Reading an exchange-rate quote
Reading an exchange-rate quote
An exchange rate is the price of one currency in terms of another. In the quote 1 GBP=1.25 USD1\,\mathrm{GBP} = 1.25\,\mathrm{USD}1GBP=1.25USD, one pound buys 1.25 US dollars, so the pound is the currency being priced.
Step-by-step lessons covering OCR A Level Economics Exchange rates for A Level Economics. Each lesson works through exam-style questions in Component 01, Component 02 and Component 03 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.