Foreign Exchange Market
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Copyright © Texas Education Agency, 2012. All Rights Reserved.
Purpose of Assignment
SWBAT
Student will be able to…
 Explain the impact of the common
European currency.
 Explain how a foreign exchange market
works.
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Copyright © Texas Education Agency, 2012. All Rights Reserved.
Need to Know Terms
 Impact
 Common
 European
 Currency
 Foreign
Exchange
Market
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Copyright © Texas Education Agency, 2012. All Rights Reserved.
Instruction
 What if the world used a single monetary system? Would that be
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bad? Would that be good?
How would it affect our nation? How would it affect you?
What if that system was the Euro and not the US dollar?
What if the system was the US dollar and not the Euro?
Do you know how much $1 will get you in Euros?
http://www.xe.com/ucc/
Is this current rate good or bad
for the US dollar?
Copyright © Texas Education Agency, 2012. All Rights Reserved.
Instruction
The History and Possible Impact of the Common European Currency
 http://europa.eu/legislation_summaries/e
conomic_and_monetary_affairs/introducin
g_euro_practical_aspects/l25007_en.htm
 http://www.fleur-decoin.com/eurocoins/introduction.asp
Copyright © Texas Education Agency, 2012. All Rights Reserved.
Common Currency Discussion Questions
Let’s say you are given the task of creating a
common currency…
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What would you call it?
Would you have one type or different types?
What would you name it/them?
What material would you use to make it?
What symbols would be represented?
Is it durable?
Is it sustainable?
Is it portable?
Why did you choose this form?
With electronic transfers of funds becoming more and more accepted,
do we still need a currency?
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Copyright © Texas Education Agency, 2012. All Rights Reserved.
Foreign Exchange Market
How it Works
http://www.youtube.com/watch?v=jo4z26THnpo
Copyright © Texas Education Agency, 2012. All Rights Reserved.
Forex Discussion Questions
 Do you understand how the Foreign Exchange
Market works?
 What is the one key piece of information you
need to know to be able to deal in the foreign
exchange market?
 What are some things you learned from the
video?
 What is some information you learned from
reading about the European currency?
 What is some
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Review
 Can you explain the
impact of the
common European
currency on us as a
nation? On you as an
individual?
 Can you explain how
a foreign exchange
market works?
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Extensions
Currency… to standardize or to not standardize.
 Use the activity outlined on slide 6 as an extension activity.
 As a class project, have students develop a common currency the class
can use for doing their “jobs”. Students can get “paid” from this point
forward in the year and then they can buy things at the end of the year.
 Or, as a class project, have students divide into different countries and
each country develop their own currency. Have them decide whose
currency should be the standard by which the others are measured and
determine their own exchange rates.
 Once the standards are set, you an allow for trading of money (Forex)
and give them daily numbers for their exchange rates. At the end of the
course, they can buy items that you’ve provided or had donated, with
their final amounts.
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