, not guessing.
  • Dividing instead of multiplying: This often leads to answers that are too small.
  • Ignoring estimation: Estimating helps remove clearly incorrect options.
  • Forgetting currency symbols: Correct notation matters in exams.

Why Multiple-Choice Currency Questions Appear in Exams

Multiple-choice questions test understanding as well as calculation. You are expected to:

  • Recognise whether values should increase or decrease
  • Spot unreasonable answers quickly
  • Apply proportional reasoning efficiently

Frequently Asked Questions

Can I use estimation alone?
Estimation helps, but you should still calculate to be confident.

Do Foundation questions ever use division?
Yes, but only when converting from a larger currency value to a smaller one.

Should answers always be written to two decimal places?
Yes, unless the value is a whole number of euros.

Study Tip

In multiple-choice questions, eliminate impossible options first using estimation, then confirm the correct one with a calculation.

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