Mistakes to Avoid in Currency Conversions Questions
Currency conversion questions and frequently incorporated into numerical reasoning tests to measure the extent to which you can manipulate numerical data quickly and accurately. Below text presents with five common mistakes why many test takers fail at currency conversion questions in numerical reasoning tests.
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Failing to establish correct multiplications and divisions
One of the most common mistakes that test takers make when completing numerical reasoning conversions questions is that they do not correctly multiply or divide given exchange rates. If you are not sure how to convert one currency into another see beginner numerical currency conversions to find out how to sketch cross multiplication and division tables which are key to work out exchange rate question. Once you get grasp of these you would be able to move to more advanced problems.
Unfamiliarity with currency conversion concepts
A number of test takers lack familiarity with basic exchange rate concepts such as currency appreciation or depreciation and thus fail to answer questions correctly. In essence exchange rate appreciation occurs when one currency strengthens against the other whereas depreciation takes place when one currency weakens against the other. It is important to note that when one currency strengthens against the other it has to decrease whereas when it weakens it has to increase. If you are not familiar with this concept then please see currency conversion test guide to view related tutorial on the subject.
Not practicing enough
Not setting apart enough time to practice. Many candidates fail to work out foreign exchange rate questions due to the lack of practice. Practice will not only enable your mind to assimilate new learnt things but also it will enable you to add speed into your calculations. Note that speed is of essence in numerical reasoning tests since in your real assessment you will have to work against clock. Hence, during your practice aim to get speed into your calculations and also get your calculation technique right.
Failing to establish what the question is asking
One of the most common mistakes test takers make is that they do not establish what the question is asking them to do. They fail to establish what currency needs to be converted into what currency using what exchange rate. It is common that numerical reasoning questions at times are worded in somewhat puzzling way but this is just to test your attention to detail.
Getting afraid of exchange rate questions too quickly
Many test takers get afraid of numerical reasoning questions too quickly especially when the question is worded in somewhat puzzling way. It is always good practice to read the question carefully so that you can decide what to do. Judging currency conversion questions before you properly read them as challenging may give you the impression that the test question is difficult or that it requires lengthy calculations to work it out and hence will put you into negative frame of mind. Always read the question carefully to decide on appropriate courses of action.