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- Currency Conversion

Need to convert currency? Learn how not to fear currency conversion questions with our handy tips and guidelines.

Usually, currency exchange data is presented in tables. The first type of currency table simply specifies other currencies with respect to one currency whose value is assumed 1. In this case, the table's title would be: 'Currency exchange rates per 'x'.

Other, similar tables would have the following form:

In the above table, looking at the first value: 1 AUD is worth 0.651 GBP, and 1 GBP is worth 1.5354 AUD.

Or:

In the above table, 1 AED is worth 0.272300 USD, and 1 USD is worth 3.6724 AED.

And finally, another popular table includes a group of currencies which are compared to each other within the table's columns. This table is sometimes more confusing at first, but learning its concept is fairly easy:

To avoid confusions, make sure to use the left-most column as the reference point.

Choosing a currency from that column, means you are now comparing the value of one unit of that currency to other currencies within that row.

A rule of thumb could be adding the digit 1 before each currency on the left-most column.

For example, if we look at USD in the left-most column, and then compare it to currencies within the first row, we are actually comparing the value of 1 USD to other currencies including USD. In this case, USD is weaker than all other currencies as one unit of it is worth less than 1 of any other currency, with GBP being the strongest:

1USD=0.6292GBP

Moving on to row 3 in the left-most column, we see that 1 GBP is worth 1.5896 USD, which is the inverse of the aforementioned value.

When using the sentence 'USD to GBP conversion rate is' we actually mean that with each USD you can buy x GBP, with USD assumed to have a value of 1.

1 USD = 0.7155 EUR. The EUR is stronger than the USD. When compared to 1 USD its value is lower than 1.

Applying this pattern you can switch between any two currencies as well as using additional third currency as a converting factor.

'If 1 USD equals to 0.7155 EUR, what is the value of 100 EUR in USD?'

To solve this, the required amount should be divided by the provided exchange rate:

100 : 0.7155 = 139.76 USD

The same solution should be applied to the question 'What is the value of 1 EUR in USD?'

1 : 0.7155 = 1.3976 USD

There are many different types of numerical reasoning tests with a variety of question formats and topics. Currency exchange questions are a common component of numerical reasoning tests and although they are tricky, they can be mastered with enough practice. Numerical reasoning tests are commonly utilized as part of the assessment test battery in the recruitment process, particularly in the large financial and consulting companies. JobTestPrep provides full preparation for a range of numerical tests. With company-specific tailored tests, such as the Macquarie psychometric assessment, preparation that mimics specific test providers such as Cubiks test preparation, and comprehensive all-inclusive numerical reasoning test practice.

Learn a little more by reading our sample questions below!

Which of these amounts is bigger: 40 pence or £0.70?

There are one hundred pence in one pound:

£1 = 100 pence and therefore,

The number of pence in £0.70 is:

0.70 x 100 = 70 pence

70 pence are a bigger amount than 40 pence.

Another way of explaining it is that:

£1 = 100 pence and therefore,

1 penny = £1/100 = £0.01

40 pence = £40/100 = £0.40, which is a smaller amount than £0.70.

If you take away a whole pound from £15.75, how many pence are left?

Subtracting a whole pound from £15.75 equals: 15.75 – 1.00 = £14.75

There are one hundred pence in one pound: £1 = 100 pence

To work out the number of pence in £14.75:

£14 = 14 x 100 = 1400 pence

£0.75 = 0.75 x 100 = 75 pence

1400 + 75 = 1475 pence

How many pounds does £0.25 + 25 pence make?

1 penny = £1/100 = £0.01

Therefore, 25 pence = £25/100 = £0.25

0.25 + 0.25 = £0.5 which is 0.5 pound.

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- Exchange Tables
- Determine Which Currency is Stronger
- Exchange Question
- Preparation
- Sample Questions