Question

When might it be important to know a currency’s exchange rate?

when planning expenses for an overseas trip
when changing money into smaller denominations
when preparing to buy something expensive
when deciding which college is the best value

Answer 1

Best answer: when planning expenses for an overseas trip.

Explanation: exchange rates matter whenever you need to convert between currencies or compare costs priced in different currencies (for example, buying an expensive item from another country or comparing tuition at a foreign college). They don’t matter when you’re just breaking your money into smaller denominations of the same currency.