Numeracy tests/ currency conversion


I have been going over some practice tests and they usually have currency conversions. I seem to be getting stuck on these and have forgotten my way around them. I realised there is are a few on the practice tests available here as well.

How would you go around solving a question that asks you to convert lets say dollar to sterling from the table below?
Major Currencies
Rupee/unit Ringit/unit
Dollar 42.275 3.25
Yen 0.39 0.03
Sterling 83.4 6.42
Euro 66.09 5.08

and also how would you tackle the following problem?
If the euro fell in value by 11%, how many euros could you buy for 1500 Ringit?


Convert from dollars into either rupees or ringits (doesn’t matter which but be consistent) then convert the Rupees or ringits into sterling.
$100 buys Rupee 4227.50 (i.e. $100 x 42.275)
Rupee 4227.50 buys £50.69 (i.e. Rupee 4277.50/83.4)

They are just simultaneous equations R/$ =42.275 and R/£ = 83.4 so you can rearrange the terms until you find the exchange rate you want, £/$.

What can help is knowing which currencies are generally strong relative to each other as they tend to keep things fairly realistic, so £ will typically be stronger than $ and €, € stronger than $ and Yen is very weak. Bear this in mind if you end up with an answer implying that there are more yen to the £ than visa versa as this suggests you may be using the exchange rates the wrong way round.

If € weakens by 11% then the new Ringitt/€ rate is 5.08 x 0.89 =4.5212 Ringitt/€
So Ringitt 1500/4.5212 = €331.77


Can anyone help me, am a lil confused how do u know when to divide and when to multiply the currency…i have my grant thornton numerical and verbal in 2 days!!!



(currency you are converting from [F]) x (exchange rate from [F] to [T]) = (currency you are converting to [T])

which leads to:

(currency you are converting to [T]) / (exchange rate from [F] to [T]) = (currency you are converting from [F])

Make sure you know which way the exchange rate is though.


Hi all

I recently did an online test which had a currency conversion Q.

The question involved taking into account a currency conversion fee which was expressed as a percentage.

Which got me thinking, when do you apply the fee in your calculations?

Do you apply the fee to the original currency (i.e. deduct x% from value of original currency) BEFORE converting that currency into the desired currency?
Or do you apply the fee AFTER you’ve carried out the currency conversion i.e. deduct x% from the value of the desired currency?

many thanks!


normally it is the original (base currency)

USD/GBP, you will have to pay fee in GBP.


i was wondering whether someone can help me with this currency question

so the table is the following:


CAD/USD -0.268
JPY/USD 1.068
AUD/USD -0.809
GBP/USD -0.732
GBP/EUR -0.172
JPY/EUR 1.638
GBP/AUD 0.078

can someone explain to me how to work out the following
(1) the movement of EUR/USD?
(2) What was the movement of JPY/AUD?

THANK YOU! :slight_smile:


(1) GBP/USD moved -0.732% and GBP/EUR moved -0.172%.

Since the percentage represents either growth or decline between two currencies then flipping them around simply causes the percentage to go the opposite way. In this instance we want GBP/EUR to become EUR/GBP and the percentage now moves in the positive direction of 0.172%.

Now you can treat them just like you would fractions: EUR/GBP + GBP/USD = EUR/USD which is the same as -0.732 + 0.172 = -0.56%.

(2) This requires exactly the same steps as (1) so maybe you could try it on your own. (Man, that was textbook teacher reversal right there!)


I tried that method for the second question but didn’t get the answer stated by the test as the right answer, I got 1.877 which would be 1.88. The test gives the answer as 1.89. Also why does the method in the test feedback divide one currency movement by the other? When I do that I get completely the wrong answer.