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Currency Conversion Questions - Numerical Reasoning Skills - JobTestPrep
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Learn how not to fear currency conversion questions with JobTestPrep's tips and guidelines.
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Secured Payment Usually, currency currency exchange data is presented in tables. The first type of currency table simp simply specifies oth other er curr curr encies encies with respect to one currency whose value is assumed 1 assumed 1.. In this case case the the tab table's title le's title would be : "Currency exchange rates per "x". Other, similar tables would have the following form:
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In the above table, looking at the first value: 1 AUD is worth 0.651 GBP, and 1 gbp is worth 1.5354 AUD.
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In the above table, 1 AED is worth 0.272300 USD, and 1 USD is worth 3.6724 AED.
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Currency Conversion Questions - Numerical Reasoning Skills - JobTestPrep Another example:
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And finally, another popular table includes a group of currencies which are compared to each other within the table's columns. This table is sometimes more confusing at first, but learning its concept is fairly easy:
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To avoid confusions, make sure to use the left-most column as the reference point. Choosing a currency from that column, means you are now comparing the value of one unit of that currency to other currencies within that row. A thumb rule could be adding the digit 1 before each currency on the left-most column. For example, if we look at USD in the left- most column, and then compare it to currencies within the first row, we are actually comparing the value of 1 USD to other currencies including USD. In this case, USD is weaker than all other currencies as one unit of it is worth less than 1 of any other currency, with GBP being the strongest: 1USD=0.6292GBP
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Moving on to row 3 in the left-most column, we see that 1 GBP is worth 1.5896 USD, which is the inverse of the aforementioned value.
Determine which currency is stronger
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When using the sentence "USD to GBP conversion rate is" we actually mean t hat with each USD you can buy x GBP, with USD assumed to have a value of 1.
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1 USD = 0.7155 EUR. The EUR is stronger than the USD. When compared to 1 USD its value is lower than 1. Applying this pattern you can switch between any two currencies as well as using additional third currency as a converting factor.
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“If 1 USD equals to 0.7155 EUR, what is the value of 100 EUR in USD?” To solve this, the r equired amount should be divided by the provided exchange rate: 100 : 0.7155 = 139.76 USD The same solution should be applied to the question “What is the value of 1 EUR in USD?” 1 : 0.7155 = 1.3976 USD
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