Chapter-4 (Currency And Exchange Rate) Important Questions

Currency and Exchange Rate: Important Questions

Mathematics • Grade 10 • Currency and Exchange Rate

A. Theory

2 marks1. Define exchange rate. Who declares it in Nepal?

The value of one country's currency in terms of another's is the exchange rate. It is declared by Nepal Rastra Bank.

2 marks2. Differentiate buying rate and selling rate.

Buying rate: rate at which a bank buys foreign currency from the public. Selling rate: rate at which it sells foreign currency. Selling rate is higher, which gives the bank its profit.

2 marks3. Which rate is used to change (a) dollars into rupees? (b) rupees into dollars?

(a) Buying rate (b) Selling rate

2 marks4. What is the exchange rate between Nepal and India?

It is fixed: IC 100 = NRs. 160.

B. Numerical

3 marks5. Rs. 85,500 into dollars at $1 = Rs. 126.35; and $3,000 into rupees.

85,500 ÷ 126.35 = $676.69; 3,000 × 126.35 = Rs. 3,79,050

3 marks6. Difference between buying and selling price of £500 (150.94 and 151.65).

75,825 − 75,420 = Rs. 405

4 marks7. Convert 1 Canadian Dollar into Japanese Yen (CAD buying 98.08, 10 Yen selling 9.37).

10 × 98.08 ÷ 9.37 = 104.67 Yen

4 marks8. $500 = £390 and £50 = Rs. 7,547. Dollars for Rs. 10,308?

Chain rule: x = 500 × 50 × 10,308 ÷ (390 × 7,547) = $87.55

4 marks9. Rs. 12,40,000 exchanged at $1 = Rs. 124. NPR inflates 10% a week later. Profit or loss?

$10,000; new rate 136.40; Rs. 13,64,000. Profit = Rs. 1,24,000

4 marks10. Rs. 7,20,000 exchanged at 1 Baht = Rs. 3.60. NPR deflates 5%, he changes back. Profit or loss?

2,00,000 Baht; new rate 3.42; Rs. 6,84,000. Loss = Rs. 36,000

5 marks11. Nepali buys a TV for 10,000 Dirham (1 Dirham = Rs. 34.50), pays 20% custom and 13% VAT. Break-even price?

3,45,000 + 20% = 4,14,000; + 13% VAT = Rs. 4,67,820

5 marks12. 900 shawls at Rs. 4,000, 5% export tax, 20% profit, €1 = Rs. 130. Selling price in Euro?

CP = 37,80,000; SP = 45,36,000 ÷ 130 = €34,892.30

5 marks13. 500 shawls at Rs. 3,500, 5% export tax, A$30 transport, sold at A$80 each (A$1 = Rs. 88.50). Profit %?

CP = 18,37,500 + 2,655 = 18,40,155; SP = 35,40,000. Profit = 92.37%

3 marks14. If $176 = £100 and £1 = Rs. 151, find Rs. for $132.

132 × 100 ÷ 176 = £75; Rs. 11,325

3 marks15. IC 100 = Rs. 160 and $1 = Rs. 120. Dollars equal to IC 7,500?

7,500 × 1.6 = 12,000; ÷ 120 = $100

Currency and Exchange Rate • Grade 10 Mathematics