The United Nations recognizes one hundred and eighty world currencies. The relative value of each currency is dictated by a series of factors. It is somewhat of a demand driven market when it comes to currencies. When more people want to put their money in the form of the American dollar, the value of it increases. The inflation rate and current interest rate of a country are the key factors to determine the value relative to other currencies. A country with a low level of inflation and a higher interest rate will attract more people to want to put their currency in that form.

How to Convert Values of Different Currencies? When you travel to a different country, you will need to convert your money to the currency of the country that you are visiting. The first thing you should know is the exchange rate that tells you the difference in the value of the two currencies. To change any currency into another, simply multiply it by the exchange rate. Currency A = Currency B x exchange rate. Example: Sarah is going to Britain from the USA on holiday. She wants to change $500 into British pounds. How many pounds will she get? Answer: One pound = $1.31 USA dollars (at the time of writing). $500 = 500 x 1.31 = £655. Sarah gets £655. Similarly, you can convert any currency into another. All you need to know is the exchange rate. If you are unsure about the exchange rates, you can check in a newspaper, or a faster way is to use the internet. You can find online converters as well, but you should know how to convert them manually as well. These worksheets explain how to convert different currencies into equivalent values using given exchange rates. Activities range from easy to intermediate. Calculator use is up to the instructor.