Download The Canadian Dollar - Cold Lake Middle School

Weekly News
LEVEL 1
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The Canadian
Dollar
travelling to London, England,
you would exchange Canadian
dollars for British pounds.
Suppose you were standing in
line at a McDonald’s in London
and you were wondering if
5.25 pounds for a Big Mac was
expensive. It doesn’t sound too
bad, until you multiply 5.25 by
the 1.71 exchange rate. That
Big Mac is going to cost you
$8.97 in Canadian dollars.
C
anada’s currency is the
Canadian dollar. It is
what we use to buy and
sell goods and services within
Canada.
Different countries use
different currencies. The
United States uses the
American dollar and the
United Kingdom uses the
pound.
Different currencies
have different values when
compared to one another.
For example, one Canadian
dollar is equal to 0.59 British
pounds, or one British pound
is equal to 1.71 Canadian
dollars. The value of one
currency compared to another
is called its exchange rate.
The most common way
exchange rates affect you is
when travelling. If you were
Exchange rates can go up or
down for different reasons. If a
country has a strong economy,
its currency becomes stronger
and its exchange rates go
down. Currencies can also
go up or down depending on
economic and political news.
For example, news that the
price of oil is going up is often
good for the Canadian dollar,
because Canada exports a lot
of oil.
The Canadian dollar is often
compared to the U.S. dollar.
Currently, the Canadian dollar
WORD POWER
Currency: The money in common use in a
country.
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Free trade agreement: An agreement
among two or more countries to lower or
eliminate taxes on goods or services coming
from the other countries who are part of the
agreement.
Week 12 • 2016/17
is worth 0.74 U.S. dollars. In
2012, the Canadian dollar was
actually worth more than the
U.S. dollar, but it has fallen
since then because of low oil
prices and a slow economy in
Canada.
After the recent election in the
United States, the Canadian
dollar fell from 75 cents to
under 74 cents. If Donald Trump
follows through on his promises
to get rid of several free trade
agreements, it might make it
harder for Canadian businesses
to sell products and services
into the United States, which
would harm the Canadian
economy.
DID YOU KNOW?
A single Canadian dollar is
also called a “loonie,” because
it comes as a gold-coloured
coin with an image of a bird
called a loon on the front.
LEVEL 1 CLASSROOM READY WEEKLY NEWS • week 12 • 2016/17
The Canadian Dollar
Weekly News Q & A
1. What is Canada’s currency?
2. What are some currencies from other countries?
3. What is an exchange rate?
4. Give an example of how exchange rates can affect you when travelling.
5. What can cause an exchange rate to go up or down?
Critical Thinking
1. What are some things that could impact the value of a currency?
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LEVEL 1 CLASSROOM READY WEEKLY NEWS • week 12 • 2016/17
Exchange Rates
Below is a table with the exchange rates between the Canadian dollar and some other world currencies.
Use this information to answer the questions that follow.
CURRENCY
VALUE OF CANADIAN DOLLAR IN
VALUE OF FOREIGN CURRENCY
FOREIGN CURRENCY
IN CANADIAN DOLLARS
U.S. dollar
UK pound sterling
European euro
Australian dollar
Brazilian real
Chinese renminbi
Hong Kong dollar
Indian rupee
Israeli new shekel
Japanese yen
Mexican peso
New Zealand dollar
Russian ruble
Swiss franc
0.74
0.60
0.70
1.00
2.54
5.12
5.78
50.58
2.88
81.63
15.04
1.05
48.01
0.75
1.34
1.67
1.43
1.00
0.39
0.20
0.17
0.02
0.35
0.01
0.07
0.95
0.02
1.34
Bank of Canada exchange rates as at November 17, 2016
For each purchase below, calculate what the cost would be in Canadian dollars. Use the rates listed under
the “Value of foreign currency in Canadian dollars” column in the table above to do the calculations.
Item
Cost
Foreign currency
1.
T-shirt
24.95
European euros
2.
Postcard
32.50
Indian rupees
3.
Coffee
247.50
Russian rubles
4.
Lunch
96.18
Hong Kong dollars
5.
Sunglasses
25.40
Mexican pesos
6.
Scarf
23.64
Swiss francs
7.
Umbrella
8.
Hat
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7.80
16.85
Cost in Canadian dollars
UK pounds
Australian dollars
3
LEVEL 1 CLASSROOM READY WEEKLY NEWS • week 12 • 2016/17
Word Power
Using the words defined below, fill in the blank in each of the following sentences with the word that fits
best. All of the words have been used in the article.
1.Emily her team from last year to her team from this year.
2.Harman had to his shirt for a larger size.
3. After buying her first house, Lisa wanted to know the market of it.
4. Jonathan’s absence would the outcome of the election.
5. The small company was concerned about the downturn.
Affect: To bring about a change in; to have an effect on.
Compared: Examined certain things in order to find out how alike or different they are.
Currency: The money in common use in a country.
Depending: Being controlled or decided by.
Economic: Having to do with the managing of money in a home, business, or government.
Exchange: To give in return for something else; trade.
Value: The worth of a thing in money or in other goods.
Wondering: Having doubt and curiosity about; wanting to know.
Quiz
1. The United States uses the American dollar and the United Kingdom uses the euro.
TrueFalse
2. If a country has a strong economy, its currency becomes stronger and its exchange rates go down.
TrueFalse
3. The value of one currency compared to another is called its .
4. The Canadian dollar is often compared to the .
5. A single Canadian dollar is also called a “.”
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LEVEL 1 CLASSROOM READY WEEKLY NEWS • week 12 • 2016/17
Weekly News Answer Key
The Canadian Dollar
1. What is Canada’s currency?
Canada’s currency is the Canadian dollar.
2. What are some currencies from other
countries?
The United States uses the American dollar
and the United Kingdom uses the pound.
3. What is an exchange rate?
Different currencies have different values
when compared to one another. The value of
one currency compared to another is called
its exchange rate.
4.Give an example of how exchange rates can
affect you when travelling.
Suppose you were standing in line at
a McDonald’s in London and you were
wondering if 5.25 pounds for a Big Mac was
expensive. It doesn’t sound too bad, until
you multiply 5.25 by the 1.71 exchange rate.
That Big Mac is going to cost you $8.97 in
Canadian dollars.
5. What can cause an exchange rate to go up
or down?
If a country has a strong economy, its
currency becomes stronger and its exchange
rates go down. Currencies can also go up or
down depending on economic and political
news. For example, news that the price of oil
is going up is often good for the Canadian
dollar, because Canada exports a lot of oil.
6.31.68
7.13.03
8.16.85
Word Power
1.compared
2.exchange
3.value
4.affect
5.economic
Quiz
1. The United States uses the American dollar
and the United Kingdom uses the euro.
False – The United Kingdom uses the pound.
2. If a country has a strong economy, its
currency becomes stronger and its
exchange rates go down.
True
3. The value of one currency compared to
another is called its EXCHANGE RATE.
4. The Canadian dollar is often compared to the
U.S. DOLLAR.
5. A single Canadian dollar is also called a
“LOONIE.”
Exchange Rates
1.35.68
2.0.65
3.4.95
4.16.35
5.1.79
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