Global Banking Lesson 5 Exchange Rate Activity
Global Banking Lesson 5 Exchange Rate Activity

Time: 15 minutes
Skills: Holistic Thinking and Technology Skills
Objectives 1,2, 3 & 4
Related Resources:
- What do the terms weak dollar and strong dollar mean? (2011, July 4). In Investopia. Retrieved from: http://www.investopedia.com/ask/answers/06/strongweakdollar.asp#axzz1yREg8OR3

Students should read the short Investopia article ahead of time to understand the concept of weak and strong currencies.

The instructor asks the students to do the following:

    • Visit the Web site of a financial institutions and national newspaper that publishes exchange rate among the world’s currencies. Compare the performance of the U.S. dollar against the European euro since a specific date (say Jan 1, 2007). Ask them to find out between that date and now, has the dollar fallen or risen in value against the euro? Students can be asked to draw excel charts.
    • What would happen to the U.S. standing in the world if dollar loses its value against euro? Is the rise of euro as rival currency good for the U.S.? World? Discuss it from the social and political point of view. Ignore technical economic arguments.

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