IGCSE Business Exchange Rates and Competitiveness

NOF imports dried fruit from France. A kilogram (kg) costs €12.84.

The exchange rate is £1 (Pound sterling) = €1.16 (Euro).

Which one of the following would NOF pay for 1kg of dried fruit in pounds

sterling?

• £1.16

• £11.07

• £12.84

• £14.00

NEXT purchased 5,000 dresses from a Turkish manufacturer at 101.10 New Turkish

Lira (TRY) per dress.

The exchange rate is £1.00 (GBP) = 6.74 (TRY)

(iii) Which one of the following would NEXT pay in £ (GBP) to the Turkish

manufacturer for the 5,000 dresses?

• 5 101

• 5 674

• 33 700

• 75 000

In February 2018 Backyard Shoez imported 50 handbags from Italy. Each handbag

cost them €20.

The exchange rate In February 2018 was €1 = 124.48 Kenyan Shillings (Ks).

(v) How much did Backyard Shoez have to pay in Kenyan Shillings for each

handbag imported in February 2018?

• 2 489.60

• 6 224.00

• 24 896.00

• 124 480.00

Lavender buys 150 kilograms (kgs) of yeast from Germany at a cost of €2 250.

The exchange rate is €1 = 5 Malaysian Ringgits (MYR).

(v) How much does Lavender pay in MYR for the yeast?

• 750

• 2 250

• 11 250

• 337 500

A customer in Germany wishes to buy a Tata Nano car from India. The cost of this

vehicle is 465 000 Indian Rupees (RS). The exchange rate is €1.00 = RS78

What would the German customer pay to the nearest euro for the car?

• €3 621

• €4 650

• €5 962

• €36 270

Yellow’s store in Dubai ordered 2,000 T-shirts at a cost of 6 000 Rupees each.

Currently the exchange rate is 1 Rupee = 0.032 Dirham (AED).

What would the Yellow store in Dubai pay in Dirhams for the 2,000 T-shirts?

• 62 500

• 187 500

• 384 000

• 12 000 000