Beginner Numerical Currency Conversion Questions
By the time you have reached this page you may already know that numerical reasoning tests often comprise currency conversion questions. Many candidates may struggle with these especially in the beginning of their practice as it can be quite hard to get your head around them. Usually currency conversion problems in numerical reasoning tests seem to be quite complex and tricky to work out nevertheless few multiplications and division tactics would do the trick for you. Below we will look at the basics of such questions and demonstrate how to perform calculations when exchanging sums of money using one exchange rate.
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How to convert one currency into another
To get you started and provide you with some background on this topic let’s review simple currency conversions first. For the following examine the exchange rates and question below.
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How many Pounds Sterling could you exchange for one Euro?
As you can see the problem requires you to work out number of pounds you would get for a euro. If you know the correct calculation method then this is simple task to do. The trick here is to divide 1GBP by 1.1752 EUR to get the correct answer; that is 1/ 1.1752 = 0.8509. So, for 1 EUR you would get 0.8509 GBP. Now, you may ask why we had to divide 1 GBP by 1.1752 EUR; to find out read the following.
Whenever you will be presented with aptitude currency conversion questions in your aptitude test which will require you to convert currencies you may visualise or at the early stages of your practice sketch on a scrap paper cross multiplication and division tables which are the key to each and every foreign exchange problem. In essence these are direct proportions or simple equations expressed in proportional terms where you will have to solve for one unknown by cross multiplying. Such table for our problem would be as follows.
- 1GBP / 1.1752 EUR = (? GBP) / 1 EUR
Now, you may ask how to cross multiply? Note that here is a simple rule – for example if your unknown is at top right then multiply bottom right with top left numbers and divide the result with left bottom value. Contrary if the unknown is at bottom left then times the top left and bottom right and divide the outcome with top right number. The point is that you will always multiply crosswise and then divide so in our case 1 x 1 / 1.1752 which equals 0.8509. Alternatively, you may set up an equation 1GBP x 1 EUR = 1.1752 EUR x X and solve for X. However, when working out currency conversion questions in numerical aptitude tests cross multiplication and division is the quickest method to convert currencies.
As you will go along with your numerical reasoning test preparation and improve your skills it may not be necessary to outline these into the drawings as your mind will become swift in making such computations. However for now, try to understand and get the grip of these and use cross multiplication tables if you need to as it forms the basics of working out exchange rate problems. Once you get the good grasp of the concept move on to our next tutorial to learn how to convert sums across two currencies.