Advanced Numerical Exchange Rate Questions
If you are reading this page then you may want to know how to improve at foreign exchange rate questions for numerical reasoning tests. Many people struggle to answer these questions nevertheless 'know-how' is not hard to grip. Currency exchange rate questions encompass wide range of problems and depending on difficulty level you may be confronted with challenges ranging from working out simple conversions across one exchange rate through to more complex problems of converting values across multiple currencies. To succeed you will need to understand few concepts and calculation methods and you will have to be committed to developing abilities in required areas. Below is presented advanced example question to demonstrate how to work out currency conversions when moving across four exchange rates.
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How to get around advanced currency questions
As mentioned above the concept of money conversion does not have to be difficult all you need to do is to gain basic knowledge and understanding and undertake thorough practice. To demonstrate how to make conversions when moving across four exchange rates in numerical reasoning test consider the table with question below. Nevertheless if you are new to this and want to see easier examples then refer to intermediate aptitude currency conversion questions.
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Providing that 1GBP equals to 1.5532 AUD how many JPY was a Pound Sterling worth in July?
The above figure may seem to be somewhat puzzling for number of test takers however don’t fret you can solve such questions in aptitude tests if you put your mind to it. Notice to tackle the above you need to convert 1.5532 AUD to USD using euro exchange rate and then you need to convert the amount to Japanese Jens. It’s that simple! The quick way of doing this would be 1.5532 / 1.2284 / 0.7959 x 78.3500 = 124.4709 JPY. Below you can review break down of this calculation in tree simple steps.
Step by step solution
- Firstly, to convert 1.5532 of Australian dollars to Euros divide 1.5532 by 1.2284. If you have difficulty to work this out sketch cross multiplications and divisions tables and then multiply and divide crosswise and you will get 1.2644 Euros which equals to one pound. If you are not familiar with this concept then you can check out chapter on biginner currency conversions which provides necessary explanation. Note that crossway sketches may help you in your understanding to formulate key steps to work out the question in your numeracy test.
- Secondly, take 1.2644 Euros and convert it into US dollars. Remember, if rate of exchange is USD to EUR and you have some Euros that you want to convert into US dollars then you have to multiply the amount by USD and divide the amount by EUR. Conversely, if you want to convert some US dollars to euro then you have to multiply the amount by EUR and divide by USD.
- Finally convert 1.5886 US dollars to Japanese Jens as illustrated in the above table.
Quick tips
It is important that you practice currency conversion problems at daily bases so that you can convert these in your head or with little help of pen and paper. Try to minimize excessive use of sketches as this may take away valuable time in your numerical reasoning test as you will be working against the clock. Nevertheless by regular practice you will find your own ways to perform conversions. Remember, the more of the exchange rates questions you do the more your brain assimilates and gets used to such mental calculations. Good luck with your preparation.