- Definition
An exchange rate tells you how much one country's money is worth compared to another country's money. For example, it shows how many US dollars you would get for your Canadian dollars.
If the exchange rate is 1.3 for US dollars to Canadian dollars, your $10 US would be worth $13 Canadian.
How to teach this in 30 seconds
Try this analogy: An exchange rate is like the trading rule for how many of your game cards you need to swap for one of your friend's different cards.
Ask your child: If you had 10 Canadian dollars, how many US dollars might you get?
Common mix-up: Kids might think $1 in Canada is the same as $1 in the US. The exchange rate shows that the value of money changes depending on the country.
Examples
- When you travel, you exchange your home currency for the local currency at the current rate.
- Buying something online from another country often involves converting the price using an exchange rate.
exchange rate is a term used in Ontario’s Kindergarten to Grade 8 curriculum.
Where this shows up
The descriptions on this page are SmartStudy’s own original, plain-language writing — not the Ministry’s wording. They are aligned to the Ontario Curriculum, © King’s Printer for Ontario. For the Ministry’s official wording, see the source link below. SmartStudy is an independent service and is not affiliated with, endorsed by, or sponsored by the Government of Ontario or the Ministry of Education. Ontario Curriculum and Resources ↗
